Arcosa Inc (ACA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.71 | 4.64 | 5.76 | 5.15 | 5.61 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 5.87 | 4.80 | 4.59 | 5.04 | 5.46 |
Arcosa Inc's inventory turnover ratio measures the efficiency of the company in managing its inventory. The trend shows a slight fluctuation over the years, with the ratio ranging from 4.64 to 5.76. A higher inventory turnover indicates better management of inventory levels, facilitating faster conversion of inventory into sales.
The receivables turnover ratio, representing how efficiently the company collects its accounts receivable, is not provided in the data. A higher receivables turnover ratio would indicate that the company is efficient in collecting payments from its customers.
Similarly, the payables turnover ratio, which reflects how quickly the company pays its suppliers, is not available in the data. A higher payables turnover ratio would suggest the company is managing its payables effectively by paying suppliers promptly.
The working capital turnover ratio, which measures how well the company generates revenue from its working capital, fluctuates between 4.59 and 5.87 over the years. A higher working capital turnover ratio signifies that the company is efficiently utilizing its working capital to generate sales revenue.
In summary, Arcosa Inc maintains relatively stable inventory turnover and working capital turnover ratios, indicating good efficiency in managing inventory and working capital. However, the absence of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.93 | 78.67 | 63.33 | 70.92 | 65.03 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios for Arcosa Inc provide insight into the efficiency of its operations in managing inventory, collecting receivables, and paying its payables.
1. Days of Inventory on Hand (DOH):
- Arcosa Inc's DOH has shown some fluctuations over the years, ranging from 63.33 days to 78.67 days.
- A lower DOH indicates the company is selling inventory quickly, while a higher DOH may suggest excess inventory or potential obsolescence.
- The company should aim to strike a balance in managing inventory levels to optimize working capital and reduce carrying costs.
2. Days of Sales Outstanding (DSO):
- Data for DSO is not provided for any of the years, meaning we lack insight into how quickly Arcosa Inc collects its accounts receivable.
- DSO is a key metric to assess the effectiveness of the company's credit and collection policies.
3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not available for any year.
- Extending payables can provide a source of short-term financing, but it's essential to maintain good relationships with suppliers.
Overall, a comprehensive analysis of activity ratios should include all three components (DOH, DSO, and payables) to provide a holistic view of Arcosa Inc's operational efficiency and working capital management practices.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.87 | 1.69 | 2.12 |
| Total asset turnover | 0.52 | 0.65 | 0.67 | 0.64 | 0.73 |
The fixed asset turnover ratio measures the efficiency of a company in generating sales from its fixed assets. A higher ratio indicates better asset utilization.
For Arcosa Inc:
- The fixed asset turnover ratio declined from 2.12 in 2020 to 1.69 in 2021, suggesting a decrease in the company's ability to generate sales from its fixed assets.
- In 2022, the ratio improved to 1.87, indicating a slight recovery in asset utilization.
- However, data for 2023 and 2024 are not available.
Total asset turnover ratio measures how well a company generates sales from its total assets, including both fixed and current assets.
For Arcosa Inc:
- The total asset turnover ratio decreased from 0.73 in 2020 to 0.64 in 2021, indicating a reduced sales generation capacity relative to its total assets.
- In 2022, the ratio slightly increased to 0.67, but dropped again to 0.65 in 2023, and further decreased to 0.52 in 2024.
Overall, based on the data provided, Arcosa Inc experienced fluctuations in both fixed asset turnover and total asset turnover ratios over the years, suggesting varying levels of efficiency in utilizing its assets to generate sales.