American Axle & Manufacturing (AXL)

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 12.29 12.68 12.11 12.15 11.97 12.20 10.93 12.06 12.03 2.80 3.20 2.28 3.82 17.68 17.02 17.36 17.55 15.36 12.98 13.45
Receivables turnover 7.43 6.77 6.50 6.57 7.08 5.85 5.75 5.58 6.76 7.24 6.99 5.64 5.95 5.22 9.03 7.81 8.15 6.89 6.09 5.93
Payables turnover 7.67 7.19 6.97 7.32 7.56 6.99 6.40 6.59 8.06 1.93 1.95 1.18 2.13 8.98 17.27 10.96 10.52 8.80 7.00 6.90
Working capital turnover 7.56 6.73 6.83 7.26 7.31 6.77 6.34 5.84 6.32 6.54 6.99 5.11 5.26 5.29 7.08 7.53 7.99 7.01 9.77 11.02

American Axle & Manufacturing Holdings Inc has shown consistency in managing its inventory efficiently, as indicated by its inventory turnover ratios ranging from 10.99 to 11.67 over the past eight quarters. This suggests that the company is effectively converting its inventory into sales, with the higher turnover ratios indicating a quicker turnover of inventory.

In terms of receivables turnover, the company has maintained relatively stable ratios ranging from 5.73 to 7.43 over the same period. This indicates that American Axle & Manufacturing Holdings Inc is efficiently collecting cash from its credit sales, with higher ratios being more favorable as they reflect a quicker collection of receivables.

Similarly, the payables turnover ratios have also remained consistent, ranging from 5.79 to 7.05. This suggests that the company efficiently manages its accounts payable by settling its debts in a timely manner and possibly taking advantage of any available discounts.

The working capital turnover ratios have shown variability, ranging from 5.82 to 7.55. A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital invested, which is generally seen as favorable as it reflects efficient utilization of working capital.

Overall, the activity ratios of American Axle & Manufacturing Holdings Inc indicate a strong performance in managing its inventory, receivables, payables, and working capital effectively over the analyzed period.

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 29.70 28.79 30.14 30.05 30.50 29.92 33.40 30.28 30.34 130.31 114.11 159.81 95.67 20.65 21.45 21.03 20.80 23.76 28.11 27.14
Days of sales outstanding (DSO) days 49.11 53.91 56.20 55.59 51.59 62.42 63.51 65.43 53.97 50.40 52.21 64.74 61.31 69.91 40.44 46.71 44.79 52.94 59.90 61.53
Number of days of payables days 47.59 50.76 52.34 49.89 48.26 52.20 57.00 55.37 45.31 188.66 187.02 309.79 171.36 40.66 21.13 33.30 34.71 41.48 52.16 52.91

The activity ratios of American Axle & Manufacturing Holdings Inc reflect how efficiently the company manages its assets and liabilities in relation to its sales cycle.

1. Days of Inventory on Hand (DOH): The company's average DOH over the past eight quarters has been around 32 to 37 days, indicating that it maintains its inventory for approximately a month to a little over a month before selling it. The downward trend in recent quarters suggests that the company has been improving its inventory management by reducing the time it takes to sell its inventory.

2. Days of Sales Outstanding (DSO): American Axle & Manufacturing Holdings Inc's DSO has varied between 49 to 65 days over the same period, indicating the average number of days it takes for the company to collect its accounts receivable. The fluctuating nature of this ratio implies that the company has faced challenges in efficiently collecting payments from its customers, with longer DSO potentially indicating slower cash inflows.

3. Number of Days of Payables: The company's average number of days of payables has ranged from 51 to 63 days, representing the average time it takes for American Axle & Manufacturing Holdings Inc to pay its suppliers. The consistency of this ratio suggests that the company has been maintaining a steady payment cycle with its suppliers, neither delaying payments excessively nor paying too early.

Overall, the analysis of these activity ratios indicates that American Axle & Manufacturing Holdings Inc has been making efforts to improve its inventory management efficiency, while facing challenges in managing its accounts receivable collection process. The stable days of payables signal a balanced approach to managing its liabilities, contributing to a comprehensive assessment of the company's operational effectiveness.

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 3.45 3.39 3.29 3.14 3.05 2.99 2.70 2.66 2.58 2.69 2.70 2.27 2.18 2.18 2.25 2.73 2.82 2.90 2.73 2.81
Total asset turnover 1.14 1.09 1.09 1.07 1.06 1.00 0.93 0.90 0.92 0.95 0.95 0.81 0.80 0.79 0.82 1.00 1.00 0.92 0.92 0.94

American Axle & Manufacturing Holdings Inc's long-term activity ratios reflect its efficiency in utilizing its fixed assets and total assets to generate revenue.

The fixed asset turnover ratio has been increasing steadily over the past eight quarters, reaching 3.45 in Q4 2023 from 2.65 in Q1 2022. This indicates that the company is generating $3.45 in sales revenue for every $1 invested in fixed assets, showcasing improved efficiency in utilizing its long-term assets.

Similarly, the total asset turnover ratio has also been trending upwards, indicating an enhanced ability to generate sales from its total assets. The ratio increased from 0.90 in Q1 2022 to 1.14 in Q4 2023. This suggests that American Axle & Manufacturing Holdings Inc is becoming more efficient in leveraging its total assets to generate revenue.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that the company is effectively utilizing its long-term assets to drive sales growth and improve operational efficiency over the analyzed quarters.