Advanced Energy Industries Inc (AEIS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.64 | 3.16 | 3.11 | 2.73 | 3.95 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.38 | 1.20 | 2.32 | 1.84 | 2.07 |
Activity ratios provide insights into how efficiently a company is managing its assets and liabilities to generate sales revenues. Let's analyze the activity ratios of Advanced Energy Industries Inc based on the provided data:
1. Inventory Turnover:
- The inventory turnover ratio indicates how many times a company sells and replaces its inventory within a specific period. Advanced Energy Industries Inc's inventory turnover has fluctuated over the years, decreasing from 3.95 in 2020 to 2.64 in 2024. This suggests that the company is taking longer to sell its inventory, which may indicate overstocking or declining sales.
2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company collects payments from its customers. In this case, the data shows "—," indicating that information on receivables turnover is not available for any of the years. Without this data, it is challenging to assess the effectiveness of Advanced Energy Industries Inc's accounts receivable management.
3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers. Similar to receivables turnover, the data for payables turnover is unavailable for the years provided. Without this information, it's difficult to evaluate how efficiently the company manages its accounts payable.
4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company utilizes its working capital to generate sales. Advanced Energy Industries Inc's working capital turnover has fluctuated, with a peak of 2.32 in 2022 and a low of 1.20 in 2023. A higher turnover ratio generally indicates better efficiency in utilizing working capital to generate sales.
In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into the efficiency of Advanced Energy Industries Inc's operations, the lack of data on receivables turnover and payables turnover limits a comprehensive assessment 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 | 138.08 | 115.37 | 117.31 | 133.73 | 92.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for Advanced Energy Industries Inc has shown an increasing trend over the years, from 92.44 days in 2020 to 138.08 days in 2024. This indicates that the company is taking longer to sell its inventory or may be facing challenges in managing its inventory efficiently.
On the other hand, the Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available, which limits our ability to fully assess the company's efficiency in collecting receivables and managing payables.
In conclusion, the rising trend in Days of Inventory on Hand for Advanced Energy Industries Inc suggests a potential inefficiency in inventory management that may require further investigation. The lack of DSO and Payables information hinders a comprehensive analysis of the company's overall activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 12.43 | 6.72 | 12.34 |
| Total asset turnover | 0.66 | 0.65 | 0.93 | 0.80 | 0.86 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. In the case of Advanced Energy Industries Inc, the fixed asset turnover ratio has shown some fluctuations over the years.
The ratio was 12.34 in December 2020, indicating that the company generated $12.34 in sales for every dollar invested in fixed assets. However, this ratio decreased to 6.72 in December 2021 before increasing again to 12.43 in December 2022. The ratios for December 2023 and 2024 are not available.
The total asset turnover ratio, on the other hand, measures how effectively a company is using all its assets to generate revenue. Advanced Energy Industries Inc's total asset turnover ratio has also varied during the period under consideration.
In December 2020, the total asset turnover ratio was 0.86, indicating that the company generated $0.86 in sales for every dollar invested in total assets. The ratio declined to 0.80 in December 2021, before increasing to 0.93 in December 2022. However, it decreased to 0.65 in December 2023 and remained almost unchanged at 0.66 in December 2024.
Overall, these ratios suggest that Advanced Energy Industries Inc's efficiency in utilizing both fixed assets and total assets to generate revenue has fluctuated over the years. Further analysis and comparison with industry peers may provide more insights into the company's performance in this aspect.