Avient Corp (AVNT)

Short-term

Turnover ratios

The inventory turnover ratio for Avient Corp has shown a slight increase from 7.50 in 2020 to 8.07 in 2021. However, this ratio has declined in the following years, reaching 6.30 by the end of 2024. This indicates that the company is selling its inventory less frequently over time, which may suggest possible issues with managing inventory levels or changes in demand.

Unfortunately, there is no data available for the receivables turnover and payables turnover ratios, which could have provided further insights into the company's efficiency in collecting receivables and managing payables.

On the other hand, the working capital turnover ratio has shown some fluctuation over the years, ranging from 4.16 in 2020 to 5.44 in 2021, and then stabilizing around 4.85 to 4.96 in the subsequent years. This ratio measures how effectively the company is using its working capital to generate sales. The overall trend suggests that Avient Corp is efficiently using its working capital to generate revenue, although there was a slight decrease in efficiency from 2021 to 2024.

In summary, while Avient Corp has shown varying levels of efficiency in managing its inventory and working capital over the years, further analysis of receivables and payables turnover would provide a more complete picture of the company's overall operational effectiveness.

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Average number of days

Based on the provided data for Avient Corp's activity ratios, we can analyze the following:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand decreased from 48.64 days in 2020 to 45.25 days in 2021 before increasing to 54.11 days in 2022, 56.54 days in 2023, and finally 57.97 days in 2024.
- An increase in the Days of Inventory on Hand indicates that inventory is being held for a longer period before being sold. This may suggest inefficiencies in inventory management or slower inventory turnover.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding for the years 2020 to 2024. Without this data, it is challenging to assess the efficiency of Avient Corp in collecting its accounts receivable.

3. Number of Days of Payables:
- Similarly, the data does not include information on the Number of Days of Payables for the years 2020 to 2024. Without this data, it is difficult to gauge how long Avient Corp takes to pay its suppliers, impacting its liquidity and supplier relationships.

Overall, based on the available information, it appears that Avient Corp experienced an increase in its Days of Inventory on Hand over the years, potentially signaling challenges in managing inventory efficiently. However, the lack of data on Days of Sales Outstanding and Number of Days of Payables limits the comprehensive analysis of the company's overall activity ratios.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Avient Corp:

1. Fixed Asset Turnover:
- In December 31, 2020, the fixed asset turnover ratio was 4.67, indicating that for every dollar invested in fixed assets, the company generated $4.67 in revenue.
- By December 31, 2021, the ratio improved to 6.42, showing increased efficiency in utilizing fixed assets to generate revenue.
- However, there was a significant drop in efficiency by December 31, 2022, with the ratio decreasing to 3.24. This suggests a potential decline in the company's ability to generate revenue from its fixed assets.
- Unfortunately, data for December 31, 2023, and December 31, 2024, are unavailable, making it challenging to assess the trend in fixed asset turnover for those years.

2. Total Asset Turnover:
- Total asset turnover reflects how effectively a company generates revenue relative to its total assets.
- Avient Corp's total asset turnover was 0.67 as of December 31, 2020, indicating that the company generated $0.67 in revenue for every dollar in total assets.
- The ratio improved to 0.96 by December 31, 2021, suggesting an increase in the company's efficiency in utilizing total assets to generate revenue.
- However, the ratio declined to 0.56 by December 31, 2022, potentially indicating a reduction in the company's ability to generate revenue compared to its total asset base.
- The total asset turnover remained relatively stable around 0.53 to 0.56 for December 31, 2023, and December 31, 2024.

In conclusion, the trends in the fixed asset turnover and total asset turnover ratios for Avient Corp show fluctuations in the efficiency of utilizing both fixed and total assets to generate revenue over the evaluated years. Further analysis would be necessary to understand the underlying factors influencing these ratios.