Axalta Coating Systems Ltd (AXTA)

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	6.37	5.51	6.01	5.92	5.98	6.13	5.98	5.70	5.39	5.31	5.35	5.43	5.95	5.27	5.66	5.47	5.69	6.00	6.22	6.10
Receivables turnover	4.23	4.05	4.14	4.18	4.11	3.94	3.98	4.27	4.58	4.32	4.21	4.40	4.71	4.15	4.14	4.23	4.30	4.56	5.79	5.59
Payables turnover	7.10	6.37	6.26	6.17	6.11	6.48	6.52	6.47	6.10	5.90	5.72	5.55	6.06	5.74	5.82	5.64	5.65	6.67	10.10	7.43
Working capital turnover	3.85	3.72	3.13	3.64	3.72	3.59	3.71	3.72	3.73	3.63	3.72	3.86	3.56	3.52	2.34	2.24	2.14	2.11	2.37	3.68

Axalta Coating Systems Ltd's inventory turnover ratio has shown consistency over the period under review, ranging from 5.27 to 6.37 times. This indicates that the company effectively manages its inventory levels, with a higher turnover generally indicating efficient inventory management.

In terms of receivables turnover, Axalta Coating Systems Ltd's performance has fluctuated between 3.94 to 5.79 times. A lower ratio signifies a longer time taken to collect receivables, which may indicate issues with credit policies or the creditworthiness of customers.

The payables turnover ratio for the company has ranged from 5.65 to 7.43 times. A higher turnover indicates that the company is paying its suppliers more frequently, which could be beneficial in terms of managing cash flow and improving supplier relationships.

The working capital turnover ratio for Axalta Coating Systems Ltd has ranged from 2.11 to 3.86 times. This ratio reflects how efficiently the company generates revenue relative to its working capital. A higher ratio suggests better utilization of working capital to generate sales.

Overall, the activity ratios suggest that Axalta Coating Systems Ltd has been effectively managing its inventory, receivables, payables, and working capital during the period analyzed, demonstrating efficiency in its operational activities.

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	57.26	66.18	60.78	61.66	61.02	59.52	61.08	64.08	67.66	68.70	68.28	67.20	61.37	69.19	64.54	66.73	64.12	60.83	58.72	59.82
Days of sales outstanding (DSO)	days	86.34	90.03	88.13	87.27	88.71	92.69	91.81	85.48	79.76	84.44	86.67	83.04	77.48	88.04	88.08	86.27	84.94	79.98	63.09	65.30
Number of days of payables	days	51.41	57.28	58.33	59.19	59.70	56.33	55.95	56.45	59.82	61.84	63.78	65.79	60.25	63.54	62.75	64.76	64.64	54.74	36.14	49.15

Axalta Coating Systems Ltd's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): The average number of days it takes for Axalta to sell its inventory has been relatively stable over the years, ranging from around 57 to 69 days. A lower DOH indicates efficient inventory management, allowing the company to minimize carrying costs and potential obsolescence.

2. Days of Sales Outstanding (DSO): Axalta's DSO, measuring the average number of days it takes to collect on sales, has shown some fluctuation but generally remained between 77 to 92 days. A lower DSO signifies effective credit management and prompt collections, which can improve cash flow and liquidity.

3. Number of Days of Payables: The number of days Axalta takes to pay its suppliers has been relatively consistent, varying from around 36 to 65 days. A longer payment period indicates the company may be effectively utilizing trade credit to manage working capital and fund operations.

In conclusion, while Axalta Coating Systems Ltd demonstrates decent efficiency in managing inventory, collecting receivables, and managing payables, there may be opportunities to further optimize working capital management to enhance overall operational efficiency.

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	4.47	4.43	4.53	4.42	4.31	4.38	4.22	4.15	4.10	4.27	4.02	3.82	3.72	3.65	3.63	3.28	3.13	3.23	3.32	3.74
Total asset turnover	0.73	0.70	0.72	0.73	0.71	0.73	0.72	0.71	0.69	0.70	0.67	0.64	0.61	0.60	0.60	0.54	0.52	0.53	0.58	0.68

The Fixed Asset Turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. For Axalta Coating Systems Ltd, the ratio has shown a positive trend from 3.74 in March 2020 to 4.47 in December 2024. This indicates that the company is becoming more efficient in generating sales from its fixed assets over the years.

On the other hand, the Total Asset Turnover ratio signifies how effectively the company utilizes all its assets to generate revenue. Axalta's Total Asset Turnover ratio has fluctuated slightly over the period under consideration, with a range from 0.52 in December 2020 to 0.73 in December 2024. The ratios show that Axalta's efficiency in utilizing all assets to generate sales has improved gradually over the years.

Overall, the trend in both ratios suggests that Axalta Coating Systems Ltd has been improving its efficiency in utilizing both fixed assets and total assets to generate revenue over the evaluation period. This positive trend indicates potential improvements in operational efficiency and better utilization of resources for revenue generation.