Advanced Energy Industries Inc (AEIS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.98 | 3.79 | 3.67 | 3.60 | 3.78 | 3.30 | 3.14 | 3.28 | 3.38 | 3.24 | 3.77 | 4.48 | 4.95 | 3.18 | 2.56 | 2.12 | 1.53 | 1.47 | 3.54 | 3.50 |
| Receivables turnover | 5.80 | — | — | — | 6.11 | — | — | — | 134.76 | 74.98 | 97.43 | 271.97 | 293.50 | 105.73 | — | — | — | — | 235.24 | — |
| Payables turnover | 9.44 | 9.84 | 9.65 | 7.78 | 8.34 | 6.15 | 6.29 | 6.47 | 5.90 | 5.82 | 5.42 | 6.82 | 8.75 | 5.14 | 3.69 | 2.98 | 2.06 | 1.68 | 8.80 | 7.88 |
| Working capital turnover | 1.19 | 1.27 | 2.16 | 2.26 | 2.31 | 2.33 | 2.26 | 1.85 | 1.83 | 1.83 | 2.02 | 2.03 | 2.06 | 2.15 | 1.99 | 1.72 | 1.44 | 1.16 | 1.29 | 1.44 |
Activity ratios provide insights into how efficiently a company is managing its assets and operations.
1. Inventory Turnover: Advanced Energy Industries Inc. has maintained a relatively stable inventory turnover ratio over the past eight quarters, ranging from 2.56 to 3.16. This indicates that the company is efficiently managing its inventory levels and turning over its inventory multiple times a year.
2. Receivables Turnover: The receivables turnover ratio for Advanced Energy Industries Inc. has shown some fluctuations over the quarters, ranging from 5.71 to 7.14. A higher receivables turnover ratio suggests that the company is effectively collecting its accounts receivable and converting credit sales into cash quickly.
3. Payables Turnover: The payables turnover ratio has also varied over the quarters, ranging from 5.07 to 7.94. A higher payables turnover ratio indicates that the company is paying off its suppliers more frequently, which could potentially strain its liquidity position.
4. Working Capital Turnover: The working capital turnover ratio has shown some variability, ranging from 1.20 to 2.34. A higher working capital turnover ratio signifies that the company is generating more revenue per unit of working capital employed, indicating efficient utilization of its resources.
Overall, Advanced Energy Industries Inc. appears to be managing its assets and operations efficiently based on the trends observed in its activity ratios over the past eight quarters. However, it is essential for the company to monitor and analyze these ratios consistently to ensure sustainable growth and profitability.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.61 | 96.26 | 99.48 | 101.39 | 96.56 | 110.53 | 116.11 | 111.19 | 108.12 | 112.56 | 96.72 | 81.54 | 73.73 | 114.76 | 142.51 | 171.96 | 238.35 | 247.72 | 103.13 | 104.18 |
| Days of sales outstanding (DSO) | days | 62.89 | — | — | — | 59.70 | — | — | — | 2.71 | 4.87 | 3.75 | 1.34 | 1.24 | 3.45 | — | — | — | — | 1.55 | — |
| Number of days of payables | days | 38.66 | 37.11 | 37.84 | 46.92 | 43.78 | 59.33 | 58.04 | 56.42 | 61.89 | 62.70 | 67.38 | 53.56 | 41.71 | 71.04 | 98.87 | 122.37 | 176.86 | 216.79 | 41.46 | 46.30 |
Advanced Energy Industries Inc.'s activity ratios indicate the company's efficiency in managing its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- The trend of the Days of Inventory on Hand has been fluctuating over the past eight quarters, ranging from a low of 115.37 days to a high of 142.33 days.
- The company seems to have relatively high levels of inventory on hand, which could indicate inefficiencies in inventory management or potential issues with sales forecasting.
2. Days of Sales Outstanding (DSO):
- Advanced Energy Industries Inc.'s Days of Sales Outstanding show a varying trend, with the number of days ranging from 51.12 days to 63.98 days over the quarters analyzed.
- A lower DSO indicates that the company is collecting receivables more quickly, which is generally favorable as it implies a more efficient accounts receivable management system.
3. Number of Days of Payables:
- The days of payables trend for Advanced Energy Industries Inc. fluctuates within a range of 45.98 days to 72.00 days over the quarters analyzed.
- Lower days of payables could point to the company paying its suppliers more promptly, potentially impacting cash flow, while higher days of payables may indicate favorable terms with suppliers, allowing for more extended payment periods.
In general, interpreting these ratios together provides insights into how efficiently Advanced Energy Industries Inc. is managing its working capital and operations. The company's management may want to review and improve inventory management practices, optimize accounts receivable processes, and ensure effective management of payables to enhance overall operational efficiency and cash flow in the long run.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 9.78 | 10.70 | 11.56 | 12.21 | 12.38 | 12.79 | 12.43 | 12.76 | 12.64 | 12.41 | 12.75 | 12.82 | 12.29 | 12.54 | 10.83 | 9.11 | 7.30 | 5.79 | 17.40 | 21.39 |
| Total asset turnover | 0.64 | 0.69 | 0.94 | 0.93 | 0.92 | 0.88 | 0.84 | 0.82 | 0.80 | 0.78 | 0.83 | 0.85 | 0.86 | 0.84 | 0.73 | 0.63 | 0.52 | 0.38 | 0.70 | 0.78 |
The long-term activity ratios of Advanced Energy Industries Inc. show the efficiency of the company in utilizing its fixed assets and total assets to generate sales revenue over the past eight quarters.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. A higher ratio indicates that the company is able to generate more sales per dollar of fixed assets.
- Advanced Energy Industries Inc.'s fixed asset turnover has been consistently high, ranging from 9.88 to 12.80 over the past eight quarters. This indicates that the company has been effectively using its fixed assets to generate sales revenue.
- The trend shows a slight decrease in fixed asset turnover from Q1 2022 to Q4 2023, indicating a possible decrease in the efficiency of utilizing fixed assets to generate revenue over time. However, the ratio remains at a relatively high level overall.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently the company is utilizing all its assets (both fixed and current) to generate sales. A higher ratio suggests that the company is generating more sales per dollar of total assets.
- Advanced Energy Industries Inc.'s total asset turnover has fluctuated between 0.65 and 0.95 over the past eight quarters. The ratio shows variation but generally remains above 0.80, indicating effective asset utilization.
- The trend demonstrates some variability in total asset turnover, with peaks and troughs observed over the quarters. This variability may be influenced by changes in sales or asset base composition within the company.
Overall, Advanced Energy Industries Inc. has demonstrated strong efficiency in utilizing both fixed assets and total assets to generate sales revenue, as indicated by the high turnover ratios over the observation period. Despite some fluctuations, the company's ability to effectively generate sales relative to its asset base suggests efficient operational performance and effective asset management strategies.