Allegion PLC (ALLE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.97 | 4.64 | 4.65 | 4.55 | 4.72 | 4.41 | 4.35 | 4.33 | 4.07 | 3.89 | 4.04 | 4.22 | 4.37 | 4.76 | 5.29 | 5.37 | 5.44 | 5.30 | 5.24 | 5.83 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 5.20 | 4.83 | 5.39 | 11.57 | 12.98 | 5.39 | 5.88 | 5.93 | 6.40 | 5.71 | 2.56 | 5.84 | 5.55 | 7.06 | 4.99 | 5.05 | 4.36 | 4.29 | 5.32 | 6.18 |
Allegion PLC's activity ratios show fluctuations over the periods analyzed.
1. Inventory turnover has been gradually decreasing from 5.83 in March 2020 to 4.97 in December 2024, indicating a slight decrease in the efficiency of managing inventory levels over time.
2. Receivables turnover data is not available for all periods, suggesting limited insight into how quickly the company collects its receivables.
3. Payables turnover data is also not provided, making it challenging to assess how efficiently Allegion manages its payables.
4. Working capital turnover has shown variability, with a significant increase in December 2023, reaching 12.98, possibly due to changes in the company's working capital management strategies. However, it dropped to 4.83 in September 2024, indicating a decline in the efficiency of utilizing working capital.
Overall, Allegion PLC's activity ratios reflect mixed performance in inventory management and working capital turnover, with limited information available for receivables and payables turnover. This suggests the need for a closer examination of the company's operational efficiency and liquidity management practices.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 73.39 | 78.69 | 78.53 | 80.22 | 77.35 | 82.73 | 84.00 | 84.30 | 89.68 | 93.71 | 90.27 | 86.48 | 83.52 | 76.60 | 69.00 | 67.99 | 67.05 | 68.91 | 69.70 | 62.64 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Allegion PLC, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The average DOH for Allegion PLC has been gradually increasing over the years, indicating that the company is holding inventory for a longer period.
- A higher DOH could suggest potential issues with inventory management, such as overstocking or slow-moving inventory.
- In recent periods, there has been some fluctuation in the DOH, with a peak observed in September 2022 and a subsequent decline by December 2024. This suggests some variability in inventory management efficiency.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO for Allegion PLC, indicating that the company may not have significant accounts receivable or that this metric is not disclosed.
- DSO is a metric that measures how quickly a company is able to collect its accounts receivable. Without this data, it is challenging to assess the efficiency of Allegion's sales collection process.
3. Number of Days of Payables:
- Similar to DSO, the data does not include information on the number of days of payables for Allegion PLC, indicating a lack of disclosure on the company's payment terms and practices.
- Analyzing payables turnover would provide insights into how long the company takes to pay its suppliers, which could affect its working capital management and relationships with vendors.
In conclusion, while we can observe trends and fluctuations in the Days of Inventory on Hand for Allegion PLC, the absence of data on Days of Sales Outstanding and Number of Days of Payables limits our ability to comprehensively assess the company's overall activity ratios and working capital management efficiency.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 7.62 | 10.97 | 10.86 | 10.60 | 10.73 | 10.51 | 10.32 | 10.11 | 7.83 | 7.74 | 9.59 | 9.22 | 9.23 | 9.34 | 9.94 |
| Total asset turnover | 0.84 | 0.75 | 0.77 | 0.84 | 0.85 | 0.86 | 0.87 | 0.84 | 0.82 | 0.79 | 0.80 | 0.96 | 0.94 | 0.93 | 0.95 | 0.93 | 0.89 | 0.90 | 0.96 | 1.04 |
The fixed asset turnover ratio measures how efficiently a company generates sales from its fixed assets. For Allegion PLC, the fixed asset turnover ratio has been consistently high, ranging from 7.62 to 10.97 over the past few years. This indicates that Allegion is effectively utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio reflects how well a company is utilizing all its assets to generate sales. Allegion's total asset turnover ratio has fluctuated between 0.75 and 1.04 during the same period. The decline in the total asset turnover ratio from 2020 to 2022 before showing a slight increase in 2023 and 2024 suggests some challenges in efficiently utilizing all assets to drive revenue.
Overall, while Allegion PLC shows strong efficiency in generating sales from its fixed assets, there may be opportunities for improvement in optimizing the utilization of all assets to enhance overall profitability and performance.