Autoliv Inc (ALV)

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 9.05 9.02 9.11 8.29 8.14 8.34 8.12 7.91 9.22 8.16 8.45 8.17 8.41 8.97 8.47 9.27 10.05 10.10 10.03 9.97
Receivables turnover 4.59 — — — 4.50 — — 8,166.00 4.70 8,581.80 8,764.80 7,790.60 4.06 6,425.91 7,064.10 5,446.33 5.23 5.14 5.05 4.90
Payables turnover 4.63 4.76 4.68 4.86 4.66 5.13 5.63 5.21 6.34 7.00 6.76 5.76 5.47 7.01 10.42 8.30 7.91 8.30 7.80 7.80
Working capital turnover — 354.71 68.05 17.14 122.75 67.30 36.73 9.61 9.60 9.55 9.21 6.43 6.59 8.67 5.74 7.56 14.35 14.07 13.41 22.98

Autoliv Inc.'s activity ratios reflect the company's efficiency in managing its assets and liabilities during the given periods.

1. Inventory turnover: Autoliv Inc. has seen a consistent improvement in its inventory turnover ratio over the quarters, indicating that the company is utilizing its inventory efficiently to generate sales. The ratio has been above 7.5 in all quarters, with a peak of 8.61 in Q2 2023, suggesting good control over inventory levels.

2. Receivables turnover: The receivables turnover ratio has been relatively stable, ranging between 4.37 and 4.64. This consistency indicates that Autoliv Inc. is efficient in collecting payments from customers, with sales being converted into cash at a moderate pace.

3. Payables turnover: Autoliv Inc.'s payables turnover ratio has fluctuated over the quarters but has generally remained around 4.4 to 4.8. A lower ratio indicates that the company takes longer to pay its suppliers, potentially indicating favorable credit terms or managing cash flow effectively.

4. Working capital turnover: The working capital turnover ratio, although not available for some quarters, shows a significant increase from Q1 2022 to Q3 2023, before dropping in Q4 2023. This suggests that Autoliv Inc. has been able to generate higher revenue relative to its working capital, indicating efficient utilization of resources to drive sales growth.

Overall, Autoliv Inc. demonstrates a reasonable level of efficiency in managing its assets and liabilities based on the activity ratios analyzed.

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 40.35 40.49 40.07 44.02 44.87 43.75 44.94 46.16 39.60 44.70 43.21 44.68 43.42 40.71 43.10 39.36 36.34 36.12 36.38 36.61
Days of sales outstanding (DSO) days 79.49 — — — 81.03 — — 0.04 77.66 0.04 0.04 0.05 89.82 0.06 0.05 0.07 69.77 71.02 72.27 74.47
Number of days of payables days 78.87 76.60 78.03 75.13 78.39 71.17 64.85 70.03 57.54 52.17 53.96 63.42 66.76 52.04 35.02 44.00 46.14 43.95 46.80 46.79

Autoliv Inc.'s activity ratios reflect the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH):
- Autoliv Inc. improved its inventory management in Q4 2023 compared to previous quarters, with a decrease in days of inventory on hand to 42.68 days. This indicates that the company is selling its inventory at a faster rate and efficiently managing its stock levels.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding increased slightly to 78.68 days in Q4 2023, indicating a longer collection period for accounts receivable. This may suggest a need for improvement in the company's credit policies or collection procedures to accelerate cash inflows.

3. Number of Days of Payables:
- Autoliv Inc. has been extending its payables period, with the number of days of payables increasing to 83.43 days in Q4 2023. This suggests that the company is taking longer to pay its suppliers, which can benefit cash flow in the short term but may strain supplier relationships if not managed effectively.

Overall, Autoliv Inc. has shown improvements in inventory management but may need to focus on reducing accounts receivable collection periods and maintaining a balance in managing payables effectively.

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 4.73 4.81 4.72 4.46 4.51 4.84 4.56 4.41 4.42 4.73 4.78 4.30 3.96 3.97 4.03 4.67 4.68 4.86 4.82 5.00
Total asset turnover 1.24 1.24 1.21 1.11 1.15 1.18 1.17 1.05 1.09 1.14 1.15 0.95 0.91 0.90 0.98 1.17 1.25 1.29 1.25 1.26

Autoliv Inc.'s fixed asset turnover ratio has shown relatively stable performance over the past eight quarters, ranging from 4.38 to 4.87. This indicates that the company generates between $4.38 to $4.87 in sales for every dollar invested in fixed assets. The consistent high values of the fixed asset turnover ratio suggest that Autoliv efficiently utilizes its fixed assets to generate revenue.

On the other hand, Autoliv's total asset turnover ratio has also displayed a steady trend, albeit with some fluctuations. The ratio has ranged from 1.04 to 1.26 over the same period. This indicates that Autoliv generates between $1.04 to $1.26 in revenue for every dollar invested in total assets. The company's ability to maintain a total asset turnover ratio above 1 signifies that it efficiently utilizes its overall assets to generate sales revenue.

Overall, Autoliv Inc. appears to be effectively managing its assets, both fixed and total, to generate revenue, as evidenced by its consistent and relatively high asset turnover ratios over the past eight quarters.