Allegheny Technologies Incorporated (ATI)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.01 | 2.71 | 2.68 | 2.80 | 2.87 | 2.66 | 2.32 | 2.29 | 2.53 | 1.86 | 1.83 | 2.25 | 2.59 | 3.35 | 3.43 | 3.14 | 3.26 | 3.26 | 3.13 | 2.98 |
| Receivables turnover | 6.68 | 5.88 | 5.67 | 5.43 | 6.41 | 5.01 | 4.95 | 4.95 | 5.63 | 5.39 | 7.09 | 6.37 | 8.57 | 8.51 | 7.84 | 6.98 | 7.56 | 7.09 | 7.16 | 7.21 |
| Payables turnover | 7.16 | 8.45 | 7.90 | 8.10 | 6.21 | 7.89 | 6.99 | 6.87 | 7.04 | 6.76 | 7.31 | 7.26 | 8.89 | 14.41 | 13.73 | 8.75 | 7.23 | 9.17 | 9.06 | 8.21 |
| Working capital turnover | 2.37 | 2.27 | 2.58 | 2.64 | 2.45 | 2.20 | 2.05 | 1.96 | 1.82 | 1.83 | 1.84 | 1.92 | 2.10 | 2.17 | 2.39 | 2.86 | 2.88 | 2.55 | 2.77 | 2.87 |
1. Inventory turnover: ATI Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 2.12 to 2.70. This ratio indicates that on average, the company sells and replenishes its inventory approximately 2 to 3 times a year. A higher inventory turnover is generally preferred as it signifies efficient inventory management and reduced carrying costs.
2. Receivables turnover: The receivables turnover ratio of ATI Inc has shown some variability, with the highest value of 6.68 in Q4 2023 and the lowest of 5.24 in Q2 2022. This ratio reflects how quickly the company collects cash from its credit sales, with a higher turnover indicating effective credit and collection policies.
3. Payables turnover: ATI Inc's payables turnover has also fluctuated, with values ranging from 5.64 to 7.67 over the last eight quarters. A higher payables turnover signifies that the company is paying off its suppliers quickly, which can potentially indicate strong supplier relations and negotiation power.
4. Working capital turnover: The working capital turnover ratio of ATI Inc has generally been steady, hovering around 2.00 to 2.70. This ratio measures how efficiently the company is using its working capital to generate sales. A higher turnover ratio suggests that ATI Inc is effectively utilizing its working capital to drive revenue generation.
Overall, analyzing ATI Inc's activity ratios provides insights into the company's operational efficiency in managing inventory, receivables, payables, and working capital. A consistent focus on improving these ratios can lead to enhanced financial performance and competitiveness in the market.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 121.12 | 134.47 | 136.41 | 130.32 | 126.98 | 137.17 | 157.23 | 159.40 | 144.41 | 196.09 | 199.04 | 162.18 | 140.81 | 108.98 | 106.37 | 116.08 | 111.90 | 111.91 | 116.59 | 122.44 |
| Days of sales outstanding (DSO) | days | 54.65 | 62.03 | 64.39 | 67.24 | 56.98 | 72.86 | 73.73 | 73.76 | 64.86 | 67.67 | 51.52 | 57.33 | 42.60 | 42.89 | 46.57 | 52.27 | 48.26 | 51.47 | 50.95 | 50.65 |
| Number of days of payables | days | 50.95 | 43.20 | 46.22 | 45.07 | 58.76 | 46.24 | 52.20 | 53.10 | 51.83 | 53.99 | 49.96 | 50.27 | 41.04 | 25.32 | 26.58 | 41.73 | 50.48 | 39.82 | 40.28 | 44.44 |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities. In the case of ATI Inc, let's analyze the activity ratios based on the data provided:
1. Days of Inventory on Hand (DOH):
- The trend for DOH is relatively stable in 2022 and 2023, indicating the company's ability to manage its inventory effectively.
- The decrease in DOH from Q2 2022 to Q1 2023 suggests that ATI Inc improved its inventory turnover efficiency.
- Overall, ATI Inc takes around 140-150 days on average to sell its inventory, which can be compared with industry benchmarks for further evaluation.
2. Days of Sales Outstanding (DSO):
- DSO measures how quickly a company collects its accounts receivable.
- ATI Inc's DSO decreased from Q2 2022 to Q1 2023, indicating a potential improvement in its receivables collection process.
- The company takes around 55-65 days on average to collect its receivables, showing a reasonable efficiency in converting sales to cash.
3. Number of Days of Payables:
- This ratio reflects how long a company takes to pay its suppliers.
- ATI Inc's payables days have fluctuated between Q1 2022 and Q4 2023, with a notable decrease between Q4 2022 and Q1 2023.
- The company typically takes around 47-65 days to settle its payables, highlighting its approach to managing payment terms with suppliers.
Overall, ATI Inc's activity ratios suggest a balanced approach to managing inventory, receivables, and payables, possibly leading to improved operational efficiency and liquidity management over the analyzed periods. Further benchmarking against industry peers can provide additional context on the company's performance in these areas.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 2.51 | 2.47 | 2.57 | 2.54 | 2.40 | 2.27 | 2.08 | 1.84 | 1.73 | 1.82 | 1.73 | 1.83 | 2.02 | 1.34 | 1.54 | 1.69 | 1.71 | 1.76 | 1.73 | 1.65 |
| Total asset turnover | 0.84 | 0.85 | 0.91 | 0.92 | 0.83 | 0.79 | 0.73 | 0.65 | 0.62 | 0.59 | 0.65 | 0.66 | 0.73 | 0.65 | 0.73 | 0.71 | 0.74 | 0.75 | 0.75 | 0.74 |
Long-term activity ratios such as the fixed asset turnover and total asset turnover provide insight into ATI Inc's efficiency in generating sales from its assets over the long term.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate revenue.
- ATI Inc's fixed asset turnover has been showing a stable trend, ranging between 1.96 and 2.63 over the past eight quarters. This indicates that the company has been efficiently utilizing its fixed assets to generate sales.
- An increasing trend in the fixed asset turnover ratio is generally positive as it indicates that the company is generating more revenue from its existing fixed assets.
2. Total Asset Turnover:
- The total asset turnover ratio measures the company's ability to generate sales from all its assets, including fixed and current assets.
- ATI Inc's total asset turnover has also been stable, ranging between 0.69 and 0.94 over the same eight quarters analyzed. This could suggest that the company's overall asset utilization efficiency has remained relatively consistent.
- A higher total asset turnover ratio indicates that the company is generating more sales from its total assets, which is generally favorable.
In conclusion, ATI Inc's long-term activity ratios suggest that the company has been effectively utilizing both its fixed and total assets to generate sales. However, it would be beneficial for the company to continue monitoring and improving these ratios to enhance its operational efficiency and profitability over time.