Carpenter Technology Corporation (CRS)

Activity ratios

Short-term

Turnover ratios

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 Sep 30, 2019
Inventory turnover 5.38 4.96 5.02 5.68 6.18 4.76 3.90 3.82 3.88 1.27 1.30 2.23 3.41 2.88 3.56 3.30 3.07 2.48 2.41 2.56
Receivables turnover 4.90 7.29 7.48 7.36 6.83 4.53 4.81 4.94 4.67 4.92 4.95 4.73 4.61 5.19 7.32 7.64 7.41 6.33 6.32 6.19
Payables turnover 14.98 14.34 12.78 12.72 14.22 11.75 9.26 8.17 7.95 3.14 4.09 5.17 10.18 11.42 18.55 18.31 17.90 10.27 9.25 8.25
Working capital turnover 2.45 3.80 4.11 4.30 4.41 2.96 2.75 2.61 2.40 2.16 2.02 1.85 1.75 1.64 1.90 2.07 2.66 2.75 2.79 2.82

Carpenter Technology Corporation's inventory turnover ratio has shown fluctuations over the period under review, ranging from a low of 1.27 to a high of 6.18. The trend indicates some inconsistency in managing inventory levels efficiently.

On the other hand, the receivables turnover ratio has been relatively stable, with values ranging from 4.53 to 7.64. This suggests that the company has been effective in collecting receivables from customers in a timely manner.

The payables turnover ratio has also varied significantly, with values between 3.14 and 18.55. This indicates changes in the company's relationship with suppliers and its ability to manage payables effectively.

The working capital turnover ratio has shown a similar fluctuating pattern, with values ranging from 1.64 to 4.41. This ratio reflects how well the company is utilizing its working capital to generate sales revenue, with higher values indicating greater efficiency.

Overall, Carpenter Technology Corporation's activity ratios suggest that there have been inconsistencies in managing inventory but relatively stable performance in collecting receivables. The company's ability to manage payables and utilize working capital effectively has shown fluctuations over the period.

Average number of days

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 Sep 30, 2019
Days of inventory on hand (DOH) days 67.90 73.62 72.69 64.27 59.06 76.61 93.48 95.57 94.09 286.31 280.09 163.73 107.15 126.65 102.56 110.65 118.92 147.30 151.33 142.53
Days of sales outstanding (DSO) days 74.51 50.10 48.80 49.62 53.45 80.56 75.93 73.82 78.23 74.24 73.79 77.21 79.17 70.38 49.85 47.78 49.25 57.65 57.73 58.96
Number of days of payables days 24.37 25.45 28.56 28.69 25.67 31.06 39.41 44.68 45.91 116.37 89.21 70.63 35.84 31.95 19.67 19.93 20.39 35.53 39.48 44.23

The activity ratios for Carpenter Technology Corporation provide insights into the efficiency of the company's operations related to inventory management, accounts receivable collection, and accounts payable payment. Here is a detailed analysis based on the data provided:

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows fluctuations over the periods analyzed, with a recent decrease in days of inventory on hand. This may indicate an improvement in inventory management efficiency.
- In general, the company has been able to reduce the days of inventory on hand compared to previous periods, which is a positive sign as it suggests faster inventory turnover.

2. Days of Sales Outstanding (DSO):
- The DSO metric has shown variability over time, with some periods experiencing lower DSO indicating quicker collection of accounts receivable.
- Overall, there has been a recent improvement in DSO, indicating that the company has been able to collect receivables more efficiently in the latest period.

3. Number of Days of Payables:
- The trend in the number of days of payables reflects fluctuations, but there is a general decrease in the days of payables in recent periods.
- A decrease in the number of days of payables may suggest that the company is paying its suppliers more quickly, which can impact cash flow management.

Overall, Carpenter Technology Corporation's activity ratios indicate improvements in inventory management efficiency, accounts receivable collection, and accounts payable payment over the recent periods. These trends suggest that the company is working towards optimizing its operational processes and enhancing its overall financial performance.

Long-term

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 Sep 30, 2019
Fixed asset turnover 2.06 2.81 2.79 2.74 2.62 1.69 1.53 1.38 1.26 1.16 1.06 1.02 0.98 1.11 1.27 1.43 1.45 1.70 1.73 1.72
Total asset turnover 0.84 1.20 1.20 1.22 1.19 0.75 0.69 0.66 0.61 0.51 0.53 0.50 0.48 0.48 0.55 0.61 0.67 0.69 0.70 0.71

Carpenter Technology Corporation's long-term activity ratios exhibit fluctuations over the periods analyzed. The fixed asset turnover ratio, which measures the efficiency of utilizing fixed assets to generate sales, ranged from 0.98 to 2.81. The company showed varying levels of efficiency in generating sales from its fixed assets during this period.

In contrast, the total asset turnover ratio, which indicates the company's ability to generate sales from all assets, fluctuated between 0.48 and 1.20. This suggests that Carpenter Technology Corporation's overall efficiency in utilizing its total assets to generate sales varied significantly throughout the periods examined.

Overall, the company's performance in terms of asset turnover ratios indicates fluctuations in operational efficiency and effectiveness in utilizing both fixed and total assets to generate sales over the analyzed periods. Further analysis of the factors influencing these fluctuations would provide additional insights into Carpenter Technology Corporation's long-term activity performance.