Church & Dwight Company Inc (CHD)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 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 5.69 6.05 5.85 5.82
Receivables turnover 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 12.23 11.15 11.04 10.88
Payables turnover 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 5.02 5.24 5.00 5.35
Working capital turnover 54.48 10.38 12.40 26.48 25.34 46.65 221.86 — — — — — — 10.04 16.40 74.89 — — — —

Church & Dwight Co., Inc.'s activity ratios provide insights into how efficiently the company manages its resources and operations.

1. Inventory Turnover: The inventory turnover ratio indicates the number of times a company sells and replaces its inventory during a specific period. Church & Dwight's inventory turnover has been relatively stable, ranging between 4.77 and 5.35 over the past eight quarters. This suggests that the company is effectively managing its inventory levels, with a positive trend indicating efficient inventory management.

2. Receivables Turnover: The receivables turnover ratio measures how many times a company collects its accounts receivable during a period. Church & Dwight's receivables turnover has fluctuated but remained within a consistent range of 11.14 to 13.57 over the same period. A higher turnover ratio indicates effective credit management and timely collections, which can positively impact cash flow.

3. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers or vendors. Church & Dwight's payables turnover has also varied but stayed within a range of 4.55 to 5.20 over the past eight quarters. A higher turnover ratio suggests the company is efficiently managing its payables, potentially benefiting from favorable credit terms.

4. Working Capital Turnover: The working capital turnover ratio evaluates the efficiency of a company in utilizing its working capital to generate revenue. Church & Dwight's working capital turnover has shown significant fluctuations, with values ranging from 10.38 to 221.86 in the available data. A higher turnover ratio indicates effective utilization of working capital to generate sales, while drastic changes may warrant further investigation into the company's operational efficiency.

Overall, Church & Dwight Co., Inc.'s activity ratios demonstrate a consistent or improving efficiency in managing its inventory, receivables, and payables, with some fluctuations in working capital turnover. Monitoring these ratios over time can provide valuable insights into the company's operational effectiveness and potential areas for improvement.

Average number of days

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 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 64.18 60.30 62.38 62.73
Days of sales outstanding (DSO) days 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 29.85 32.72 33.06 33.55
Number of days of payables days 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 72.78 69.63 72.94 68.27

Church & Dwight Co., Inc. has shown some fluctuations in its activity ratios over the quarters.

1. Days of inventory on hand (DOH) has displayed some variability but generally remained within the range of 68 to 80 days over the past eight quarters. The lowest DOH was recorded in Q4 2023 at 68.26 days, indicating efficient management of inventory, while the highest was in Q3 2022 at 80.04 days, suggesting potential inefficiencies in inventory turnover during that period.

2. Days of sales outstanding (DSO) has shown a relatively stable trend, hovering between 26.91 and 32.77 days. Lower DSO values, such as the lowest value of 26.91 days in Q3 2022, represent a faster collection of receivables, reflecting effective credit management. Conversely, the highest DSO of 32.77 days in Q4 2023 suggests a slight delay in receiving payments from customers during that quarter.

3. The number of days of payables has also varied, ranging from 70 to 80 days. The lowest number of days of payables was observed in Q4 2023 at 70.19 days, indicating a shorter time frame for settling payables, which could be beneficial for cash flow management. On the other hand, the highest number of days of payables occurred in Q2 2022 at 80.14 days, reflecting potential challenges in managing payment terms with suppliers during that period.

Overall, Church & Dwight Co., Inc. should aim to optimize its activity ratios, such as reducing inventory holding periods, maintaining efficient receivables collection, and effectively managing payables to enhance working capital management and overall operational efficiency.

Long-term

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 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 7.28 7.75 7.58 7.49
Total asset turnover 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 0.65 0.65 0.64 0.70

Church & Dwight Co., Inc. has shown consistent efficiency in utilizing its fixed assets to generate sales revenue over the past several quarters, as indicated by the increasing trend in the fixed asset turnover ratio from Q1 2022 to Q4 2023. The company's fixed asset turnover ratio has ranged from 6.33 to 8.03 during this period.

Moreover, the total asset turnover ratio has also demonstrated relative stability, with values fluctuating around 0.64 to 0.68 over the same quarters. This suggests that Church & Dwight is effectively using its total assets (both fixed and current) to generate sales.

Overall, the data indicates that Church & Dwight Co., Inc. has been efficient in generating revenue relative to its investment in both fixed and total assets, reflecting strong operational performance in utilizing its long-term resources to drive sales growth.