BWX Technologies Inc (BWXT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 50.83 | 68.46 | 73.40 | 96.55 | 103.21 |
| Receivables turnover | 17.73 | 28.32 | 36.02 | 29.63 | 13.65 |
| Payables turnover | 12.96 | 14.81 | 13.22 | 8.29 | 8.40 |
| Working capital turnover | 5.93 | 5.53 | 5.42 | 6.67 | 8.58 |
BWX Technologies Inc's activity ratios provide insights into how efficiently the company is managing its assets and operations.
1. Inventory turnover: This ratio measures the number of times inventory is sold and replaced during a specific period. The trend for BWX Technologies Inc's inventory turnover shows a gradual decline from 103.21 in 2020 to 50.83 in 2024. A lower inventory turnover may indicate excess inventory, underperforming products, or inefficiencies in managing inventory levels.
2. Receivables turnover: The receivables turnover ratio indicates how quickly the company is collecting on credit sales. BWX Technologies Inc's receivables turnover increased significantly from 13.65 in 2020 to 36.02 in 2022 but then decreased to 17.73 in 2024. A higher receivables turnover suggests efficient credit management and timely collection of receivables.
3. Payables turnover: This ratio reflects how quickly the company pays its suppliers. BWX Technologies Inc's payables turnover increased from 8.40 in 2020 to 14.81 in 2023 before slightly decreasing to 12.96 in 2024. A higher payables turnover implies better cash flow management and potentially favorable payment terms with suppliers.
4. Working capital turnover: This ratio assesses how effectively the company is utilizing its working capital to generate sales. BWX Technologies Inc's working capital turnover declined from 8.58 in 2020 to 5.93 in 2024. A decreasing trend in working capital turnover may indicate inefficiencies in utilizing working capital resources to drive sales growth.
Overall, BWX Technologies Inc's activity ratios demonstrate varying levels of efficiency in managing inventory, receivables, payables, and working capital. Analyzing these ratios over time can provide valuable insights into the company's operational performance and potential areas for improvement.
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 | 7.18 | 5.33 | 4.97 | 3.78 | 3.54 |
| Days of sales outstanding (DSO) | days | 20.58 | 12.89 | 10.13 | 12.32 | 26.74 |
| Number of days of payables | days | 28.17 | 24.65 | 27.60 | 44.03 | 43.47 |
BWX Technologies Inc's activity ratios provide insight into its efficiency in managing inventory, sales, and accounts payable.
1. Days of Inventory on Hand (DOH): The company's DOH has shown an increasing trend from 3.54 days in December 2020 to 7.18 days in December 2024. This indicates that BWX Technologies is holding onto its inventory for longer periods over the years, which may tie up capital and result in higher carrying costs.
2. Days of Sales Outstanding (DSO): The DSO ratio fluctuates during the period under review, with a decrease from 26.74 days in December 2020 to 10.13 days in December 2022, before rising to 20.58 days by December 2024. A lower DSO suggests that the company is collecting receivables more quickly, which is positive, while a higher DSO in 2024 may indicate potential issues with collecting sales revenues.
3. Number of Days of Payables: BWX Technologies has managed to reduce its payables period from 43.47 days in December 2020 to 28.17 days by December 2024. This decreasing trend suggests that the company is taking longer to pay its suppliers, potentially improving cash flow management.
Overall, these activity ratios indicate that BWX Technologies Inc has been experiencing changes in its inventory management, sales collection efficiency, and payment periods. An in-depth analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's operational performance.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.11 | 1.99 | 1.93 | 2.00 | 2.56 |
| Total asset turnover | 0.94 | 0.89 | 0.84 | 0.84 | 0.91 |
Long-term activity ratios provide insights into how efficiently a company is utilizing its long-term assets to generate revenues. Let's analyze the long-term activity ratios of BWX Technologies Inc based on the provided data.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company is using its fixed assets to generate sales.
- In 2020, the company had a fixed asset turnover of 2.56, indicating that for every dollar invested in fixed assets, the company generated $2.56 in sales.
- The ratio decreased in 2021 to 2.00, and further declined to 1.93 in 2022, showing a reduction in efficiency in utilizing fixed assets to generate revenue.
- However, the ratio slightly improved in 2023 and 2024 to 1.99 and 2.11, respectively, suggesting a better utilization of fixed assets in revenue generation in those years.
2. Total Asset Turnover:
- The total asset turnover ratio indicates how well a company is using its total assets to generate sales.
- In 2020, the total asset turnover was 0.91, meaning that for every dollar of total assets, the company generated $0.91 in sales.
- The ratio decreased slightly in 2021 and 2022 to 0.84, indicating a decline in efficiency in utilizing total assets to generate revenue during those years.
- The total asset turnover ratio then improved in 2023 and 2024 to 0.89 and 0.94, respectively, suggesting a better utilization of total assets in generating sales in those later years.
In summary, the analysis of BWX Technologies Inc's long-term activity ratios shows fluctuations in the efficiency of utilizing both fixed assets and total assets to generate revenue over the years. The company experienced variations in asset turnover ratios, implying changes in operational efficiency and productivity in utilizing assets for revenue generation during the period under review.