Belden Inc (BDC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.48 | 4.24 | 4.95 | 4.43 | 4.76 |
| Receivables turnover | 6.01 | 6.07 | 5.92 | 6.00 | 5.90 |
| Payables turnover | 4.87 | 4.54 | 4.83 | 4.05 | 4.82 |
| Working capital turnover | 4.29 | 3.05 | 2.91 | 2.05 | 3.03 |
Belden Inc's activity ratios provide insight into the efficiency with which the company manages its working capital components.
1. Inventory Turnover: Belden Inc's inventory turnover ratio has been consistently between 4.24 and 4.95 over the past five years. This indicates that, on average, the company is able to sell and replace its inventory approximately 4 to 5 times a year. A higher turnover ratio suggests efficient inventory management.
2. Receivables Turnover: The receivables turnover ratio for Belden Inc has ranged from 5.90 to 6.07 during the same period. This indicates that the company collects its accounts receivable approximately 6 times a year on average. A higher turnover ratio implies effective credit and collection policies.
3. Payables Turnover: Belden Inc's payables turnover ratio has varied from 4.05 to 4.87 over the five-year period. The ratio shows how many times the company pays its suppliers during the year. A higher turnover ratio may indicate that the company is efficiently managing its trade credit terms.
4. Working Capital Turnover: The working capital turnover ratio for Belden Inc has fluctuated between 2.05 and 4.29 over the last five years. This ratio measures how efficiently the company generates revenue from its working capital. An increasing trend in this ratio suggests improved efficiency in the utilization of working capital.
Overall, Belden Inc's activity ratios reflect a generally stable and efficient management of its working capital components, including inventory, receivables, and payables. The company's consistency in maintaining these ratios within a certain range indicates a degree of operational effectiveness in managing its assets and liabilities to support its revenue generation.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 81.38 | 86.02 | 73.76 | 82.38 | 76.72 |
| Days of sales outstanding (DSO) | days | 60.77 | 60.13 | 61.63 | 60.82 | 61.83 |
| Number of days of payables | days | 74.89 | 80.45 | 75.60 | 90.15 | 75.73 |
Belden Inc's activity ratios provide insight into how efficiently the company manages its operations.
1. Days of Inventory on Hand (DOH) measures how many days it takes for Belden to sell its inventory. The trend shows an increase in inventory holding period from 76.72 days in 2020 to 86.02 days in 2023, indicating a potential inefficiency in inventory management. However, in 2024, the DOH decreased to 81.38 days, suggesting a more efficient inventory turnover.
2. Days of Sales Outstanding (DSO) reflects the average number of days it takes for Belden to collect its accounts receivable. The DSO remained relatively stable, ranging from 60.13 to 61.83 days over the years. Consistent DSO indicates Belden's effective credit and collection policies.
3. Number of Days of Payables reflects how long it takes for Belden to pay its suppliers. The trend shows fluctuations in the payment period, with a significant increase in 2021 (90.15 days) followed by a decrease in 2024 (74.89 days). These variations suggest changes in Belden's payment terms and relationships with suppliers.
Overall, analyzing these activity ratios together provides a comprehensive view of Belden's management of inventory, accounts receivable, and accounts payable, highlighting areas of strength and potential areas for improvement in operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 4.97 | 5.57 | 6.83 | 6.70 | 4.75 |
| Total asset turnover | 0.74 | 0.78 | 0.82 | 0.67 | 0.56 |
Belden Inc's fixed asset turnover ratio has shown an increasing trend over the past five years. It improved from 4.75 in 2020 to 6.83 in 2022, indicating that the company generated $6.83 in sales for every dollar invested in fixed assets in 2022. However, there was a slight decrease in 2023 and 2024 to 5.57 and 4.97 respectively.
In contrast, the total asset turnover ratio of Belden Inc has been more volatile during the same period. It increased from 0.56 in 2020 to 0.82 in 2022, suggesting that the company generated $0.82 in sales for every dollar of total assets in 2022. However, there was a drop in 2023 and 2024 to 0.78 and 0.74, indicating a decrease in efficiency in utilizing its total assets to generate sales.
Overall, the company's fixed asset turnover has shown a more consistent improvement compared to total asset turnover, which indicates that Belden Inc has been effectively utilizing its fixed assets to generate sales, although there is room for improvement in efficiently utilizing its total assets for revenue generation.