Allegheny Technologies Incorporated (ATI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.56 | 5.40 | 2.61 | 2.36 | 2.70 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.51 | 4.29 | 2.54 | 1.93 | 2.11 |
Allegheny Technologies Incorporated's inventory turnover has fluctuated over the years. It was 2.70 in 2020, decreased to 2.36 in 2021, increased to 2.61 in 2022, spiked to 5.40 in 2023, and then dropped back to 2.56 in 2024. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times a year the inventory is sold and replaced.
The company's receivables turnover data is not available for the years provided, indicating that specific information on how quickly Allegheny Technologies collects its receivables is not present, making it difficult to assess the efficiency of the company in collecting payments from its customers.
Similarly, the payables turnover data is not provided, indicating the lack of information regarding how quickly the company is paying its suppliers. This ratio is important as it reflects the efficiency of the company in managing its accounts payable.
The working capital turnover for Allegheny Technologies Incorporated has shown variation as well, with figures of 2.11 in 2020, 1.93 in 2021, 2.54 in 2022, a significant increase to 4.29 in 2023, and then a decrease to 2.51 in 2024. The working capital turnover ratio measures how effectively the company is utilizing its working capital to generate sales.
In summary, while the company's management of inventory has shown some fluctuations, the lack of data on receivables and payables turnover limits a comprehensive analysis of the company's efficiency in managing its working capital. These ratios collectively provide insights into the operational efficiency and liquidity management of Allegheny Technologies Incorporated.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 142.57 | 67.54 | 139.80 | 154.83 | 135.33 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Activity ratios provide insights into how efficiently a company manages its assets and operations. Let's analyze Allegheny Technologies Incorporated's activity ratios based on the provided data:
1. Days of Inventory on Hand (DOH):
- December 31, 2020: 135.33 days
- December 31, 2021: 154.83 days
- December 31, 2022: 139.80 days
- December 31, 2023: 67.54 days
- December 31, 2024: 142.57 days
The DOH measures how many days a company takes to turn its inventory into sales. A lower DOH is generally better as it indicates faster inventory turnover. In this case, Allegheny Technologies Incorporated saw fluctuations in its DOH over the years, with a significant decrease in 2023, suggesting improved inventory management efficiency that year.
2. Days of Sales Outstanding (DSO):
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided
DSO measures the average number of days it takes for a company to collect its accounts receivable. Since data for DSO is not provided, we cannot evaluate how efficiently Allegheny Technologies manages its accounts receivable turnover.
3. Number of Days of Payables:
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided
The number of days of payables indicates how long a company takes to pay its suppliers. Absence of data for this ratio makes it challenging to assess Allegheny Technologies' payment practices towards its vendors.
In conclusion, based on the available data, Allegheny Technologies Incorporated has shown improvements in managing its inventory turnover in 2023. However, a lack of information on the days of sales outstanding and number of days of payables limits a comprehensive analysis of the company's overall efficiency in managing its working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 2.48 | 1.83 | 2.03 |
| Total asset turnover | 0.83 | 1.51 | 0.86 | 0.65 | 0.74 |
The fixed asset turnover ratio of Allegheny Technologies Incorporated has fluctuated over the years, indicating the efficiency of the company in generating sales from its fixed assets. In 2020, the ratio was 2.03, which decreased to 1.83 by the end of 2021. However, there was a significant improvement in 2022, with the ratio increasing to 2.48. Unfortunately, the data for 2023 and 2024 are not available.
In contrast, the total asset turnover ratio reflects the company's ability to generate revenue in relation to its total assets. In 2020, the ratio was 0.74, which dropped to 0.65 by the end of 2021. However, there was a substantial increase in 2022, with the ratio rising to 0.86. The most notable improvement was seen in 2023, with a total asset turnover ratio of 1.51, indicating that the company was using its assets more efficiently to generate sales. The ratio declined in 2024 to 0.83.
Overall, while the fixed asset turnover ratio shows variability in utilizing fixed assets for revenue generation, the total asset turnover ratio indicates a more efficient use of total assets to generate sales over the years, with fluctuations in both ratios reflecting changes in the company's operations and business performance.