American Axle & Manufacturing (AXL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 12.28 | 11.91 | 12.00 | 11.71 | 11.35 | 11.67 | 11.13 | 11.15 | 10.99 | 11.12 | 9.89 | 10.87 | 10.80 | 10.86 | 11.79 | 12.36 | 12.77 | 13.22 | 12.38 | 13.38 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 8.28 | 7.38 | 7.36 | 7.22 | 7.55 | 6.75 | 6.84 | 7.27 | 7.31 | 6.71 | 6.32 | 5.82 | 6.32 | 6.55 | 6.96 | 5.10 | 5.25 | 5.29 | 7.08 | 7.47 |
American Axle & Manufacturing's inventory turnover ratio has gradually decreased from 13.38 in March 2020 to 12.28 by December 2024. This indicates that the company is selling its inventory at a slightly slower pace over the years. However, the ratio remains relatively high, suggesting efficient management of inventory levels.
The receivables turnover ratio for the company is not provided, which limits our ability to assess how quickly the company is collecting payments from customers.
Similarly, the payables turnover ratio data is unavailable, making it challenging to evaluate how efficiently the company is managing its payables.
The working capital turnover ratio has shown some fluctuation, ranging from 5.10 in March 2021 to a peak of 8.28 in December 2024. This ratio indicates how effectively the company is utilizing its working capital to generate sales revenue. The increasing trend in this ratio suggests that American Axle & Manufacturing is making better use of its working capital over time.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.73 | 30.66 | 30.42 | 31.16 | 32.15 | 31.28 | 32.80 | 32.73 | 33.22 | 32.83 | 36.90 | 33.58 | 33.78 | 33.60 | 30.96 | 29.54 | 28.58 | 27.62 | 29.49 | 27.27 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, the analysis of American Axle & Manufacturing's activity ratios reveals the following insights:
1. Days of Inventory on Hand (DOH) have shown fluctuations over time, ranging from a low of 27.27 days as of March 31, 2020, to a high of 36.90 days as of June 30, 2022. The trend indicates an increase in the number of days it takes to sell inventory, which may suggest either a buildup of excess inventory or slower sales turnover.
2. Days of Sales Outstanding (DSO) data is missing for all periods, indicating that information on the average number of days it takes to collect revenue from customers is not available. This makes it challenging to assess the company's efficiency in managing accounts receivable.
3. The Number of Days of Payables data is also unavailable for all periods, making it difficult to analyze the efficiency of the company in managing its trade payables. Without this information, it is unclear how long the company takes to pay its suppliers, which is essential for understanding its working capital management.
In conclusion, while the Days of Inventory on Hand ratio provides some insights into American Axle & Manufacturing's inventory management efficiency, the lack of data on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive analysis of the company's overall activity ratios and working capital management.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 3.20 | 3.30 | 3.14 | 3.05 | 2.96 | 2.69 | 2.65 | 2.58 | 2.69 | 2.54 | 2.27 | 2.18 | 2.18 | 2.25 | 2.71 |
| Total asset turnover | 1.21 | 1.16 | 1.17 | 1.15 | 1.14 | 1.10 | 1.09 | 1.07 | 1.06 | 0.99 | 0.92 | 0.90 | 0.91 | 0.95 | 0.95 | 0.81 | 0.80 | 0.79 | 0.82 | 0.99 |
The fixed asset turnover ratio for American Axle & Manufacturing has been steadily increasing over the years, indicating that the company is generating more revenue relative to its investment in fixed assets. This implies improved efficiency in utilizing its long-term assets to generate sales.
On the other hand, the total asset turnover ratio shows a somewhat fluctuating trend, but generally improving over time. This ratio indicates how effectively the company is using all its assets to generate revenue. The increasing trend suggests that American Axle & Manufacturing is becoming more efficient in generating sales with its total asset base.
Overall, the trend in both fixed asset turnover and total asset turnover ratios suggests that American Axle & Manufacturing is effectively utilizing its long-term assets to drive revenue growth and improve operational efficiency. This should be monitored to ensure continued sustainability and profitability in the long term.