Amentum Holdings Inc. (AMTM)

Short-term

Turnover ratios

Based on the provided data for Amentum Holdings Inc., the activity ratios can be analyzed as follows:

1. Inventory Turnover: The inventory turnover ratio indicates how efficiently the company manages its inventory. Amentum Holdings Inc. did not provide data for inventory turnover for December 31, 2021, December 31, 2022, September 30, 2024, and December 31, 2024. However, on December 31, 2023, the inventory turnover ratio was exceptionally high at 59,521.01, suggesting that the company efficiently turned over its inventory during that period.

2. Receivables Turnover: The receivables turnover ratio reflects how efficiently the company collects on its credit sales. Amentum Holdings Inc. did not provide data for receivables turnover for December 31, 2021, December 31, 2022, December 31, 2024. On September 30, 2024, the receivables turnover was 3.47, indicating that the company collected its receivables approximately 3.47 times during that period.

3. Payables Turnover: The payables turnover ratio measures how quickly the company pays its suppliers. There is no data available for payables turnover for December 31, 2021, December 31, 2022, December 31, 2023, and December 31, 2024. However, on September 30, 2024, the payables turnover was 10.70, suggesting that the company paid its suppliers approximately 10.70 times during that period.

4. Working Capital Turnover: The working capital turnover ratio evaluates how effectively the company utilizes its working capital to generate revenue. Amentum Holdings Inc. did not provide data for working capital turnover for December 31, 2021. The data indicates an increase in the working capital turnover from December 31, 2022 (11.88) to December 31, 2023 (14.17), followed by a slight decrease by September 30, 2024 (7.46) and a relatively stable ratio on December 31, 2024 (7.50).

In conclusion, while Amentum Holdings Inc. has shown high efficiency in managing inventory during December 31, 2023, further data on payables turnover, receivables turnover, and working capital turnover for other periods is needed to provide a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Based on the provided data for Amentum Holdings Inc., we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- As of December 31, 2023, Amentum Holdings had 0.01 days of inventory on hand, indicating a very efficient inventory management, possibly reflecting just-in-time inventory practices.
- The data for other periods is not available, so it is difficult to assess the trend in inventory management over time.

2. Days of Sales Outstanding (DSO):
- As of September 30, 2024, Amentum Holdings had 105.04 days of sales outstanding, which suggests that the company takes an average of 105 days to collect its accounts receivable.
- The data for other periods is not available, so it is unclear how the DSO trend has evolved over time. A higher DSO may indicate inefficiencies in credit management or a more lenient credit policy.

3. Number of Days of Payables:
- As of September 30, 2024, Amentum Holdings had 34.13 days of payables, indicating that the company takes approximately 34 days to pay its suppliers.
- The data for other periods is not available, making it challenging to analyze the trend in payables management.

Overall, based on the limited data provided, Amentum Holdings Inc. appears to have efficient inventory management and accounts payable practices, but the days of sales outstanding could potentially be improved to enhance cash flow and working capital management. Further data on these ratios over multiple periods would provide a clearer picture of the company's performance in managing its operating cycle.

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Long-term

Long-term activity ratios such as Fixed Asset Turnover and Total Asset Turnover provide insights into how efficiently a company is utilizing its assets to generate revenues.

In the case of Amentum Holdings Inc., the Fixed Asset Turnover ratio was not available for the periods ending December 31, 2021, 2022, and 2023, indicating a lack of data or potentially changes in reporting practices. However, for the period ending September 30, 2024, the Fixed Asset Turnover ratio was 57.94, suggesting that the company generated $57.94 in revenue for every dollar invested in fixed assets. This high ratio could indicate efficient utilization of fixed assets to generate sales.

The Total Asset Turnover ratio, on the other hand, provides a broader view of how well the company is using all its assets to generate sales. The ratio decreased from 1.82 in December 31, 2022, to 0.70 in September 30, 2024, and remained the same at 0.70 at the end of December 31, 2024. This decline indicates a decrease in the company's ability to generate sales from its total assets over the period.

Overall, while the Fixed Asset Turnover ratio for September 30, 2024, indicates efficient utilization of fixed assets, the decreasing trend in the Total Asset Turnover ratio may suggest challenges in leveraging all assets effectively to generate revenues. Further analysis and comparison with industry peers would provide a more holistic understanding of Amentum Holdings Inc.'s long-term activity performance.