CNH Industrial N.V. (CNH)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.48 | 2.63 | 2.65 | 3.04 | 2.65 | 2.68 | 2.86 | 3.49 | 2.96 | 2.77 | 2.67 | 3.35 | 0.85 | 1.10 | 1.40 | 1.85 | 3.09 | 2.99 | 2.86 | 3.08 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 2.60 | 2.69 | 2.39 | 2.34 | 2.46 | 2.40 | 2.43 | 2.37 | 3.93 | 3.86 | 3.58 | 2.31 | 1.46 | 1.52 | 1.67 | 1.67 | 1.80 | 1.77 | 2.29 | 2.24 |
The inventory turnover ratio for CNH Industrial N.V. has seen fluctuations over the periods analyzed, ranging from 0.85 to 3.49. The ratio indicates how efficiently the company is managing its inventory by revealing how many times it sells and replaces its inventory during a specific period. A higher ratio is generally favorable as it suggests faster turnover and better inventory management.
Regarding receivables and payables turnover ratios, the data provided does not include any values for these metrics, indicating that the company may not report these ratios, or the information is not available for analysis. Receivables turnover ratio measures how efficiently a company collects on its credit sales, while payables turnover ratio assesses how quickly a company pays off its suppliers.
The working capital turnover ratio, which evaluates how well the company utilizes its working capital to generate sales, has also shown variability over the periods examined, ranging from 1.46 to 3.93. A higher ratio is usually preferred as it signifies that the company is generating more revenue relative to its working capital.
Overall, analyzing these activity ratios provides insight into CNH Industrial N.V.'s operational efficiency and effectiveness in managing its inventory and working capital. Additional information on receivables and payables turnover ratios would offer a more comprehensive view of the company's overall financial performance and liquidity management.
Average number of days
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 146.92 | 138.70 | 137.56 | 120.20 | 137.52 | 135.98 | 127.54 | 104.54 | 123.37 | 131.77 | 136.62 | 109.07 | 430.99 | 331.10 | 260.66 | 197.10 | 118.31 | 121.88 | 127.53 | 118.40 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for CNH Industrial N.V. have shown some fluctuation over the periods analyzed. The company had an average of 131.45 days of inventory on hand, with the highest being 430.99 days on September 30, 2021, and the lowest at 104.54 days on December 31, 2022. These variations may indicate changes in the company's inventory management efficiency and production levels over time.
On the other hand, there is no data available for Days of Sales Outstanding (DSO) and Number of Days of Payables for CNH Industrial N.V., which limits the comprehensive analysis of the company's overall activity ratios. Typically, DSO and payables days are crucial indicators of a company's receivables and payables management effectiveness, respectively.
Since DSO and payables days information is missing, it is recommended that CNH Industrial N.V. provide this data in the future to allow for a more thorough evaluation of its operating cycle, working capital management, and overall efficiency in converting inventory into sales and cash.
Long-term
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 10.99 | 12.09 | 12.70 | 12.90 | 14.78 | 15.05 | 15.41 | 15.37 | 25.64 | 24.41 | 23.22 | 22.66 | 4.97 | 5.23 | 5.43 | 5.32 | 5.56 | 5.64 | 5.54 | 5.33 |
| Total asset turnover | 0.49 | 0.53 | 0.53 | 0.53 | 0.58 | 0.58 | 0.60 | 0.60 | 1.00 | 0.98 | 0.93 | 4.92 | 0.48 | 0.50 | 0.53 | 0.54 | 0.56 | 0.56 | 0.62 | 0.59 |
The fixed asset turnover ratio for CNH Industrial N.V. has been fluctuating over the periods analyzed. The ratio indicates how efficiently the company is utilizing its fixed assets to generate sales. Generally, a higher fixed asset turnover ratio is desirable as it implies that the company is generating more revenue per unit of fixed assets.
From the data, we can see that the fixed asset turnover ratio ranged from 4.97 to 25.64 over the past few quarters. The company's fixed asset turnover has shown an increasing trend from 2019 to 2022, reaching its peak in September 2022 at 25.64. However, there was a slight decline in the ratio in the subsequent periods, indicating a potential decrease in the efficiency of utilizing fixed assets to generate sales.
On the other hand, the total asset turnover ratio has also fluctuated over the periods analyzed. This ratio measures how effectively the company is using its total assets to generate revenue. A higher total asset turnover ratio suggests that the company is more efficient in generating sales with its total assets.
CNH Industrial N.V.'s total asset turnover ratio ranged from 0.48 to 1.00 during the analyzed periods. The ratio showed significant volatility, with a peak in December 2022 at 1.00 and some fluctuations afterward. The variability in the total asset turnover ratio may suggest changes in the company's asset utilization efficiency or revenue generation capabilities.
Overall, both the fixed asset turnover and total asset turnover ratios for CNH Industrial N.V. demonstrate fluctuations over the analyzed periods, indicating varying levels of efficiency in asset utilization and revenue generation. It is essential for stakeholders to monitor these ratios continuously to assess the company's operational performance and resource allocation strategies.