Brinks Company (BCO)

Short-term

Turnover ratios

Based on the provided data for Brinks Company, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a period.
- Brinks Company's inventory turnover decreased from 10.31 in 2020 to 9.71 in 2021, signaling a slightly lower rate of inventory turnover.
- There is no data available for 2022, and the ratio further decreased to 7.31 in 2023.
- However, there was a significant spike in inventory turnover to 154.04 in 2024, which could indicate either improved inventory management or a change in business operations.

2. Receivables Turnover:
- Receivables turnover ratio indicates how efficiently a company collects on its credit sales.
- There is no data available for receivables turnover for any year mentioned in the dataset, which limits our ability to assess Brinks' effectiveness in collecting receivables.

3. Payables Turnover:
- The payables turnover ratio reflects how quickly a company pays its suppliers.
- Similar to receivables turnover, there is no data provided for payables turnover for any year, so we cannot evaluate Brinks' payment practices to suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how well a company utilizes its working capital to generate revenue.
- Brinks Company's working capital turnover ranged from 4.74 in 2022 to 6.00 in 2021, suggesting variations in efficiency in utilizing working capital.
- The company saw a slight increase in the ratio from 5.07 in 2024, indicating that Brinks was able to generate revenue more efficiently using its working capital that year.

In summary, based on the available data, Brinks Company's inventory turnover fluctuated over the years, with a significant increase observed in 2024. However, the lack of data for receivables and payables turnover ratios limits our ability to comprehensively assess the company's efficiency in managing receivables and payables. The working capital turnover ratio showed variability but also indicated an improvement in revenue generation efficiency in 2024.

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Average number of days

Based on the data provided for Brinks Company, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The company's DOH has shown an increasing trend from 35.41 days on December 31, 2020, to 37.61 days on December 31, 2021, and further to 49.92 days on December 31, 2023. There was a significant decrease to 2.37 days on December 31, 2024, suggesting a potential improvement in inventory management efficiency. However, the data for December 31, 2022, is missing, limiting a comprehensive trend analysis.

2. Days of Sales Outstanding (DSO):
- The DSO data for all years is marked as "— days," indicating that specific information regarding this ratio is not available. Without this data, it is challenging to assess the level of accounts receivable management efficiency.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is also marked as "— days" across all years. This indicates that information related to the company's accounts payable turnover is not provided. Without this data, evaluating the efficiency of the company's payment processes to suppliers is not feasible.

In conclusion, based on the available data, Brinks Company exhibits a mixed performance in managing its inventory levels, with an improving trend in 2024. However, the absence of DSO and payables turnover data limits a comprehensive assessment of the company's overall activity ratios and working capital management. Further information on sales outstanding and payables turnover would be beneficial for a more detailed analysis of Brinks Company's operational efficiency.

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Long-term

Brinks Company's long-term activity ratios can provide insight into how efficiently the company is utilizing its assets to generate sales.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.
- In 2020, the fixed asset turnover ratio was 4.40, which means that for every dollar invested in fixed assets, the company generated $4.40 in sales.
- In 2021, the ratio decreased to 3.61, suggesting a decline in the efficiency of utilizing fixed assets to generate revenue.
- The ratio showed improvement in 2022, reaching 4.85, indicating better efficiency in using fixed assets for generating sales.
- However, there is no data available for 2023 and 2024, so we cannot assess the trend for those years.

2. Total Asset Turnover:
- The total asset turnover ratio measures how effectively a company is using all its assets to generate revenue. A higher ratio indicates better asset utilization.
- In 2020, the total asset turnover ratio was 0.72, meaning that the company generated $0.72 in sales for every dollar of assets it owned.
- The ratio slightly increased to 0.75 in 2021, signaling a modest improvement in asset utilization for revenue generation.
- However, in 2022, the ratio declined to 0.71, indicating a decrease in the efficiency of using total assets to generate sales.
- The ratio improved slightly in 2023 and 2024, with values of 0.74 and 0.76, respectively, suggesting better asset management in those years.

Overall, the analysis of Brinks Company's long-term activity ratios reveals fluctuations in the efficiency of utilizing fixed and total assets to generate sales over the years. The company should focus on maintaining or improving these ratios to ensure optimal asset utilization and revenue generation.