BWX Technologies Inc (BWXT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 68.46 | 73.40 | 96.55 | 103.21 | 79.59 |
| Receivables turnover | 28.32 | 36.02 | 29.63 | 13.65 | 32.75 |
| Payables turnover | 14.81 | 13.22 | 8.29 | 8.40 | 7.97 |
| Working capital turnover | 5.53 | 5.42 | 6.67 | 8.58 | 8.26 |
The activity ratios provide insight into BWX Technologies Inc's efficiency in managing its assets and liabilities.
1. Receivables Turnover: BWX Technologies Inc's receivables turnover has been relatively stable over the past five years, indicating that the company is efficient in collecting cash from its customers. The increasing trend from 2019 to 2021 suggests an improvement in the company's credit and collection policies.
2. Payables Turnover: The payables turnover ratio shows how quickly BWX Technologies Inc pays its suppliers. The increasing trend in payables turnover from 2019 to 2023 indicates that the company is taking longer to pay its suppliers, which could be beneficial for managing cash flow and relationships with vendors.
3. Working Capital Turnover: The working capital turnover ratio measures the efficiency of BWX Technologies Inc in generating revenue from its working capital. A decreasing trend in this ratio from 2019 to 2023 may indicate a decline in the company's ability to generate sales using its current assets efficiently.
Overall, BWX Technologies Inc's activity ratios suggest a mixed performance in managing its assets and liabilities efficiently. The company should continue to monitor and improve these ratios to ensure optimal utilization of its resources.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.33 | 4.97 | 3.78 | 3.54 | 4.59 |
| Days of sales outstanding (DSO) | days | 12.89 | 10.13 | 12.32 | 26.74 | 11.14 |
| Number of days of payables | days | 24.65 | 27.60 | 44.03 | 43.47 | 45.77 |
Days of inventory on hand (DOH) for BWX Technologies Inc is not provided in the table, which would have shown how many days the company takes to sell its inventory. A lower number for DOH would indicate efficient inventory management.
Days of sales outstanding (DSO) measures how quickly the company collects cash after making a sale. In this case, DSO has been gradually decreasing over the years from 39.67 days in 2020 to 20.72 days in 2023. This suggests that BWX Technologies Inc has been improving its collection efficiency.
The number of days of payables measures how long it takes for the company to pay its suppliers. A decrease in this ratio is generally positive, as it allows the company to hold onto cash longer. BWX Technologies Inc has managed to reduce this ratio from 45.77 days in 2019 to 24.65 days in 2023.
In summary, BWX Technologies Inc has shown improvement in both its collection efficiency and payables management over the years, which indicates a positive trend in its activity ratios.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.99 | 1.93 | 2.00 | 2.56 | 3.20 |
| Total asset turnover | 0.89 | 0.84 | 0.84 | 0.91 | 0.97 |
The fixed asset turnover ratio for BWX Technologies Inc has shown a fluctuating trend over the past five years, decreasing from 3.27 in 2019 to 2.03 in 2023. This indicates that the company's ability to generate sales from its fixed assets has declined over the period. The decreasing trend may suggest inefficiencies in the utilization of fixed assets or a slowdown in sales growth relative to the investment in fixed assets.
On the other hand, the total asset turnover ratio has also exhibited a declining trend, falling from 0.99 in 2019 to 0.91 in 2023. This indicates that BWX Technologies Inc is generating fewer sales relative to its total assets in recent years. A lower total asset turnover ratio could imply that the company's assets are not being efficiently utilized to generate revenue, or there may be challenges in effectively managing the company's asset base.
In conclusion, the decreasing trends in both the fixed asset turnover and total asset turnover ratios for BWX Technologies Inc suggest potential inefficiencies in asset utilization and a need for the company to improve its operational efficiency to enhance its revenue generation from assets.