Avnet Inc (AVT)
Activity ratios
Short-term
Turnover ratios
| Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.84 | 3.79 | 3.68 | 3.99 | 4.27 | 4.34 | 4.66 | 4.81 | 5.03 | 5.52 | 5.37 | 5.49 | 5.34 | 5.94 | 5.62 | 5.33 | 5.70 | 5.82 | 5.59 | 5.51 |
| Receivables turnover | 5.41 | 5.74 | 5.68 | 5.58 | 5.57 | — | 5.50 | — | 5.65 | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 6.27 | 6.56 | 6.81 | 6.66 | 6.92 | 7.40 | 7.46 | 6.46 | 6.22 | 6.85 | 7.06 | 7.30 | 7.20 | 8.19 | 8.18 | 7.83 | 8.88 | 9.21 | 9.02 | 8.23 |
| Working capital turnover | 4.02 | 4.13 | 4.02 | 3.95 | 4.08 | 4.07 | 4.22 | 5.25 | 5.26 | 5.58 | 5.07 | 4.69 | 4.76 | 4.97 | 4.92 | 4.62 | 4.36 | 4.90 | 4.89 | 4.95 |
Avnet Inc's inventory turnover has been relatively stable over the past few quarters, ranging between 3.68 and 5.52 times. This suggests that the company is managing its inventory efficiently, turning over its inventory multiple times during the period.
The receivables turnover ratio for Avnet Inc has shown some fluctuations, with values ranging from 5.41 to 5.74. This indicates that the company is collecting its accounts receivable in a timely manner, with a higher turnover ratio suggesting a shorter time to collect outstanding payments.
The payables turnover ratio for Avnet Inc has also varied, ranging from 6.22 to 9.21. A higher payables turnover ratio implies that the company is taking less time to pay its suppliers, potentially benefiting from favorable credit terms.
The working capital turnover ratio for Avnet Inc has shown some fluctuations, with values ranging between 3.95 and 5.58 times. This ratio indicates how efficiently the company is using its working capital to generate sales, with a higher ratio suggesting better utilization of resources.
Overall, Avnet Inc's activity ratios depict a company that is efficiently managing its inventory, collecting receivables promptly, paying suppliers in a timely manner, and utilizing its working capital effectively to generate sales.
Average number of days
| Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 95.09 | 96.27 | 99.10 | 91.49 | 85.41 | 84.19 | 78.29 | 75.84 | 72.57 | 66.07 | 68.03 | 66.54 | 68.32 | 61.44 | 64.90 | 68.50 | 64.04 | 62.74 | 65.31 | 66.27 |
| Days of sales outstanding (DSO) | days | 67.47 | 63.64 | 64.26 | 65.39 | 65.52 | — | 66.40 | — | 64.58 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 58.17 | 55.64 | 53.60 | 54.78 | 52.73 | 49.33 | 48.91 | 56.48 | 58.68 | 53.29 | 51.73 | 50.01 | 50.68 | 44.56 | 44.60 | 46.64 | 41.12 | 39.62 | 40.47 | 44.36 |
Based on the data provided, we can analyze Avnet Inc's activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- Avnet's days of inventory on hand have been fluctuating over the periods, ranging from a low of 61.44 days to a high of 99.10 days.
- The company's efficiency in managing inventory improved initially, with a decreasing trend from 66.27 days to 61.44 days by the end of 2021. However, there was an increasing trend in 2022 and 2023.
- A higher number of days of inventory on hand may indicate slower inventory turnover, tying up capital and potentially leading to higher carrying costs.
2. Days of Sales Outstanding (DSO):
- The data provided is inconsistent, with missing values in multiple periods, making it challenging to determine a trend in Avnet's days of sales outstanding.
- Ideally, a lower DSO value indicates that the company is collecting its accounts receivable more quickly.
- Avnet should aim to manage its accounts receivable efficiently to ensure steady cash flow and minimize the risk of bad debts.
3. Number of Days of Payables:
- Avnet's number of days of payables also fluctuated throughout the periods, ranging from a low of 39.62 days to a high of 58.68 days.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which can improve cash flow but may strain supplier relationships.
- Avnet should strike a balance in managing its payables to maintain positive relationships with suppliers while optimizing working capital.
Overall, analyzing these activity ratios provides insights into Avnet Inc's efficiency in managing its inventory, receivables, and payables. It is essential for the company to continually monitor and improve these ratios to enhance operational performance and financial health.
Long-term
| Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 41.81 | 44.07 | 45.43 | 55.46 | 60.10 | 65.83 | 69.60 | 84.90 | 77.13 | 71.62 | 63.85 | 57.96 | 53.01 | 48.46 | 44.29 | 43.86 | 43.58 | 43.92 | 42.99 | 43.57 |
| Total asset turnover | 1.95 | 2.01 | 1.97 | 2.07 | 2.13 | 2.18 | 2.21 | 2.32 | 2.34 | 2.37 | 2.25 | 2.21 | 2.19 | 2.21 | 2.16 | 2.12 | 2.18 | 2.24 | 2.18 | 2.14 |
Avnet Inc's long-term activity ratios provide insights into the efficiency of the company in utilizing its fixed assets and total assets to generate sales revenue over time.
1. Fixed Asset Turnover:
- Avnet Inc's fixed asset turnover has shown a fluctuating trend over the periods analyzed, ranging from 41.81 to 84.90. This ratio indicates that for each dollar invested in fixed assets, the company generated sales multiple times during the period.
- The overall declining trend in fixed asset turnover from 2022 to 2024 suggests a potential decrease in efficiency in utilizing fixed assets to generate sales. However, it is noteworthy that the ratio remains relatively high, indicating that the company is still generating significant revenue from its fixed assets despite the decrease.
2. Total Asset Turnover:
- The total asset turnover ratio for Avnet Inc has also shown fluctuations over the periods analyzed, ranging from 1.95 to 2.37. This ratio signifies the company's ability to generate sales from all its assets.
- The trend in total asset turnover remained relatively stable from 2020 to 2022 but showed a slight upward trend in 2023 and 2024. This indicates that the company improved its efficiency in generating sales revenue relative to its total assets during the recent periods.
Overall, while Avnet Inc may have experienced fluctuations in its long-term activity ratios, it is important to consider the context of the industry and economic conditions when interpreting these ratios. The company should continue to monitor and improve its asset utilization to enhance operational efficiency and profitability.