Aptiv PLC (APTV)

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 7.80 7.51 7.45 6.80 6.98 6.96 6.50 6.45 7.24 6.83 7.71 7.96 8.58 8.63 8.63 8.42 9.11 8.75 8.99 8.84
Receivables turnover 5.26 5.12 4.84 4.78 4.79 4.71 4.85 4.76 5.15 5.31 5.37 4.55 4.33 4.26 5.90 5.46 5.07 4.91 4.80 4.78
Payables turnover 5.85 5.98 5.86 5.64 5.19 5.79 5.58 5.13 4.94 5.69 5.40 4.63 4.33 4.85 7.31 5.12 4.75 5.27 5.13 5.01
Working capital turnover 5.83 5.21 5.53 5.64 5.99 2.48 2.45 2.38 3.69 3.68 3.79 3.61 3.82 4.14 4.83 5.53 11.35 9.53 16.60 17.86

Aptiv PLC's inventory turnover ratio has consistently remained above 6x over the past eight quarters, indicating that the company efficiently manages its inventory levels and swiftly converts inventory into sales. This trend suggests effective inventory management practices, which could help reduce holding costs and minimize obsolete inventory risks.

The receivables turnover ratio has shown stability around 4.8x to 5.3x, displaying Aptiv's ability to collect its accounts receivable in a timely manner. This suggests that the company has efficient credit and collection policies in place, helping to maintain healthy cash flows.

The payables turnover ratio has varied around 4.6x to 5.4x, demonstrating Aptiv's management of its trade payables. A higher ratio indicates that the company is taking longer to pay its suppliers, potentially benefiting from trade credit terms and improving its working capital position.

Aptiv's working capital turnover ratio has shown significant fluctuations, ranging from approximately 2.4x to 6x over the last eight quarters. A higher ratio reflects the efficient utilization of working capital to generate revenue, while a lower ratio may suggest inefficiencies in working capital management.

Overall, Aptiv PLC's activity ratios indicate efficient management of inventory, receivables, payables, and working capital, reflecting the company's ability to effectively utilize its resources to drive operational performance and financial health.

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 46.82 48.59 48.97 53.68 52.26 52.42 56.18 56.58 50.42 53.45 47.33 45.83 42.55 42.31 42.28 43.36 40.08 41.71 40.61 41.29
Days of sales outstanding (DSO) days 69.45 71.33 75.36 76.37 76.13 77.50 75.26 76.67 70.86 68.69 68.03 80.25 84.25 85.61 61.84 66.89 71.92 74.41 75.99 76.35
Number of days of payables days 62.38 61.06 62.31 64.72 70.36 63.08 65.38 71.22 73.93 64.18 67.64 78.85 84.34 75.26 49.96 71.35 76.77 69.22 71.13 72.87

Aptiv PLC's activity ratios indicate the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH): The average number of days Aptiv holds inventory decreased from 57.77 days in Q3 2022 to 51.96 days in Q4 2023, signaling an improvement in inventory management efficiency, possibly through better demand forecasting or inventory controls.

2. Days of Sales Outstanding (DSO): The average number of days it takes Aptiv to collect payment from its customers decreased from 77.50 days in Q3 2022 to 69.45 days in Q4 2023. This improvement suggests a more effective credit and collection policy or better customer creditworthiness evaluation.

3. Number of Days of Payables: Aptiv's average number of days it takes to pay its suppliers decreased from 69.52 days in Q3 2022 to 69.23 days in Q4 2023. This decrease could be due to renegotiated payment terms with suppliers, improved cash flow management, or strategic use of trade credit.

Overall, the trend of decreasing DOH, DSO, and days of payables indicates that Aptiv PLC is managing its working capital effectively, potentially leading to improved cash flow and overall financial performance.

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 5.30 5.52 5.37 5.11 5.00 5.38 4.99 4.80 4.74 4.92 4.92 4.38 3.96 3.86 3.86 4.31 4.34 4.58 4.41 4.47
Total asset turnover 0.82 0.83 0.87 0.83 0.80 0.85 0.80 0.77 0.87 0.89 0.88 0.79 0.75 0.76 0.81 0.87 1.07 1.11 1.09 1.10

Aptiv PLC's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into how efficiently the company is utilizing its assets to generate sales.

The fixed asset turnover ratio indicates how well the company is using its fixed assets, such as property, plant, and equipment, to generate revenue. Aptiv PLC's fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 4.80 to 5.52. This suggests that Aptiv is effectively utilizing its fixed assets to generate sales, with a higher ratio indicating a more efficient use of these assets.

On the other hand, the total asset turnover ratio considers all assets, both fixed and current, in relation to sales. Aptiv PLC's total asset turnover ratio has also been fairly consistent, varying between 0.77 and 0.87 over the same period. A higher total asset turnover ratio indicates that the company is generating more sales relative to its total assets, which can be a sign of efficiency in asset utilization.

Overall, Aptiv PLC's long-term activity ratios show a stable trend in asset turnover, both in terms of fixed assets and total assets. The consistent performance in these ratios suggests that the company is effectively managing and utilizing its assets to generate revenue.