CNH Industrial N.V. (CNH)
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 | 2.79 | 2.48 | 2.63 | 2.65 | 3.03 | 2.64 | 2.65 | 2.83 | 3.45 | 3.51 | 3.32 | 3.23 | 2.38 | 0.85 | 1.10 | 1.40 | 1.85 | 3.09 | 2.99 | 2.86 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 1.15 | 0.76 | 0.90 | 0.83 | 1.38 | 0.92 | 0.94 | 0.99 | 1.65 | 1.19 | 1.18 | 1.15 | 1.71 | 1.46 | 1.52 | 1.67 | 1.67 | 1.80 | 1.77 | 2.29 |
The inventory turnover ratio for CNH Industrial N.V. has fluctuated over the years, ranging from a low of 0.85 in September 2021 to a high of 3.51 in September 2022. During this period, the company's ability to turn over its inventory improved, indicating that it was able to sell its inventory more efficiently.
On the other hand, the receivables turnover and payables turnover ratios are not provided in the data, which limits our ability to assess the efficiency of the company in collecting receivables and managing payables.
The working capital turnover ratio for CNH Industrial N.V. declined from 2.29 in March 2020 to 0.76 in September 2024. This indicates a decrease in the company's ability to generate revenue relative to its working capital. A lower working capital turnover ratio may suggest inefficiencies in the utilization of working capital to generate sales.
Overall, while the inventory turnover ratio showed some improvement, the trend in working capital turnover raises some concerns about the company's operational efficiency and effectiveness in generating revenue. Additional information on receivables and payables turnover would provide a more comprehensive analysis of CNH Industrial N.V.'s activity ratios.
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 | 130.76 | 147.24 | 138.86 | 137.64 | 120.44 | 138.36 | 137.53 | 129.15 | 105.82 | 104.01 | 109.83 | 112.85 | 153.41 | 430.99 | 331.10 | 260.66 | 197.10 | 118.31 | 121.88 | 127.53 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for CNH Industrial N.V., we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- CNH Industrial's DOH has displayed fluctuations over the periods analyzed, ranging from a low of 104.01 days to a high of 430.99 days.
- A high DOH indicates that the company is taking longer to sell its inventory, which may suggest issues related to excess inventory levels or challenges in managing inventory efficiently.
- The trend shows some volatility, and the company should aim to optimize its inventory management to prevent excessive tying up of capital in inventory.
2. Days of Sales Outstanding (DSO):
- The data provided does not contain information on DSO, which measures how long it takes for a company to collect its accounts receivable.
- Without DSO data, it is not possible to assess the efficiency of CNH Industrial in collecting payments from customers.
3. Number of Days of Payables:
- Similar to DSO, the data does not provide information on the number of days of payables, which measures how long a company takes to pay its suppliers.
- Without this data, it is challenging to evaluate CNH Industrial's payment practices and its relationship with suppliers.
In conclusion, while the Days of Inventory on Hand ratio gives some insight into CNH Industrial's inventory management efficiency, the absence of DSO and payables data limits a comprehensive assessment of the company's overall working capital performance. Monitoring these activity ratios over time can help identify trends and areas for improvement in CNH Industrial's operations.
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | 4.97 | 5.23 | 5.43 | 5.32 | 5.56 | 5.64 | 5.54 |
| Total asset turnover | 0.46 | 0.49 | 0.53 | 0.53 | 0.53 | 0.58 | 0.58 | 0.60 | 0.60 | 0.72 | 0.69 | 0.65 | 0.47 | 0.48 | 0.50 | 0.53 | 0.54 | 0.56 | 0.56 | 0.62 |
The Fixed Asset Turnover ratio for CNH Industrial N.V. indicates how efficiently the company generates sales from its fixed assets. The ratio has generally been stable, hovering around the range of 5.3 to 5.6 from March 31, 2020, to June 30, 2021. However, there has been a slight decline in the most recent periods to 4.97 on September 30, 2021. Subsequently, the ratio remains unspecified from December 31, 2021, onwards. This could suggest a potential decrease in the efficiency of utilizing fixed assets to generate revenue.
On the other hand, the Total Asset Turnover ratio measures how effectively the company generates sales from all its assets. Initially starting at 0.62 on March 31, 2020, the ratio has experienced a decline over time, reaching 0.47 by December 31, 2021. However, there is a notable improvement in performance from March 31, 2022, to June 30, 2024, with the ratio fluctuating between 0.53 and 0.69. The decrease to 0.46 on December 31, 2024, might indicate a lower level of asset utilization efficiency at the end of the period.
In general, a higher Fixed Asset Turnover ratio signifies better efficiency in utilizing fixed assets, while a higher Total Asset Turnover ratio indicates improved effectiveness in generating sales from all assets. The fluctuation in these ratios may reflect changes in the company's operational efficiency and asset management strategies over the years.