Avient Corp (AVNT)

Short-term

Turnover ratios

Based on the provided data, Avient Corp's activity ratios can be analyzed as follows:

1. Inventory Turnover:
- Avient Corp's inventory turnover has fluctuated over the years, ranging from a low of 5.79 to a high of 8.71.
- The average inventory turnover during the period under review was approximately 7.38.
- Generally, a higher inventory turnover indicates more efficient inventory management, as the company is selling and restocking its inventory at a faster rate.

2. Receivables Turnover:
- No data is available for receivables turnover, which makes it challenging to assess the efficiency of the company in collecting accounts receivable.
- Receivables turnover is a key indicator of how quickly a company is collecting payments from its customers.

3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not provided, preventing an analysis of how quickly the company pays its suppliers.
- Payables turnover is important for understanding the company's payment practices and relationships with suppliers.

4. Working Capital Turnover:
- Avient Corp's working capital turnover has shown significant variability, with a high of 13.36 and a low of 1.37 during the period.
- A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital invested, reflecting efficient asset utilization.

In summary, while Avient Corp demonstrates relatively consistent inventory turnover and working capital turnover ratios, the lack of data for receivables turnover and payables turnover limits the comprehensive analysis of the company's overall activity and liquidity management.

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Average number of days

Based on the provided data for Avient Corp, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand indicate how many days it takes for the company to sell its inventory. In the case of Avient Corp, the DOH has shown a slight fluctuation over the periods, ranging from a low of 41.92 days to a high of 62.99 days.
- A decreasing trend in the DOH, such as the decline from 60.88 days on June 30, 2024, to 57.97 days on December 31, 2024, may imply better inventory management and faster inventory turnover.
- Overall, it is essential for Avient Corp to strike a balance in maintaining optimal inventory levels to meet demand while avoiding excess inventory holding costs.

2. Days of Sales Outstanding (DSO):
- Unfortunately, specific data on days of sales outstanding (DSO) is unavailable, which is typically used to assess how efficiently a company collects its receivables from customers.
- Without DSO figures, it is challenging to evaluate Avient Corp's effectiveness in managing its accounts receivable and the speed of converting sales into cash.

3. Number of Days of Payables:
- Similar to DSO, data regarding the number of days of payables for Avient Corp is not provided, which is used to analyze how long the company takes to pay its suppliers.
- The management of payables is crucial as it impacts cash flow and relationships with suppliers.

In conclusion, while we can analyze the days of inventory on hand for Avient Corp, additional data on days of sales outstanding and number of days of payables would provide a more comprehensive view of the company's efficiency in managing its working capital and liquidity.

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Long-term

The fixed asset turnover ratio for Avient Corp has fluctuated over the years, ranging from a high of 7.85 in June 2022 to a low of 3.26 in June 2023. This ratio indicates how efficiently the company is utilizing its fixed assets to generate sales. An increasing trend in the fixed asset turnover ratio suggests that the company is becoming more efficient in utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown variability as well, with values ranging from 0.53 to 0.99 during the observed period. This ratio reflects the company's ability to generate sales relative to its total assets. A higher total asset turnover ratio indicates that the company is effectively using its total assets to drive sales.

Overall, while the fixed asset turnover ratio provides insights into the efficiency of utilizing fixed assets, the total asset turnover ratio offers a broader view of the company's ability to generate revenue from all its assets. By analyzing these long-term activity ratios, stakeholders can assess Avient Corp's operational performance and efficiency in asset utilization over time.