Brunswick Corporation (BC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.02 | 2.75 | 2.77 | 2.82 | 3.12 | 3.30 | 3.25 | 3.27 | 3.33 | 3.36 | 3.36 | 3.25 | 3.46 | 4.20 | 4.54 | 4.48 | 4.40 | 5.07 | 4.19 | 3.50 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.54 | 4.72 | 5.15 | 5.31 | 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 |
The analysis of Brunswick Corporation's activity ratios reveals the following insights:
1. Inventory Turnover:
- Brunswick's inventory turnover has fluctuated over the years, ranging from a low of 2.77 in June 2024 to a high of 5.07 in September 2020.
- Generally, the company has maintained a moderate inventory turnover, indicating that it is effectively managing its inventory levels and efficiently converting inventory into sales.
- The most recent turnover ratio of 3.02 as of December 31, 2024, suggests a slight increase from the previous quarter but is still lower than the historical average.
2. Receivables Turnover:
- The data provided does not include information on receivables turnover, making it difficult to assess Brunswick's efficiency in collecting outstanding receivables.
- Without this ratio, it is challenging to evaluate the company's effectiveness in managing its accounts receivable and collecting payments from customers in a timely manner.
3. Payables Turnover:
- Similar to receivables turnover, there is no data available for payables turnover, which hinders the ability to analyze Brunswick's payment practices and relationships with suppliers.
- Payables turnover is essential for understanding how quickly the company pays its suppliers and how effectively it manages its accounts payable.
4. Working Capital Turnover:
- Brunswick's working capital turnover has shown variations over the reporting periods, indicating changes in how efficiently the company utilizes its working capital to generate sales.
- The turnover ratios have ranged from a low of 3.31 in September 2021 to a high of 8.57 in December 2021, showcasing fluctuations in working capital efficiency.
- The most recent working capital turnover ratio of 3.54 as of December 31, 2024, reflects a decline from the previous quarters, suggesting a potential decrease in sales relative to working capital efficiency.
In conclusion, while Brunswick Corporation has demonstrated solid inventory turnover and working capital turnover ratios, the lack of data on receivables and payables turnover limits a comprehensive assessment of the company's overall activity ratios. It would be beneficial for stakeholders to monitor these ratios closely to gain a more thorough understanding of Brunswick's operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 120.85 | 132.66 | 131.62 | 129.41 | 116.82 | 110.54 | 112.35 | 111.65 | 109.66 | 108.79 | 108.55 | 112.23 | 105.48 | 86.89 | 80.42 | 81.50 | 82.89 | 71.93 | 87.17 | 104.37 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the data provided for Brunswick Corporation, we analyzed the activity ratios focusing on Days of Inventory on Hand (DOH) over the specified time periods.
The DOH for Brunswick Corporation showed fluctuations between 104.37 days on March 31, 2020, and a peak of 132.66 days on September 30, 2024. The trend indicates an increase in the days of inventory on hand during the latter years of the reported period.
Generally, a high DOH suggests that the company may be holding onto excess inventory, which could tie up capital and indicate potential inefficiencies in inventory management. Conversely, a low DOH could indicate that inventory turnover is high, which is generally positive as it shows efficient management of inventory levels.
Given the trend observed, Brunswick Corporation may want to closely monitor their inventory turnover and management practices to optimize working capital and ensure efficient operations.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 4.57 | 4.69 | 4.84 | 4.92 | 5.00 | 5.04 | 5.22 | 5.13 | 5.34 | 5.39 | 5.52 | 5.03 | 5.01 | 4.72 | 4.96 |
| Total asset turnover | 0.92 | 0.90 | 0.90 | 0.93 | 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 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. It is calculated by dividing net sales by average fixed assets. Brunswick Corporation's fixed asset turnover ratio has shown a fluctuating trend over the years, ranging from a high of 5.52 in March 2021 to a low of 4.57 in September 2023.
A high fixed asset turnover ratio indicates that Brunswick Corporation is effectively using its fixed assets to generate sales. The decreasing trend from 2021 to 2023 suggests that the company may have experienced challenges in optimizing the use of its fixed assets during this period.
On the other hand, the total asset turnover ratio evaluates how efficiently a company is utilizing all its assets to generate revenue. It is calculated by dividing net sales by average total assets. Brunswick Corporation's total asset turnover ratio has also shown variation over the years, with a peak of 1.30 in June 2021 and a low of 0.90 in June 2024.
A high total asset turnover ratio indicates that Brunswick Corporation is effectively utilizing all its assets to generate sales. The decrease in the ratio from 2022 to 2024 may indicate potential challenges in efficiently utilizing the company's total assets to generate revenue during this period.
In conclusion, Brunswick Corporation's long-term activity ratios suggest that the company has experienced fluctuations in the efficiency of utilizing both fixed and total assets to generate sales. Management may need to focus on optimizing asset utilization to improve profitability and operational performance in the future.