Church & Dwight Company Inc (CHD)

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	5.41	5.00	5.22	5.52	5.35	4.86	4.77	4.88	4.83	4.56	4.59	4.98	5.47	5.21	5.07	5.06	5.41	5.15	5.42	6.15
Receivables turnover	10.16	10.90	10.20	10.89	11.14	12.53	12.23	12.83	12.74	13.57	13.07	12.89	12.80	12.57	13.07	12.25	12.28	12.73	13.33	12.67
Payables turnover	4.70	4.66	4.86	5.08	5.20	4.72	4.76	4.89	4.69	4.70	4.56	4.55	4.41	4.66	4.98	5.00	4.56	4.41	4.78	5.29
Working capital turnover	6.60	7.86	9.91	15.50	54.48	10.38	12.40	26.48	25.34	46.65	221.86	—	—	—	—	—	—	10.04	16.40	74.89

Church & Dwight Company Inc's inventory turnover has shown a gradual decline over the past few years, indicating that the company is selling its inventory at a slower rate. This might suggest potential issues with managing inventory levels efficiently.

On the other hand, the receivables turnover ratio has fluctuated over the years but generally remained at a moderate level. This shows that the company is collecting its receivables in a timely manner, although there were some periods of lower turnover which could indicate potential credit or collection issues.

The payables turnover ratio has also experienced some fluctuations but has generally remained relatively stable. The company is effectively managing its payables, with consistent turnover rates over the years.

The working capital turnover ratio has displayed significant variability, indicating fluctuations in the efficiency with which the company is utilizing its working capital to generate sales. This ratio spiked in certain periods, reflecting potential changes in the company's working capital management strategies.

Overall, analyzing these activity ratios provides insights into Church & Dwight Company Inc's operational efficiency and effectiveness in managing its inventory, receivables, payables, and working capital.

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	67.49	73.06	69.98	66.10	68.26	75.06	76.46	74.78	75.51	80.04	79.49	73.26	66.77	70.12	71.92	72.20	67.43	70.85	67.32	59.36
Days of sales outstanding (DSO)	days	35.91	33.48	35.77	33.51	32.77	29.13	29.84	28.45	28.65	26.91	27.93	28.31	28.52	29.03	27.93	29.81	29.73	28.68	27.38	28.81
Number of days of payables	days	77.59	78.32	75.10	71.87	70.19	77.31	76.72	74.58	77.86	77.70	80.00	80.14	82.79	78.34	73.35	73.00	80.05	82.68	76.36	69.02

The activity ratios of Church & Dwight Company Inc for the period from March 31, 2020, to December 31, 2024, provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows fluctuations over the period, ranging from a low of 59.36 days on March 31, 2020, to a high of 80.04 days on September 30, 2022.
- A rising trend in DOH may indicate slower inventory turnover and potential issues with inventory management efficiency.
- The company should focus on maintaining an optimal level of inventory to meet customer demand while minimizing holding costs.

2. Days of Sales Outstanding (DSO):
- The DSO fluctuated during the period, with a range from 26.91 days on September 30, 2022, to 35.91 days on December 31, 2024.
- A decreasing trend in DSO indicates that the company is collecting receivables more efficiently, while an increasing trend may suggest deteriorating credit quality or collection practices.
- Church & Dwight should continue to monitor and improve its accounts receivable management processes to ensure timely collection of payments.

3. Number of Days of Payables:
- The number of days of payables ranged from 69.02 days on March 31, 2020, to 82.79 days on December 31, 2021, before decreasing to 77.59 days on December 31, 2024.
- A longer payment period may indicate better cash flow management but could also strain relationships with suppliers.
- It is essential for the company to strike a balance between extending payment terms to preserve cash and maintaining positive supplier relationships.

Overall, analyzing these activity ratios can help Church & Dwight Company Inc identify areas for improvement in managing inventory, accounts receivable, and accounts payable to enhance operational efficiency and financial performance.

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	6.55	6.61	6.36	6.33	6.33	6.70	7.03	7.13	7.06	7.41	8.03	8.03	7.95	8.31	8.23	8.12	7.99	8.19	8.08	7.90
Total asset turnover	0.69	0.70	0.68	0.69	0.68	0.66	0.66	0.67	0.64	0.64	0.63	0.66	0.65	0.69	0.68	0.67	0.66	0.67	0.66	0.60

The Fixed Asset Turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. Church & Dwight Company Inc's Fixed Asset Turnover ratio has been fluctuating over the years, starting at 7.90 in March 2020 and peaking at 8.31 in September 2021. However, the ratio has been declining since then, reaching 6.55 by December 2024. This downward trend could indicate a decrease in efficiency in utilizing fixed assets to generate sales.

On the other hand, the Total Asset Turnover ratio reflects the company's overall efficiency in generating sales from all its assets. Church & Dwight Company Inc's Total Asset Turnover ratio has also varied throughout the period, ranging from 0.60 in March 2020 to 0.70 in September 2024. The ratio generally shows an increasing trend, suggesting that the company has been more efficient in utilizing all its assets to generate sales over time.

In summary, while the Fixed Asset Turnover ratio for Church & Dwight Company Inc has shown a declining trend, indicating potential inefficiencies in utilizing fixed assets, the Total Asset Turnover ratio has been on an increasing trend, reflecting improving overall efficiency in generating sales from all assets.