Brunswick Corporation (BC)
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 | 3.59 | 3.77 | 3.69 | 3.68 | 3.89 | 3.93 | 3.94 | 3.83 | 4.07 | 4.74 | 4.95 | 4.69 | 4.40 | 5.07 | 4.19 | 3.50 | 3.62 | 3.73 | 3.85 | 3.82 |
| Receivables turnover | 12.98 | 11.65 | 10.95 | 9.83 | 12.55 | 11.94 | 10.46 | 9.19 | 12.05 | 12.36 | 10.69 | 8.93 | 12.88 | 10.29 | 8.50 | 8.64 | 12.38 | 10.01 | 8.71 | 8.42 |
| Payables turnover | 9.51 | 11.05 | 9.98 | 9.33 | 8.64 | 8.90 | 8.39 | 7.81 | 7.08 | 7.56 | 7.02 | 6.74 | 6.85 | 7.61 | 8.63 | 8.01 | 7.59 | 8.70 | 7.48 | 7.42 |
| Working capital turnover | 8.45 | 8.47 | 5.26 | 5.53 | 5.65 | 5.48 | 4.78 | 4.18 | 8.57 | 3.31 | 7.31 | 6.81 | 7.35 | 5.61 | 5.83 | 6.89 | 7.07 | 5.26 | 4.24 | 5.74 |
The activity ratios of Brunswick Corp. provide insights into the company's efficiency in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover:
The inventory turnover ratio measures how efficiently the company is managing its inventory. Brunswick Corp.'s inventory turnover has been relatively stable between 3.12 and 3.34 over the past eight quarters, indicating that the company is able to sell and replenish its inventory multiple times a year.
2. Receivables Turnover:
The receivables turnover ratio assesses how effectively the company is collecting on its credit sales. Brunswick Corp.'s receivables turnover has fluctuated between 9.19 and 12.98, with higher values suggesting that the company is collecting its receivables at a faster rate.
3. Payables Turnover:
The payables turnover ratio reflects how quickly the company is paying its suppliers. Brunswick Corp.'s payables turnover has varied between 6.63 and 9.67, with higher values indicating that the company is taking less time to settle its payables.
4. Working Capital Turnover:
The working capital turnover ratio assesses how effectively the company is utilizing its working capital to generate sales. Brunswick Corp.'s working capital turnover has ranged from 4.18 to 8.47, with higher values indicating that the company is efficiently using its working capital to support its operations.
Overall, Brunswick Corp. appears to be managing its inventory, receivables, payables, and working capital efficiently based on the trends observed in its activity ratios over the past eight quarters.
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 | 101.62 | 96.71 | 98.81 | 99.18 | 93.81 | 92.88 | 92.69 | 95.23 | 89.77 | 76.95 | 73.79 | 77.89 | 82.89 | 71.93 | 87.17 | 104.37 | 100.74 | 97.82 | 94.74 | 95.58 |
| Days of sales outstanding (DSO) | days | 28.12 | 31.32 | 33.34 | 37.14 | 29.09 | 30.56 | 34.90 | 39.72 | 30.30 | 29.53 | 34.13 | 40.86 | 28.34 | 35.47 | 42.94 | 42.22 | 29.48 | 36.46 | 41.91 | 43.34 |
| Number of days of payables | days | 38.40 | 33.02 | 36.58 | 39.12 | 42.25 | 41.03 | 43.49 | 46.71 | 51.54 | 48.25 | 51.98 | 54.17 | 53.29 | 47.95 | 42.28 | 45.57 | 48.08 | 41.97 | 48.79 | 49.19 |
The activity ratios for Brunswick Corp. over the past eight quarters show variations in the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH): The DOH indicates the average number of days it takes for the company to sell its inventory. Brunswick Corp.'s DOH has been fluctuating around 110-116 days over the quarters. A higher number of days may suggest slower inventory turnover, potentially tying up capital in the inventory.
2. Days of Sales Outstanding (DSO): The DSO measures the average number of days it takes for the company to collect payment after a sale is made. Brunswick Corp.'s DSO has ranged from 28-37 days during the quarters. Lower DSO is generally preferable as it signifies quicker collections and efficient management of accounts receivable.
3. Number of Days of Payables: This metric represents the number of days it takes for the company to pay its suppliers. Brunswick Corp.'s payables days have varied between 37-55 days. A lower number of days may indicate that the company is promptly settling its payables, while a higher number could signify a more extended period before payment, potentially improving cash flow.
Overall, Brunswick Corp. has demonstrated mixed performance in managing its activity ratios, with varying levels of efficiency in inventory management, accounts receivable collection, and payables payment over the past eight quarters.
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 | 4.87 | 5.05 | 5.12 | 5.30 | 5.36 | 5.45 | 5.49 | 5.67 | 5.58 | 5.80 | 5.90 | 5.52 | 5.03 | 5.01 | 4.72 | 4.96 | 5.16 | 5.44 | 5.65 | 5.98 |
| Total asset turnover | 1.03 | 1.09 | 1.07 | 1.09 | 1.08 | 1.09 | 1.04 | 1.00 | 1.08 | 1.08 | 1.30 | 1.22 | 1.15 | 1.11 | 1.03 | 1.03 | 1.15 | 1.14 | 1.04 | 0.97 |
Based on the provided data, Brunswick Corp.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, have displayed relatively consistent trends over the past eight quarters.
The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. Brunswick's fixed asset turnover has ranged between 4.87 to 5.67 over the period, indicating that for every dollar invested in fixed assets, the company generates between $4.87 to $5.67 in sales. The slight fluctuations in this ratio suggest that Brunswick is effectively managing and utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio evaluates the company's ability to use all its assets to generate sales. Brunswick's total asset turnover has been relatively stable, fluctuating between 1.00 to 1.09. This indicates that for every dollar invested in total assets, Brunswick generates sales ranging from $1.00 to $1.09. The stable nature of this ratio suggests that Brunswick is efficiently using its total assets to generate revenue consistently over the quarters analyzed.
Overall, the analysis of Brunswick Corp.'s long-term activity ratios indicates that the company is effectively utilizing both fixed and total assets to generate sales, showcasing efficient management of its assets to drive revenue growth.