AdvanSix Inc (ASIX)

Short-term

Turnover ratios

AdvanSix Inc's inventory turnover ratio has shown fluctuations over the years, starting at 5.69 in 2020 and reaching a peak of 9.43 in 2021 before slightly decreasing to 6.43 in 2024. This indicates that the company has been able to manage its inventory efficiently, selling its inventory multiple times within each year.

On the other hand, the receivables turnover ratio data is not available, suggesting that the company may not have provided credit sales for evaluation in the given periods.

Similarly, the payables turnover ratio data is also unavailable, making it difficult to assess how quickly the company pays its suppliers.

The working capital turnover ratio has shown variability, with a significant increase from 24.92 in 2020 to 50.56 in 2024. This indicates that AdvanSix Inc has been utilizing its working capital effectively to generate revenue, demonstrating a strong ability to convert working capital into sales.

In summary, based on the data provided, AdvanSix Inc seems to have managed its inventory efficiently and effectively utilized its working capital for revenue generation. However, further information on receivables and payables turnover ratios would provide a more comprehensive understanding of the company's overall efficiency in managing its assets and liabilities.

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Average number of days

AdvanSix Inc's Days of Inventory on Hand (DOH) decreased from 64.18 days as of December 31, 2020, to 38.70 days as of December 31, 2021, before increasing slightly to 48.22 days by the end of 2022. Subsequently, the DOH rose to 56.50 days as of December 31, 2023, and further to 56.81 days by December 31, 2024. The fluctuations in the DOH indicate changes in the efficiency of managing inventory levels over the years.

Regarding Days of Sales Outstanding (DSO), the data provided indicates that there were no specific values mentioned for any of the years, implying that there is no available information to calculate this ratio. DSO is crucial for measuring the efficiency of collecting receivables, but unfortunately, this information is not provided in the dataset.

Similarly, the dataset does not provide specific values for the Number of Days of Payables for any of the years. Therefore, an analysis of this activity ratio, which measures the time it takes for a company to pay its suppliers, cannot be conducted with the available data.

In summary, while the information on the Days of Inventory on Hand is available and shows fluctuations over the years, the data for Days of Sales Outstanding and Number of Days of Payables is missing, limiting a comprehensive analysis of AdvanSix Inc's activity ratios. It is important to consider all three activity ratios together to assess the overall effectiveness of the company's working capital management.

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Long-term

The fixed asset turnover ratio reflects how efficiently a company utilizes its fixed assets to generate sales. From the data provided, we observe an increasing trend in AdvanSix Inc's fixed asset turnover ratio over the years. The ratio has improved from 1.51 in 2020 to 2.10 in 2022. This indicates that AdvanSix is utilizing its fixed assets more effectively to generate revenue.

On the other hand, the total asset turnover ratio measures how efficiently a company uses its total assets to generate sales. AdvanSix's total asset turnover ratio has been fluctuating over the years, with a peak of 1.30 in 2022 and a decrease to 0.95 in 2024. This suggests that the company's ability to generate revenue from its total assets fluctuated, potentially due to changes in the company's sales volume or asset base.

Overall, while the fixed asset turnover ratio of AdvanSix Inc shows a positive trend of improvement, the fluctuations in the total asset turnover ratio may warrant further investigation into the company's operational efficiency and asset management strategies.