Aptiv PLC (APTV)
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 | 7.75 | 7.07 | 7.73 | 7.79 | 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 |
| Receivables turnover | 5.54 | 5.01 | 5.15 | 5.14 | 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 |
| Payables turnover | 6.27 | 6.03 | 6.29 | 6.38 | 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 |
| Working capital turnover | 7.31 | 6.84 | 6.84 | 11.60 | 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 |
Aptiv PLC's inventory turnover has been relatively stable over the past few years, ranging between 6.45 to 8.63 times a year. This shows that the company is efficient in managing its inventory levels and converting them into sales.
In terms of receivables turnover, Aptiv's performance has also been consistent, with the ratio fluctuating between 4.26 to 5.54 times per year. This indicates that the company is effective in collecting payments from its customers in a timely manner.
The payables turnover ratio for Aptiv has shown a gradual increase over the years, ranging from 4.33 to 6.38 times per year. This improvement suggests that the company is taking longer to pay its suppliers, which may indicate good negotiation power or cash flow management.
Aptiv's working capital turnover has shown some variability, with values ranging between 2.38 to 11.60 times per year. A higher turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue, which can be seen in the significant improvement in this ratio in recent periods.
Overall, Aptiv PLC's activity ratios reflect effective management of inventory, receivables, payables, and working capital, indicating operational efficiency and effective utilization of its resources to drive sales 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 | 47.09 | 51.61 | 47.19 | 46.86 | 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 |
| Days of sales outstanding (DSO) | days | 65.86 | 72.83 | 70.92 | 71.06 | 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 |
| Number of days of payables | days | 58.25 | 60.49 | 58.05 | 57.18 | 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 |
Aptiv PLC's activity ratios exhibit fluctuations over the years.
1. Days of Inventory on Hand (DOH):
- The average number of days it takes for Aptiv to sell its inventory increased from 42.28 days in June 2020 to a peak of 56.58 days in March 2022.
- However, there was a slight decrease to 46.86 days in March 2024, indicating a possible improvement in inventory management efficiency towards the end of the period.
2. Days of Sales Outstanding (DSO):
- Aptiv's DSO, measuring the average number of days it takes to collect revenue after a sale, ranged from 61.84 days in June 2020 to 76.37 days in March 2023.
- There was a notable decline to 65.86 days by December 2024, suggesting a potential improvement in the company's accounts receivable collection process.
3. Number of Days of Payables:
- The average number of days Aptiv took to pay its suppliers varied between 49.96 days in June 2020 to 78.85 days in March 2021.
- The trend then showed a general decline, with the number of days decreasing to 58.25 days by December 2024, potentially indicating a more efficient payables management approach.
Overall, fluctuations in these activity ratios suggest changes in Aptiv's operational efficiency and effectiveness in managing its inventory, accounts receivable, and accounts payable over the analyzed period.
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 | 5.33 | 5.19 | 5.36 | 5.35 | 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 |
| Total asset turnover | 0.84 | 0.80 | 0.81 | 0.85 | 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 |
Aptiv PLC's long-term activity ratios indicate the efficiency of the company in managing its fixed and total assets over time.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company generates revenue from its fixed assets.
- Aptiv PLC's fixed asset turnover has shown a generally increasing trend from March 31, 2020, to December 31, 2024, with some fluctuations in between.
- It increased from 4.31 on March 31, 2020, to 5.33 on December 31, 2024, peaking at 5.52 on September 30, 2023.
- The rising trend signifies that the company has been able to generate more revenue per dollar invested in fixed assets, indicating improved efficiency in asset utilization.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently the company uses its total assets to generate sales.
- Aptiv PLC's total asset turnover experienced fluctuations during the period, with a slight overall decline from 0.87 on March 31, 2020, to 0.84 on December 31, 2024.
- Though there were fluctuations, the ratio generally remained within a narrow range, indicating relatively stable efficiency in utilizing total assets to generate sales over time.
In conclusion, Aptiv PLC has shown improved efficiency in generating revenue from its fixed assets, as evidenced by the rising trend in fixed asset turnover. Despite some fluctuations, the company maintained stable efficiency in utilizing total assets to generate sales, as indicated by the total asset turnover ratio.