Smith AO Corporation (AOS)

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 5.89 5.70 5.84 5.97 6.29 5.93 5.99 6.13 6.02 6.03 6.49 6.37 6.57 7.85 8.11 8.14 8.23 8.01 7.90 7.92
Receivables turnover 7.05 6.97 6.04 6.60 6.44 6.45 6.32 6.36 6.44 6.75 6.19 6.15 5.57 5.41 5.30 5.65 4.94 4.90 5.37 5.48
Payables turnover 5.32 5.69 5.53 5.59 5.21 5.48 5.59 5.61 4.97 5.32 5.12 4.72 3.94 4.32 4.37 4.65 4.15 4.69 5.55 5.60
Working capital turnover 7.70 6.85 6.44 6.67 6.92 6.22 5.31 4.99 5.35 5.69 5.47 5.20 5.58 4.47 4.74 4.19 3.95 4.49 3.91 3.86

Smith AO Corporation's inventory turnover ratio has shown a slight decline over the past few years, decreasing from 8.23 in December 2020 to 5.89 in December 2024. This could indicate that the company is taking longer to sell its inventory, which may lead to potential issues with obsolete or slow-moving inventory.

On the other hand, the receivables turnover ratio has generally improved, with a steady increase from 4.94 in December 2020 to 7.05 in December 2024. This suggests that the company is collecting its accounts receivable more efficiently over time, which is a positive indication of effective credit and collection policies.

In terms of payables turnover, the ratio has fluctuated but remained relatively stable from 4.15 in December 2020 to 5.32 in December 2024. This could imply that the company is managing its payments to suppliers consistently, without significant changes in its payment practices.

Furthermore, Smith AO Corporation's working capital turnover ratio has shown a consistent upward trend, rising from 3.86 in March 2020 to 7.70 in December 2024. This indicates that the company is utilizing its working capital more effectively to generate sales revenue, which is a favorable sign of operational efficiency and capital management.

Overall, while there are areas for improvement in inventory turnover, the increasing efficiency in receivables turnover and the stable payables turnover, coupled with the positive trend in working capital turnover, suggest that Smith AO Corporation is effectively managing its working capital and operational activities for continued growth and profitability.

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 62.02 64.01 62.55 61.14 58.06 61.57 60.95 59.55 60.65 60.51 56.28 57.34 55.55 46.52 45.03 44.86 44.35 45.54 46.20 46.07
Days of sales outstanding (DSO) days 51.77 52.35 60.45 55.33 56.64 56.62 57.73 57.41 56.65 54.11 58.96 59.32 65.51 67.46 68.81 64.55 73.91 74.54 67.93 66.58
Number of days of payables days 68.62 64.13 65.99 65.29 70.09 66.64 65.33 65.07 73.49 68.57 71.29 77.29 92.55 84.49 83.46 78.50 87.97 77.80 65.78 65.20

Based on the provided data, the Days of Inventory on Hand (DOH) for Smith AO Corporation has experienced fluctuations over the years. The company started with around 46 days of inventory on hand in March 2020, slightly increased to 60 days by December 2022, and then decreased to 62 days by December 2024.

The Days of Sales Outstanding (DSO), representing how long it takes for the company to collect its accounts receivable, showed a varying trend as well. The DSO decreased from 67 days in June 2020 to around 52 days by December 2024, indicating an improvement in the efficiency of the company in collecting its sales proceeds.

In terms of the Number of Days of Payables, which measures how long the company takes to pay its suppliers, the company seems to have been managing this aspect relatively well. The payables days ranged from around 65 days in March 2020 to approximately 68 days by December 2024.

Overall, it is essential for Smith AO Corporation to closely monitor and manage these activity ratios to ensure efficient inventory management, timely collection of receivables, and effective management of payables to maintain a healthy cash flow and operational 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 6.07 6.23 6.51 6.44 6.43 6.52 6.45 6.37 6.34 6.52 6.49 6.21 5.83 6.26 5.97 5.61 5.34 5.22 5.19 5.35
Total asset turnover 1.18 1.23 1.23 1.21 1.20 1.18 1.15 1.12 1.12 1.18 1.16 1.09 1.02 1.02 1.03 0.97 0.91 0.94 0.93 0.96

The Fixed Asset Turnover ratio for Smith AO Corporation has shown a consistent upward trend over the past few years, increasing from 5.35 in March 2020 to 6.07 in December 2024. This indicates that the company is generating more revenue relative to its fixed assets, which is a positive sign of efficiency in utilizing its long-term assets to generate sales.

In contrast, the Total Asset Turnover ratio started at 0.96 in March 2020 and fluctuated before steadily increasing to 1.18 in September 2023. Although there was a slight decrease to 1.18 by the end of 2024, overall, the ratio has shown improvement, indicating that the company is effectively generating revenue from all its assets.

The increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios suggests that Smith AO Corporation has been able to improve its efficiency in utilizing both fixed and total assets to generate sales over the years. This trend is generally positive as it implies that the company is managing its assets effectively to maximize revenue generation.