BWX Technologies Inc (BWXT)

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 50.83 59.55 64.50 47.45 68.46 57.04 58.46 56.91 73.40 52.22 61.95 95.53 96.55 103.66 105.19 111.40 103.21 115.03 123.28 124.99
Receivables turnover 17.69 25.18 24.14 25.52 28.45 19.34 35.71 31.24 36.32 30.05 25.01 35.62 29.65 36.06 34.12 35.98 13.69 23.96 31.29 31.63
Payables turnover 12.96 12.97 12.68 13.29 14.81 11.90 12.22 12.41 13.22 11.33 10.81 11.24 8.29 11.20 10.82 10.54 8.40 9.20 10.46 11.69
Working capital turnover 5.91 4.90 5.15 5.23 5.56 4.48 4.67 4.46 5.47 4.91 4.85 5.47 6.67 4.95 17.23 5.87 8.61 6.25 8.16 5.80

The activity ratios of BWX Technologies Inc provide insights into how efficiently the company manages its assets and operations. Here is a detailed analysis based on the provided data:

1. Inventory Turnover: The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a specific period. BWX Technologies Inc's inventory turnover has shown a generally declining trend over the years, from a high of around 124.99 in March 2020 to approximately 50.83 in December 2024. This decreasing trend may suggest potential issues such as slow-moving inventory or overstocking, which could impact the company's liquidity and profitability.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company collects its accounts receivable. BWX Technologies Inc's receivables turnover ratio fluctuates throughout the periods provided, ranging from a low of 13.69 in December 2020 to a high of 36.32 in December 2022. A higher turnover ratio indicates that the company is collecting its receivables more quickly, which may improve its cash flow and reduce the risk of bad debts.

3. Payables Turnover: The payables turnover ratio reflects how efficiently a company manages its accounts payable by paying off its suppliers. BWX Technologies Inc's payables turnover ratio has varied over time, with a range from 8.29 in December 2021 to 14.81 in December 2023. A higher turnover ratio suggests that the company is paying its suppliers more frequently, which could indicate strong supplier relationships but may also impact liquidity if payments are made too quickly.

4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales. BWX Technologies Inc's working capital turnover has fluctuated between periods, with values ranging from 4.46 to 17.23. A higher ratio indicates that the company is efficiently using its working capital to support its operations and generate revenue.

Overall, by analyzing these activity ratios, investors and stakeholders can assess BWX Technologies Inc's operational efficiency, financial health, and potential areas for improvement in managing its assets and operations.

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 7.18 6.13 5.66 7.69 5.33 6.40 6.24 6.41 4.97 6.99 5.89 3.82 3.78 3.52 3.47 3.28 3.54 3.17 2.96 2.92
Days of sales outstanding (DSO) days 20.64 14.49 15.12 14.30 12.83 18.87 10.22 11.68 10.05 12.15 14.60 10.25 12.31 10.12 10.70 10.14 26.66 15.24 11.66 11.54
Number of days of payables days 28.17 28.15 28.79 27.47 24.65 30.66 29.86 29.42 27.60 32.21 33.77 32.48 44.03 32.60 33.73 34.64 43.47 39.66 34.90 31.21

Based on the provided data for BWX Technologies Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The trend of DOH shows a gradual increase from March 31, 2020, to June 30, 2022.
- A sudden spike is observed on September 30, 2022, and December 31, 2022.
- The DOH ratio fluctuates between 2.92 days on March 31, 2020, and 7.69 days on March 31, 2024.
- Generally, an increasing trend in DOH suggests inefficiency in managing inventory levels.

2. Days of Sales Outstanding (DSO):
- DSO fluctuates with varying levels over the period.
- There is significant variation from the lowest of 10.05 days on December 31, 2022, to the highest of 26.66 days on December 31, 2020.
- The trend is relatively inconsistent, indicating fluctuations in the company's accounts receivables management.

3. Number of Days of Payables:
- Days of payables show a mixed trend over the period, with fluctuations observed.
- The ratio ranges from 24.65 days on December 31, 2023, to 44.03 days on December 31, 2021.
- A lower number of days of payables is generally favorable for the company as it indicates a more prolonged period to pay suppliers, providing liquidity benefits.

In conclusion, BWX Technologies Inc's activity ratios reflect mixed performance in managing inventory, receivables, and payables over the period, with fluctuations and occasional spikes observed in the ratios. The company may need to focus on improving inventory turnover, accounts receivables collection efficiency, and optimizing payment terms with suppliers for better working capital management.

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 2.11 2.10 2.08 2.03 2.00 1.99 1.94 1.95 1.95 2.01 1.97 1.96 2.00 2.09 2.21 2.36 2.57 2.86 3.09 3.36
Total asset turnover 0.94 0.91 0.91 0.90 0.90 0.85 0.84 0.82 0.84 0.81 0.79 0.82 0.84 0.83 0.81 0.89 0.92 0.96 1.03 1.01

The Fixed Asset Turnover ratio for BWX Technologies Inc has been gradually decreasing from 3.36 in March 2020 to 2.11 in December 2024. This suggests that the company is generating less revenue per dollar of fixed assets over time, indicating potential inefficiencies in utilizing its fixed assets.

On the other hand, the Total Asset Turnover ratio has been fluctuating, starting at 1.01 in March 2020, reaching a low of 0.79 in June 2022, and then slightly improving to 0.94 by December 2024. This ratio measures the company's ability to generate sales from its total assets. The fluctuations may indicate changes in the company's sales volume relative to its asset base.

Overall, the decreasing trend in fixed asset turnover and the fluctuating trend in total asset turnover may indicate that BWX Technologies Inc should focus on optimizing its asset utilization to improve overall operational efficiency and profitability.