Astec Industries Inc (ASTE)
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 | 2.31 | 2.08 | 2.15 | 2.03 | 2.21 | 2.30 | 2.45 | 2.49 | 2.57 | 2.39 | 2.43 | 2.42 | 2.79 | 2.88 | 3.07 | 3.21 | 3.14 | 3.25 | 3.32 | 3.02 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 2.89 | 2.91 | 2.79 | 2.80 | 3.18 | 2.91 | 3.31 | 3.26 | 3.02 | 3.26 | 2.95 | 2.63 | 2.63 | 2.47 | 2.42 | 2.51 | 2.59 | 2.87 | 2.83 | 3.10 |
Astec Industries Inc's inventory turnover ratio has shown a slight decline over the years, from 3.02 in March 2020 to 2.31 in December 2024. This indicates that the company is taking longer to sell its inventory, which could suggest potential issues with managing inventory levels or demand for its products.
The receivables turnover ratio and payables turnover ratio are not available in the provided data, which limits the analysis of the company's efficiency in collecting receivables and paying its suppliers.
The working capital turnover ratio fluctuated over the years, ranging from 2.42 in June 2021 to 3.31 in June 2023. A higher working capital turnover ratio generally indicates that the company is efficiently using its working capital to generate sales.
Overall, Astec Industries Inc should focus on improving its inventory turnover to ensure optimal inventory management and operational efficiency. Additionally, monitoring and managing its working capital effectively will be crucial for sustaining business 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 | 157.93 | 175.70 | 169.96 | 180.10 | 165.07 | 158.39 | 148.81 | 146.87 | 142.11 | 152.88 | 150.28 | 150.71 | 130.80 | 126.87 | 118.99 | 113.60 | 116.32 | 112.25 | 110.01 | 121.05 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
### Analysis of Astec Industries Inc Activity Ratios
Days of Inventory on Hand (DOH):
- Astec Industries Inc's Days of Inventory on Hand has been fluctuating over the past few years, ranging from 110.01 days to 180.10 days.
- The trend shows an increasing pattern since March 31, 2020. The company seems to be holding inventory for a longer period, which may indicate slower inventory turnover.
- The latest data as of December 31, 2024, shows a DOH of 157.93 days, which is relatively high and requires attention to manage inventory levels efficiently.
Days of Sales Outstanding (DSO):
- The data provided does not include Days of Sales Outstanding (DSO) figures, which are essential for evaluating the efficiency of the company in collecting receivables from customers.
- Without DSO data, it is challenging to assess Astec Industries Inc's effectiveness in managing accounts receivable and its impact on cash flows.
Number of Days of Payables:
- Similar to DSO, the information regarding the Number of Days of Payables is not available in the dataset.
- Days Payable Outstanding is crucial for understanding how long the company takes to pay its suppliers, which is a vital aspect of working capital management.
Overall Assessment:
- Astec Industries Inc's activity ratios, particularly DOH, indicate potential inefficiencies in inventory management that may lead to higher holding costs and reduced liquidity.
- More comprehensive data on DSO and Payables would provide a clearer picture of the company's working capital management and overall operational efficiency.
- It is recommended for the company to closely monitor its inventory levels, streamline receivables collection process, and manage payables effectively to improve its cash flow and operational performance.
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 | — | — | — | — | — | — | 7.56 | 7.53 | 7.34 | 7.28 | 7.05 | 6.73 | 6.18 | 6.38 | 6.08 | 6.01 | 5.93 | 5.85 | 6.15 | 6.11 |
| Total asset turnover | 1.25 | 1.20 | 1.17 | 1.16 | 1.26 | 1.26 | 1.35 | 1.32 | 1.26 | 1.26 | 1.20 | 1.17 | 1.20 | 1.17 | 1.14 | 1.17 | 1.21 | 1.30 | 1.38 | 1.41 |
Astec Industries Inc's fixed asset turnover has shown an upward trend over the years, increasing from 6.11 in March 2020 to 7.34 in December 2022. This indicates that the company is generating more revenue for each dollar invested in fixed assets, reflecting operational efficiency in utilizing its long-term assets to generate sales.
In contrast, the total asset turnover ratio has fluctuated over the period, with a decrease observed in the first half of the analysis but showing some recovery in the later years. The ratio decreased from 1.41 in March 2020 to 1.14 in June 2021 but then improved gradually to reach 1.35 by June 2023 before declining again.
Overall, while the fixed asset turnover ratio demonstrates consistent improvement, indicating efficient utilization of fixed assets, the total asset turnover ratio shows some variability in how effectively the company is generating sales from all its assets. Astec Industries Inc may need to further evaluate its asset utilization strategies to ensure long-term efficiency in generating revenue relative to its total asset base.