Adient PLC (ADNT)

Short-term

Turnover ratios

Adient PLC's inventory turnover has been fluctuating over the past five years, with a peak in 2020 followed by a decrease in the subsequent years. The company's ability to manage its inventory efficiently improved in 2024 compared to 2023.

The receivables turnover ratio data is not available for analysis; thus, it is difficult to evaluate the efficiency of Adient PLC in collecting its receivables during the period.

The payables turnover ratio indicates that Adient PLC takes approximately 5 to 6 times to pay off its creditors annually. The slight decrease in the payables turnover ratio from 2021 to 2022 was followed by a relatively stable performance in the subsequent years.

The working capital turnover ratio has shown significant fluctuations over the five-year period, with a notable spike in 2024. This increase suggests that Adient PLC generated higher revenue relative to its working capital investment in that year compared to the previous years.

Overall, the activity ratios of Adient PLC provide insights into its operational efficiency in managing inventory, payables, and working capital turnover, although the absence of receivables turnover data limits a comprehensive analysis of the company's overall efficiency in managing its operating assets and liabilities.

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Average number of days

Days of inventory on hand (DOH) for Adient PLC have shown fluctuation over the past five years, ranging from 20.11 days in 2024 to 27.71 days in 2021. A lower DOH indicates more efficient management of inventory levels, suggesting that the company is able to turn over its inventory at a faster rate.

Days of sales outstanding (DSO) data is not provided for Adient PLC, limiting the ability to evaluate the efficiency of the company in collecting payments from customers. A lower DSO would indicate that the company is collecting receivables more quickly, improving cash flow and liquidity.

The number of days of payables for Adient PLC has varied over the years, ranging from 60.48 days in 2021 to 67.93 days in 2022. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, potentially benefiting from improved cash flow but straining supplier relationships.

Overall, Adient PLC should continue to monitor and manage its activity ratios to ensure optimal efficiency in managing inventory, collecting receivables, and paying suppliers.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. For Adient PLC, the trend in the fixed asset turnover ratio has been slightly fluctuating over the past five years, ranging from 8.01 in 2020 to 11.14 in 2023. The ratio was at its lowest in 2020 and then saw an improvement in subsequent years, indicating that the company has been able to increase its revenue generation from fixed assets.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all its assets. Adient PLC's total asset turnover ratio has also been varying over the years, with values ranging from 1.23 in 2020 to 1.63 in 2023. This indicates that the company has been effectively utilizing its total assets to generate revenue, with a noticeable improvement in 2023.

Overall, both the fixed asset turnover and total asset turnover ratios for Adient PLC show a generally positive trend over the years, suggesting that the company has been successful in efficiently utilizing its assets to drive sales growth.