Amentum Holdings Inc. (AMTM)

Short-term

Turnover ratios

Based on the provided data for Amentum Holdings Inc., let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio is not available for the years ending December 31, 2022 and December 31, 2023, as indicated by "—".
- As of September 30, 2024, the inventory turnover ratio is not available as well.

2. Receivables Turnover:
- The receivables turnover ratio is not available for the years ending December 31, 2022 and December 31, 2023, as indicated by "—".
- As of September 30, 2024, the receivables turnover ratio is 3.47. This suggests that Amentum Holdings Inc. collected its accounts receivables approximately 3.47 times during the specified period.

3. Payables Turnover:
- The payables turnover ratio is not available for the years ending December 31, 2022 and December 31, 2023, as indicated by "—".
- As of September 30, 2024, the payables turnover ratio is 10.70. This indicates that the company paid its accounts payables approximately 10.70 times during the stated period.

4. Working Capital Turnover:
- For the period ending December 31, 2022, the working capital turnover ratio was 8.02.
- By the year ending December 31, 2023, this ratio increased to 8.64.
- For the most recent period, ending September 30, 2024, the working capital turnover ratio decreased to 7.46. This ratio measures how efficiently the company is using its working capital to generate sales revenue.

Overall, the analysis of the activity ratios provides insights into how effectively Amentum Holdings Inc. manages its inventory, receivables, payables, and working capital to support its operational activities and financial performance.

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Average number of days

Amentum Holdings Inc.'s activity ratios provide insight into how efficiently the company manages its inventory, collects receivables from customers, and pays its suppliers.

- Days of Inventory on Hand (DOH): The information provided does not include specific values for this ratio for the reported periods. However, a lower DOH generally indicates that the company is efficiently managing its inventory levels and selling products quickly, which can positively impact cash flow and profitability.

- Days of Sales Outstanding (DSO): As of September 30, 2024, Amentum Holdings Inc. had a DSO of 105.04 days. This indicates that, on average, it takes the company approximately 105 days to collect payment from its customers following a sale. A higher DSO may suggest slower collections, which can tie up cash flow and potentially increase credit risk.

- Number of Days of Payables: On September 30, 2024, Amentum Holdings Inc. had a payable turnover period of 34.13 days. This ratio reflects how long it takes the company to pay its suppliers. A lower number of days of payables suggests the company takes less time to settle its payables, potentially indicating strong supplier relationships or efficient cash management practices.

By analyzing these activity ratios, stakeholders can gain insights into Amentum Holdings Inc.'s operational efficiency, liquidity, and working capital management strategies.

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Long-term

Amentum Holdings Inc.'s long-term activity ratios provide insight into how efficiently the company is utilizing its assets over time.

1. Fixed Asset Turnover:
- As per the data provided, the fixed asset turnover ratio for Amentum Holdings Inc. was not available for the years ending December 31, 2022 and 2023, suggesting insufficient information concerning how effectively the company generated sales from its fixed assets in those periods.
- However, as of September 30, 2024, the fixed asset turnover ratio improved significantly to 57.94, indicating that the company generated approximately $57.94 in sales revenue for every dollar invested in fixed assets. This substantial increase suggests a drastic improvement in utilizing fixed assets efficiently to generate sales.

2. Total Asset Turnover:
- The total asset turnover ratio reflects how efficiently the company generates sales revenue from its total assets, including both fixed and current assets.
- Amentum Holdings Inc.'s total asset turnover ratio was 1.23 and 1.33 for the years ending December 31, 2022 and 2023, respectively, indicating that the company generated $1.23 and $1.33 in sales for every dollar invested in total assets during those periods.
- However, as of September 30, 2024, the total asset turnover ratio dropped significantly to 0.70. This decline suggests that, in the most recent period, the company generated only $0.70 in sales for every dollar invested in total assets. This may indicate a decrease in the efficiency of asset utilization in generating sales.

Overall, the analysis of Amentum Holdings Inc.'s long-term activity ratios reveals both positive and negative trends in asset utilization efficiency over time. The notable increase in fixed asset turnover as of September 30, 2024, signals improved efficiency in generating sales from fixed assets, while the decrease in total asset turnover in the same period may raise concerns about the overall efficiency of asset utilization.