Ball Corporation (BALL)

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	7.75	7.34	6.46	6.28	6.42	6.34	5.47	5.34	6.61	6.98	7.37	7.43	7.46	7.76	7.24	7.58	6.31	5.03	3.04	0.93
Receivables turnover	5.81	6.70	6.20	5.78	5.80	5.30	4.74	4.53	5.32	5.23	4.77	5.63	6.66	6.34	6.19	6.11	7.02	5.89	5.86	6.15
Payables turnover	3.22	3.76	3.73	3.77	3.19	3.08	2.71	2.47	2.49	2.71	2.77	3.10	2.94	3.59	3.73	3.93	2.56	2.23	1.31	0.43
Working capital turnover	—	—	—	—	—	—	1,486.80	—	—	—	—	—	50.07	43.03	—	47.82	—	205.86	28.74	31.85

Ball Corp.'s activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory turnover: This ratio measures how many times inventory is sold and replaced over a period. Ball Corp. saw an increasing trend in inventory turnover from Q1 2023 to Q4 2023, indicating an improvement in inventory management efficiency.

2. Receivables turnover: This ratio reflects how efficiently the company collects outstanding receivables from customers. Ball Corp. experienced fluctuations in receivables turnover throughout the quarters, with a peak in Q3 2023. Generally, a higher turnover indicates prompt collection of receivables.

3. Payables turnover: The payables turnover ratio assesses how quickly a company pays its suppliers. Ball Corp.'s payables turnover increased consistently over the quarters, indicating that the company is managing its payables more efficiently.

4. Working capital turnover: Working capital turnover compares net sales to working capital, showing how effectively the company is utilizing its working capital to generate sales. The absence of data in Q1 to Q3 2022 suggests a possible anomaly or data missing. However, the notable figure in Q4 2022 signifies a considerable turnover of working capital to support sales during that period.

Overall, Ball Corp. appears to be improving its operational efficiency in managing inventory, receivables, and payables, which could positively impact its overall financial performance and liquidity.

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	47.13	49.72	56.51	58.12	56.84	57.59	66.77	68.32	55.25	52.32	49.53	49.13	48.94	47.06	50.38	48.18	57.82	72.56	119.94	391.40
Days of sales outstanding (DSO)	days	62.84	54.46	58.89	63.10	62.89	68.92	77.06	80.61	68.59	69.77	76.49	64.86	54.84	57.59	59.00	59.71	52.02	61.96	62.27	59.34
Number of days of payables	days	113.44	97.02	97.89	96.74	114.34	118.46	134.75	147.82	146.49	134.46	131.67	117.82	124.08	101.81	97.96	92.98	142.33	163.44	277.70	840.82

The activity ratios for Ball Corp. can provide insights into the company's efficiency in managing its inventory, collecting accounts receivable, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
DOH measures how long, on average, inventory sits in the company's possession before being sold. A lower DOH indicates efficient inventory management. In Q4 2023, the company held inventory for around 50.10 days, which decreased from the previous quarter. This trend suggests that Ball Corp. has been able to effectively manage its inventory levels in recent quarters.

2. Days of Sales Outstanding (DSO):
DSO measures how long it takes, on average, to collect payment from customers after making a sale. A lower DSO indicates quicker cash collection. In Q4 2023, the company's DSO was around 60.72 days, which decreased compared to the previous quarter. This improvement suggests that Ball Corp. has been more effective in collecting payments from customers.

3. Number of Days of Payables:
This metric reflects the average number of days it takes for the company to pay its suppliers. A higher number of days indicates the company is taking longer to pay its bills. In Q4 2023, Ball Corp. took around 120.60 days to pay its suppliers, which increased from the previous quarter. However, compared to the same period in the previous year, the number of days to payables has decreased, indicating some improvement.

Overall, the trend in the activity ratios of Ball Corp. shows an improvement in inventory management and accounts receivable collection, but there has been an increase in the number of days taken to pay suppliers in the most recent quarter. Companies should strive to strike a balance in these ratios to ensure optimal efficiency in their operations.

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	1.84	1.90	1.95	2.06	2.14	2.26	2.25	2.12	2.10	2.11	2.12	2.14	2.17	2.30	2.40	2.53	2.56	2.67	2.61	2.66
Total asset turnover	0.70	0.69	0.70	0.74	0.76	0.76	0.71	0.68	0.69	0.65	0.65	0.66	0.63	0.66	0.67	0.69	0.66	0.71	0.67	0.69

The fixed asset turnover ratio for Ball Corp. has shown a decreasing trend from Q1 2022 to Q4 2023, indicating a decline in the company's ability to generate sales from its fixed assets. This may suggest that Ball Corp. is not efficiently utilizing its long-term assets to generate revenue. However, the ratio is still relatively high, indicating that the company is able to generate a significant amount of sales relative to its fixed assets.

On the other hand, the total asset turnover ratio has also exhibited a downward trend over the same period, implying that Ball Corp. is becoming less efficient in generating sales from its total assets. This decline may indicate that Ball Corp. is experiencing challenges in utilizing its assets effectively to generate revenue.

Overall, the decreasing trends in both the fixed asset turnover and total asset turnover ratios for Ball Corp. suggest potential inefficiencies in the company's asset utilization, which may require further investigation and strategic adjustments to improve operational performance.