AdvanSix Inc (ASIX)

Short-term

Turnover ratios

The activity ratios of AdvanSix Inc provide insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. AdvanSix's inventory turnover has shown fluctuations over the years, ranging from a low of 5.69 to a high of 10.51. A higher turnover indicates efficient management of inventory, with the company selling products quickly.

2. Receivables Turnover: The receivables turnover ratio gauges how efficiently a company is collecting on its credit sales. In this case, data is not available for AdvanSix Inc, which may suggest that the company's use of credit sales is limited or that the reporting may not fully capture this metric.

3. Payables Turnover: The payables turnover ratio evaluates how effectively a company manages its accounts payable. Similarly to receivables turnover, data is not provided for AdvanSix Inc, so it is unclear how efficiently the company is managing its payables.

4. Working Capital Turnover: This ratio reflects how efficiently a company utilizes its working capital to generate sales. AdvanSix's working capital turnover has varied significantly, ranging from 9.49 to 59.42. A higher turnover typically indicates effective utilization of working capital to drive sales.

In conclusion, while AdvanSix's inventory turnover and working capital turnover ratios show notable fluctuations, the lack of data for receivables and payables turnover limits a full assessment of the company's operational efficiency in these areas. It is important for AdvanSix to monitor and manage these ratios to ensure optimal performance and competitiveness in the industry.

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Average number of days

The Days of Inventory on Hand (DOH) ratio measures how many days, on average, a company holds its inventory before selling it. Lower DOH values indicate faster inventory turnover, which is generally preferred as it suggests efficient management of inventory levels.

Analyzing the DOH for AdvanSix Inc over the past few years shows fluctuations in inventory management. In the most recent period of December 31, 2024, the company had a DOH of 56.81 days, indicating an increase compared to the previous quarter. However, it is important to note that this metric improved in the preceding quarter to 55.23 days.

Overall, it appears that AdvanSix Inc has been working towards improving its inventory turnover, with some variability in performance. Ensuring a balance between carrying enough inventory to meet demand while avoiding excess stock that ties up capital will be crucial for the company moving forward.

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Long-term

AdvanSix Inc's fixed asset turnover ratio has shown a generally increasing trend from March 31, 2020, to June 30, 2022, indicating the company's ability to generate revenue from its fixed assets. The ratio peaked at 2.12 on September 30, 2022, before slightly decreasing in the subsequent periods. The significant improvement in the fixed asset turnover ratio over the years suggests an efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio fluctuated within a range from 0.91 to 1.35 during the period from June 30, 2020, to September 30, 2022. The ratio experienced some ups and downs, indicating varying levels of efficiency in generating sales from total assets. Overall, the trend shows that AdvanSix Inc has been able to effectively use its total assets to generate revenue, with some fluctuations in performance.

Analyzing both ratios together provides a comprehensive view of AdvanSix Inc's long-term activity efficiency. The increasing trend in fixed asset turnover coupled with some fluctuations in total asset turnover highlights the company's overall ability to effectively utilize its assets to generate sales. This indicates a sound operational performance in terms of asset management and revenue generation over the analyzed period.