Allegheny Technologies Incorporated (ATI)

Short-term

Turnover ratios

The activity ratios of Allegheny Technologies Incorporated provide insights into the efficiency of the company's operations. Here is a detailed analysis:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. Over the periods analyzed, Allegheny Technologies' inventory turnover ranged from 2.12 to 4.06.
- A declining trend in inventory turnover from a high of 4.06 on December 31, 2023, to a low of 2.12 on March 31, 2022, may indicate potential issues with inventory management or slower sales.
- An increase in inventory turnover towards the end of the period may suggest improved inventory control or higher demand for the company's products.

2. Receivables Turnover:
- The lack of data for receivables turnover indicates that the company may not be effectively managing its accounts receivable. It is important to monitor this ratio to ensure timely collection of outstanding payments.

3. Payables Turnover:
- Similarly, the absence of data for payables turnover hinders the evaluation of the company's efficiency in managing trade payables. A higher payables turnover ratio generally indicates that the company takes longer to pay its creditors.

4. Working Capital Turnover:
- The working capital turnover ratio reflects how efficiently the company utilizes its working capital to generate revenue. Allegheny Technologies' working capital turnover ranged between 1.82 and 4.20 during the analyzed periods.
- The increasing trend in working capital turnover, reaching a peak of 4.20 on June 30, 2024, suggests that the company was effectively utilizing its working capital to support sales growth.
- A working capital turnover below 1 may indicate inefficient use of working capital resources, while a ratio above 1 signifies effective utilization.

In conclusion, while Allegheny Technologies' inventory turnover and working capital turnover ratios demonstrate fluctuations over the analyzed periods, the lack of data for receivables and payables turnovers limits a comprehensive assessment of the company's overall efficiency in managing its working capital and operating cycle.

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Average number of days

Based on the provided data on activity ratios for Allegheny Technologies Incorporated, we can analyze the Days of Inventory on Hand (DOH) metric over a period spanning from March 31, 2020, to December 31, 2024.

The DOH ratio reflects the number of days it takes for a company to sell its average inventory. In this case, Allegheny Technologies Inc. experienced fluctuations in its inventory management efficiency over the period analyzed.

The trend in DOH shows that the company's inventory turnover has varied significantly, ranging from a high of 171.90 days on March 31, 2022, to a low of 89.98 days on December 31, 2023.

Overall, the company appears to have improved its inventory turnover efficiency in recent quarters, with the DOH decreasing from 171.90 days on March 31, 2022, to 142.57 days on December 31, 2024. Despite the decline in DOH, it is important for Allegheny Technologies Inc. to continue monitoring and managing its inventory levels effectively to optimize cash flow and profitability.

Unfortunately, data on Days of Sales Outstanding (DSO) and Number of Days of Payables are not available for analysis.

In conclusion, based on the provided data, Allegheny Technologies Incorporated has shown fluctuations in its inventory turnover efficiency, with recent improvements observed. Monitoring and managing inventory levels effectively will be crucial for the company's financial performance going forward.

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Long-term

The fixed asset turnover ratio for Allegheny Technologies Incorporated has shown a positive trend over the years, indicating an improvement in the company's efficiency in generating revenue from its fixed assets. The ratio increased steadily from 1.67 in March 2020 to 2.48 in December 2022, further reaching 3.04 by September 2023, which suggests that the company is utilizing its fixed assets more effectively to generate sales.

In comparison, the total asset turnover ratio reflects the company's overall efficiency in generating sales from all its assets. Despite some fluctuations, the total asset turnover ratio generally increased from 0.70 in March 2020 to 1.20 by June 2024. This upward trend indicates that Allegheny Technologies has been able to generate more revenue for each dollar invested in its total assets over the years, showcasing improved efficiency in asset utilization.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that Allegheny Technologies Incorporated has been effectively utilizing its assets to generate sales and improve its operational performance over the years.