CNH Industrial N.V. (CNH)

Short-term

Turnover ratios

CNH Industrial N.V.'s activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. CNH Industrial N.V.'s inventory turnover has shown a slight decrease from 3.57 in 2020 to 2.80 in 2024. This indicates that the company took longer to sell its inventory in 2024 compared to 2020.

2. Receivables Turnover: The receivables turnover ratio shows how efficiently a company collects on its credit sales. In this case, the data shows that CNH Industrial N.V. did not have available information on receivables turnover for the years provided, which limits the analysis of their efficiency in collecting outstanding receivables.

3. Payables Turnover: The payables turnover ratio indicates how quickly a company pays its suppliers. Similarly, CNH Industrial N.V. did not provide data on payables turnover for the years under consideration, making it challenging to assess the efficiency of their payables management.

4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company utilizes its working capital to generate revenue. CNH Industrial N.V.'s working capital turnover fluctuated over the years, ranging from 0.98 in 2021 to 1.79 in 2020. This variability suggests changes in how efficiently the company managed its working capital to support its operations and sales activities.

In conclusion, while CNH Industrial N.V. demonstrated fluctuations in its activity ratios over the years, there were limitations in the availability of data for receivables and payables turnover, which could offer a more comprehensive assessment of the company's overall efficiency in managing its assets and liabilities.

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Average number of days

The activity ratios of CNH Industrial N.V. indicate the efficiency of the company in managing its inventory, sales, and payables.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have shown an increasing trend over the years, from 102.33 days as of December 31, 2020, to 130.58 days as of December 31, 2024. This indicates that the company is taking longer to sell its inventory, which may suggest either overstocking or difficulty in selling products.

2. Days of Sales Outstanding (DSO):
- The data provided does not contain information on the days of sales outstanding, which would have revealed the average number of days it takes for the company to collect its accounts receivable. Absence of this data makes it challenging to evaluate the efficiency of the company in collecting its sales revenue.

3. Number of Days of Payables:
- Similarly, information on the number of days of payables is not available in the data provided. This ratio would have helped in understanding how long the company takes to pay its suppliers, impacting its working capital management.

In conclusion, despite the lack of complete data, the increasing trend in the days of inventory on hand raises concerns about the company's inventory management efficiency. It would be beneficial for CNH Industrial N.V. to focus on optimizing its inventory levels to improve its overall operational efficiency and financial performance.

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Long-term

The fixed asset turnover ratio for CNH Industrial N.V. remained constant at a value of "-" (not available) from December 31, 2020, to December 31, 2024. This indicates that the company's ability to generate sales revenue from its fixed assets could not be determined based on the provided data.

In terms of total asset turnover, CNH Industrial N.V. experienced fluctuations in its efficiency of asset utilization over the same period. The total asset turnover ratio was 0.53 in December 31, 2020, decreased to 0.39 in December 31, 2021, increased to 0.60 in December 31, 2022, and then decreased to 0.53 in December 31, 2023, and further dropped to 0.46 in December 31, 2024.

The declining trend in total asset turnover from 2020 to 2024 suggests that the company may be experiencing challenges in efficiently using its total assets to generate sales revenue. This could be a reflection of inefficiencies in the company's operations or changes in its business strategy that have impacted its asset utilization effectiveness. Further analysis and comparisons with industry benchmarks would be necessary to gain a more comprehensive understanding of CNH Industrial N.V.'s long-term activity performance.