Ball Corporation (BALL)

Short-term

Turnover ratios

Inventory turnover for Ball Corp. has been relatively consistent over the past five years, ranging from 5.86 to 7.29. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales.

Receivables turnover has also remained fairly stable, with a slight decrease from 7.03 in 2019 to 6.01 in 2023. This suggests that the company is efficient in collecting payments from customers.

On the other hand, payables turnover has shown some fluctuation, with a low of 2.33 in 2021 and a high of 3.03 in 2023. A higher payables turnover ratio implies that the company is taking longer to pay its suppliers, which could indicate potential liquidity issues.

Working capital turnover was not provided for the earlier years, but the significant decrease from 51.00 in 2020 to no data in subsequent years may indicate a change in the company's working capital management strategy. This could be due to various factors such as changes in operational efficiency, financial structure, or business activities.

Overall, Ball Corp. seems to be effectively managing its inventory and receivables turnover, although the fluctuation in payables turnover and the missing data for working capital turnover warrant further investigation into the company's liquidity and operational efficiency.

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Average number of days

The activity ratios of Ball Corp. provide insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): Ball Corp. has been able to improve its inventory management efficiency over the years, with the number of days of inventory on hand decreasing from 62.30 days in 2022 to 50.10 days in 2023. This indicates that the company is carrying less inventory relative to its sales, which could lead to lower holding costs and better cash flow management.

2. Days of Sales Outstanding (DSO): The days of sales outstanding have fluctuated over the years, with a slight increase in 2023 compared to 2022. This metric represents the average number of days it takes for Ball Corp. to collect on its accounts receivable. A lower DSO is favorable as it indicates faster cash collection and efficient credit management.

3. Number of Days of Payables: Ball Corp. has consistently reduced the number of days of payables over the years, from 156.70 days in 2021 to 120.60 days in 2023. A lower number of days of payables suggests that the company is taking fewer days to pay its suppliers, potentially indicating strong supplier relationships and negotiating power.

Overall, Ball Corp. has demonstrated improvements in its activity ratios, reflecting increased efficiency in managing inventory, collecting receivables, and paying its suppliers. These trends suggest that the company is enhancing its working capital management and optimizing its cash flow.

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Long-term

The fixed asset turnover ratio measures how efficiently Ball Corp. generates revenue from its fixed assets. The trend shows a decline from 2.57 in 2019 to 1.90 in 2023. This indicates that the company is generating less revenue per dollar of fixed assets over the years. A lower ratio may suggest underutilization of fixed assets or a decrease in sales relative to the value of fixed assets.

On the other hand, the total asset turnover ratio reflects Ball Corp.'s ability to generate sales from all its assets, both fixed and current. The trend here shows fluctuations, with a slight increase in 2022 followed by a decrease in 2023. The ratio has varied between 0.65 in 2020 to 0.77 in 2022, suggesting changing efficiency in asset utilization over the years.

Overall, the declining trend in fixed asset turnover and the fluctuating trend in total asset turnover indicate a potential need for Ball Corp. to assess its asset management strategies to improve efficiency in generating sales from its assets. Further analysis and comparison with industry benchmarks may provide more insights into the company's performance in this area.