Barnes Group Inc (B)
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 | 3.90 | 3.56 | 4.22 | 4.38 | 4.38 | 4.69 | 4.78 | 4.57 | 4.82 | 4.74 | 4.62 | 4.49 | 4.46 | 4.61 | 4.57 | 5.28 | 5.66 | 5.22 | 5.14 | 5.17 |
| Receivables turnover | 3.92 | 3.76 | 4.11 | 4.26 | 4.27 | 4.79 | 4.45 | 4.60 | 4.74 | 4.69 | 4.47 | 4.27 | 4.40 | 4.77 | 5.00 | 4.23 | 5.27 | 5.04 | 6.01 | 6.92 |
| Payables turnover | 8.68 | 8.45 | 8.64 | 8.36 | 8.55 | 9.24 | 9.06 | 8.66 | 8.81 | 9.08 | 8.74 | 8.83 | 9.44 | 12.33 | 11.51 | 10.96 | 11.11 | 10.88 | 10.11 | 10.06 |
| Working capital turnover | 2.72 | 2.51 | 2.97 | 2.88 | 2.92 | 3.13 | 3.09 | 3.10 | 3.36 | 3.34 | 3.26 | 3.07 | 3.19 | 3.57 | 3.87 | 3.50 | 4.37 | 4.39 | 5.31 | 6.10 |
Activity ratios provide insights into how efficiently a company is managing its assets and liabilities to generate revenue. Let's analyze the activity ratios of Barnes Group Inc. based on the provided data.
1. Inventory Turnover:
- Barnes Group Inc.'s inventory turnover has been relatively stable over the past eight quarters, ranging from 2.47 to 3.20 times.
- A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which can be positive as it reduces carrying costs and the risk of obsolete inventory.
- Barnes Group Inc. has maintained a moderate inventory turnover ratio, which suggests efficient management of inventory levels.
2. Receivables Turnover:
- The receivables turnover ratio for Barnes Group Inc. has fluctuated over the quarters, ranging from 3.87 to 4.84 times.
- A higher receivables turnover ratio indicates that the company is efficient in collecting payments from customers and managing its accounts receivable.
- Barnes Group Inc.'s varying receivables turnover ratio reflects changes in its credit policies and the effectiveness of its collection efforts.
3. Payables Turnover:
- Barnes Group Inc.'s payables turnover has shown consistency over the quarters, ranging from 5.60 to 6.14 times.
- A higher payables turnover ratio suggests that the company is paying its suppliers promptly, which can enhance its relationship with suppliers and potentially improve negotiating terms.
- The stable payables turnover ratio indicates that Barnes Group Inc. has a consistent approach to managing its trade payables.
4. Working Capital Turnover:
- The working capital turnover ratio for Barnes Group Inc. has remained relatively steady, ranging from 2.58 to 3.16 times.
- A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate revenue.
- Barnes Group Inc.'s consistent working capital turnover ratio suggests effective utilization of its current assets in supporting the business operations.
In conclusion, based on the activity ratios analysis of Barnes Group Inc., the company demonstrates a moderate to good level of efficiency in managing its inventory, receivables, payables, and working capital to support its revenue generation activities.
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 | 93.51 | 102.61 | 86.44 | 83.31 | 83.39 | 77.80 | 76.34 | 79.79 | 75.78 | 77.06 | 79.03 | 81.25 | 81.89 | 79.15 | 79.79 | 69.11 | 64.48 | 69.93 | 71.05 | 70.56 |
| Days of sales outstanding (DSO) | days | 93.04 | 97.07 | 88.73 | 85.69 | 85.39 | 76.25 | 81.94 | 79.28 | 77.03 | 77.91 | 81.65 | 85.50 | 82.92 | 76.59 | 73.04 | 86.29 | 69.21 | 72.39 | 60.72 | 52.75 |
| Number of days of payables | days | 42.06 | 43.20 | 42.25 | 43.65 | 42.68 | 39.50 | 40.29 | 42.17 | 41.44 | 40.20 | 41.76 | 41.33 | 38.68 | 29.59 | 31.71 | 33.29 | 32.84 | 33.54 | 36.12 | 36.29 |
Activity ratios help assess how efficiently a company manages its assets and liabilities in generating sales. For Barnes Group Inc., the days of inventory on hand (DOH) has been fluctuating over the quarters, ranging from 115.18 days to 147.74 days. This indicates variations in how quickly the company turns over its inventory, with a peak in Q3 2023.
Meanwhile, the days of sales outstanding (DSO) have also shown variability, with values between 75.40 days and 94.30 days. Lower DSO values suggest a faster collection of receivables, which improved in Q3 2023.
In terms of payables, Barnes Group Inc. has consistently maintained its number of days of payables within a narrow range, with values hovering around 60 days in each quarter. This implies that the company is efficient in managing its payables and balances the timing of payments effectively.
Overall, Barnes Group Inc. should focus on optimizing its inventory turnover and continue to manage its receivables efficiently to enhance its liquidity and working capital management.
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 | 3.32 | 4.00 | 3.95 | 3.90 | 4.03 | 3.92 | 3.74 | 3.64 | 3.51 | 3.25 | 3.03 | 2.98 | 3.35 | 3.67 | 4.07 | 5.16 | 5.13 | 6.03 | 7.11 |
| Total asset turnover | 0.42 | 0.40 | 0.53 | 0.52 | 0.52 | 0.54 | 0.52 | 0.49 | 0.48 | 0.47 | 0.44 | 0.41 | 0.41 | 0.45 | 0.50 | 0.53 | 0.67 | 0.69 | 0.80 | 0.93 |
Long-term activity ratios can provide insights into how efficiently Barnes Group Inc. is utilizing its assets to generate sales.
The fixed asset turnover ratio shows how effectively the company is generating revenue from its fixed assets. Barnes Group's fixed asset turnover has been relatively stable over the past eight quarters, fluctuating between 3.41 and 4.06. The higher the ratio, the more efficiently the company is using its fixed assets to generate sales. A fixed asset turnover ratio above 1 indicates that the company is using its fixed assets effectively. Barnes Group's fixed asset turnover ratios consistently above 3 suggest that the company is efficiently utilizing its fixed assets in generating sales.
The total asset turnover ratio measures the efficiency of the company in using all its assets to generate sales. Barnes Group's total asset turnover has ranged from 0.41 to 0.53 over the same period. A higher total asset turnover ratio indicates that the company is generating more sales relative to its total assets. Barnes Group's total asset turnover ratios above 0.50 indicate that the company is effectively using its total assets to generate sales.
Overall, based on the long-term activity ratios, Barnes Group Inc. appears to be efficiently utilizing its fixed assets and total assets to generate sales. The stable and relatively high fixed asset turnover ratios indicate effective management of fixed assets, while the total asset turnover ratios suggest efficient use of all assets in revenue generation.