Brunswick Corporation (BC)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Brunswick Corporation:

1. Inventory Turnover:
- Inventory turnover measures how efficiently a company manages its inventory. A higher ratio indicates better inventory management.
- Brunswick's inventory turnover has shown a decreasing trend from 4.40 in 2020 to 2.98 in 2024. This suggests a decline in the efficiency of converting inventory into sales over the years.

2. Receivables Turnover:
- Receivables turnover ratio reflects how quickly a company collects its accounts receivable. A higher ratio signifies efficient collection practices.
- The data shows that no specific figures are provided for receivables turnover for any of the years, which limits the assessment of Brunswick's collection efficiency.

3. Payables Turnover:
- Payables turnover measures how quickly a company pays its suppliers. A higher ratio indicates faster payment to suppliers.
- Similar to receivables turnover, the data indicates no provided figures for payables turnover for the years, making it challenging to evaluate the company's payment practices.

4. Working Capital Turnover:
- Working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales.
- Brunswick's working capital turnover has fluctuated over the years, with values ranging from 5.65 in 2022 to 8.57 in 2021. A higher ratio implies better utilization of working capital to generate revenue.

In conclusion, while the working capital turnover ratio fluctuates, the inventory turnover ratio has shown a decreasing trend, suggesting a potential area for improvement in inventory management efficiency. However, the absence of data for receivables and payables turnover limits a comprehensive analysis of Brunswick Corporation's overall activity efficiency.

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Average number of days

The activity ratios of Brunswick Corporation show the following trends over the years:

1. Days of Inventory on Hand (DOH):
- In December 31, 2020, the company had 82.89 days of inventory on hand.
- This figure increased to 105.48 days by December 31, 2021, and further to 110.39 days by December 31, 2022.
- By December 31, 2023, the days of inventory on hand rose to 112.97 days, and it peaked at 122.34 days by December 31, 2024.
- The increasing trend in days of inventory on hand indicates that Brunswick Corporation is taking longer to sell its inventory, potentially signaling inefficiencies in inventory management or a slowing down of sales.

2. Days of Sales Outstanding (DSO):
- The DSO data is not provided for any of the years, indicating that the company does not have accounts receivable or sales outstanding information available. Without this data, it is challenging to assess the efficiency of the company in collecting payments from customers.

3. Number of Days of Payables:
- Similarly, the information on the number of days of payables is not provided for any of the years, making it difficult to evaluate the company's payment practices and relationships with its suppliers.

In conclusion, based on the available data, Brunswick Corporation's activity ratios suggest a concerning trend of increasing days of inventory on hand, which may require further analysis and corrective actions to improve inventory management efficiency.

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Long-term

The Fixed Asset Turnover ratio measures the efficiency of Brunswick Corporation in generating sales revenue from its fixed assets. The trend shows an increase in the fixed asset turnover ratio from 5.03 in 2020 to 5.13 in 2021, indicating that the company is generating more sales relative to its investment in fixed assets. However, there was a slight decrease to 4.92 in 2022. Unfortunately, data is not available for 2023 and 2024.

Total Asset Turnover ratio reflects the efficiency of Brunswick Corporation in using its total assets to generate sales. The total asset turnover ratio declined from 1.15 in 2020 to 0.92 in 2024, with fluctuations in between. This indicates that the company's ability to generate sales from its total assets decreased over the years, suggesting potential inefficiencies in asset utilization.