Autoliv Inc (ALV)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 9.19 | 8.55 | 7.68 | 8.65 | 7.77 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | 122.81 | 9.64 | 6.64 |
Autoliv Inc's inventory turnover has shown a generally increasing trend from 7.77 in 2020 to 9.19 in 2024, indicating that the company is managing its inventory more efficiently over the years, converting inventory into sales at a faster rate.
On the other hand, the receivables turnover and payables turnover ratios are not provided for any of the years, making it challenging to assess the efficiency of Autoliv's collection of receivables and payment of payables.
The working capital turnover ratio has witnessed a significant spike from 6.64 in 2020 to 122.81 in 2022, suggesting a substantial improvement in utilizing working capital to generate sales revenue during that period. However, data is not available for 2023 and 2024, limiting a comprehensive analysis of this ratio's long-term trend.
Overall, Autoliv Inc's activity ratios demonstrate varying levels of efficiency in managing inventory and working capital during the period covered by the data.
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 | 39.72 | 42.68 | 47.50 | 42.21 | 46.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Autoliv Inc's activity ratios indicate the efficiency of the company's management in managing its inventories, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- The trend in Autoliv Inc's DOH shows a slight decrease over the years from 46.99 days in 2020 to 39.72 days in 2024. This suggests that the company has been able to manage its inventory levels more effectively, turning over inventory more quickly.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO), which measures how quickly a company collects payments from its customers. Without this information, it is not possible to evaluate the efficiency of Autoliv Inc in collecting receivables.
3. Number of Days of Payables:
- Similarly, the information on the Number of Days of Payables, which measures how quickly a company pays its suppliers, is not available. This ratio provides insights into the company's payment practices and liquidity management but is not disclosed in the data provided.
In conclusion, based on the available data, Autoliv Inc has shown improvement in managing its inventory levels, but a comprehensive analysis of its overall working capital efficiency would require additional information on DSO and payables turnover. This can give a more holistic view of the company's operational efficiency and management of its working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.17 | 4.14 | 3.98 |
| Total asset turnover | 1.33 | 1.26 | 1.15 | 1.09 | 0.91 |
The long-term activity ratios for Autoliv Inc, namely the Fixed Asset Turnover and Total Asset Turnover, show the efficiency of the company in generating sales from its assets over a period of years.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company's fixed assets are used to generate sales. A higher ratio indicates better utilization of fixed assets.
- Autoliv Inc's Fixed Asset Turnover has shown a positive trend over the years, increasing from 3.98 in 2020 to 4.17 in 2022, which suggests that the company has become more efficient in generating sales from its fixed assets.
- However, there is missing data for 2023 and 2024, preventing a complete analysis of the trend in the Fixed Asset Turnover ratio for those years.
2. Total Asset Turnover:
- The Total Asset Turnover ratio indicates how effectively a company utilizes all its assets to generate sales. A higher ratio signifies better asset utilization.
- Autoliv Inc's Total Asset Turnover has also shown an improving trend, increasing from 0.91 in 2020 to 1.33 in 2024. This suggests that the company has been more efficient in generating sales from its total assets over the years.
- The consistent increase in the Total Asset Turnover ratio reflects Autoliv Inc's ability to generate more revenue relative to its total assets, indicating improved operational efficiency and potentially better management of resources.
In conclusion, based on the data provided, Autoliv Inc has shown positive trends in both the Fixed Asset Turnover and Total Asset Turnover ratios over the years, which indicates an improvement in the company's efficiency in utilizing its assets to generate sales.