Avient Corp (AVNT)

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 8.80 9.13 9.01 9.77 10.77 9.79 9.46 9.75 14.75 9.03 9.85 9.80 9.51 6.95 7.94 8.03 9.00 8.28 7.03 6.63
Receivables turnover 7.57 8.28 7.27 8.61 10.51 8.98 6.57 6.44 7.39 6.48 6.03 5.65 6.17 5.54 8.51 7.68 9.45 8.94 7.33 7.26
Payables turnover 7.06 8.19 7.54 8.11 8.83 9.63 7.37 7.22 10.50 7.72 7.07 6.61 6.60 5.36 7.30 6.60 8.16 8.06 6.24 6.11
Working capital turnover 4.77 5.68 5.01 5.74 6.61 10.48 11.01 13.16 5.35 5.14 4.60 4.25 3.98 3.91 1.35 2.26 3.85 6.01 8.42 7.50

Avient Corp's activity ratios provide insight into how effectively the company manages its assets and liabilities to generate revenue.

1. Inventory Turnover: The inventory turnover ratio indicates how quickly Avient Corp is able to sell its inventory. The decreasing trend from Q4 2022 to Q3 2023 suggests a potential inefficiency in managing inventory levels. The ratio has fluctuated between 4.66 and 8.10, with Q4 2023 at 6.49. Avient Corp should assess its inventory management practices to optimize turnover.

2. Receivables Turnover: This ratio measures how efficiently Avient Corp collects its accounts receivable. The fluctuating trend from Q4 2022 to Q3 2023 indicates varying effectiveness in collecting payments from customers. The ratio ranged from 4.88 to 9.16, with Q4 2023 at 7.86. Avient Corp should focus on improving its receivables management to enhance cash flow.

3. Payables Turnover: The payables turnover ratio reflects how quickly Avient Corp pays its suppliers. The decreasing trend from Q4 2022 to Q3 2023 suggests a lengthening of payment cycles. The ratio varied between 3.96 and 7.97, with Q4 2023 at 5.21. Avient Corp should review its payables processes to maintain healthy vendor relationships.

4. Working Capital Turnover: This ratio assesses how efficiently Avient Corp utilizes its working capital to generate revenue. The downward trend from Q4 2022 to Q3 2023 indicates a decrease in revenue generation per unit of working capital. The ratio ranged from 3.37 to 13.36, with Q4 2023 at 4.96. Avient Corp should analyze its capital utilization strategies to improve operational efficiency.

In summary, Avient Corp should focus on optimizing inventory management, enhancing receivables collection, maintaining effective payables processes, and improving working capital efficiency to drive sustainable growth and profitability.

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 41.50 39.99 40.51 37.34 33.90 37.29 38.60 37.44 24.75 40.44 37.05 37.25 38.38 52.55 45.95 45.47 40.54 44.08 51.95 55.01
Days of sales outstanding (DSO) days 48.24 44.09 50.24 42.39 34.73 40.63 55.52 56.72 49.42 56.31 60.56 64.61 59.17 65.90 42.89 47.51 38.61 40.84 49.79 50.31
Number of days of payables days 51.70 44.56 48.38 44.99 41.33 37.89 49.54 50.58 34.76 47.26 51.61 55.26 55.28 68.11 50.01 55.28 44.71 45.28 58.52 59.75

The activity ratios of Avient Corp indicate how efficiently the company manages its operating cycle.

Days of inventory on hand (DOH) decreased from Q3 2023 to Q4 2023, suggesting that the company is selling its inventory faster. However, the DOH fluctuated throughout the year, indicating some inconsistency in inventory management.

Days of sales outstanding (DSO) increased in Q3 2023 and Q2 2023 compared to previous quarters, indicating a slower collection of receivables. This may signify potential issues with credit policies or delays in customer payments.

Number of days of payables increased from Q3 2023 to Q4 2023, indicating that the company is taking longer to pay its suppliers. A longer payable period could suggest a cash flow benefit, but excessively delaying payments may harm supplier relationships.

Overall, Avient Corp should continue to monitor and improve its activity ratios to optimize its working capital management and enhance overall operational efficiency.

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 2.94 3.70 3.65 3.99 4.41 4.70 7.74 7.37 7.06 6.80 6.25 5.37 4.59 4.22 6.60 7.33 7.66 8.54 6.97 7.01
Total asset turnover 0.51 0.62 0.61 0.68 0.76 0.72 0.98 0.97 0.95 0.91 0.84 0.74 0.65 0.60 0.61 0.79 0.95 1.12 1.19 1.18

The fixed asset turnover ratio of Avient Corp has been fluctuating over the past eight quarters, ranging from a low of 2.45 to a high of 7.85. This ratio indicates that the company generates revenue in relation to its investment in fixed assets, with a higher ratio generally considered more favorable as it shows more efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio of Avient Corp has also shown variability, with values between 0.41 and 0.99 during the same period. This ratio reflects the company's ability to generate sales in relation to its total assets. A lower ratio could indicate underutilization of assets while a higher ratio suggests more efficient utilization.

In comparing the two ratios, the fixed asset turnover is consistently higher than the total asset turnover, implying that Avient Corp is more efficient in generating sales with its fixed assets than with its total assets. However, fluctuations in these ratios could signal changes in the company's asset utilization efficiency and operational performance that warrant further investigation and analysis.