Carlisle Companies Incorporated (CSL)

Short-term

Turnover ratios

The analysis of Carlisle Companies Incorporated's activity ratios reveals the following insights:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. Carlisle's inventory turnover has shown some fluctuation over the years, starting at 6.55 in 2020, dropping to 5.78 in 2021, increasing to 5.92 in 2022, peaking at 8.41 in 2023, and then decreasing to 6.59 in 2024. Generally, higher inventory turnover ratios indicate better efficiency in selling inventory.

2. Receivables Turnover: The receivables turnover ratio assesses how effectively a company collects payments from its customers. The data provided indicates that Carlisle did not have receivables turnover figures for the years 2020 to 2024. This lack of data makes it challenging to evaluate the company's performance in managing its accounts receivable.

3. Payables Turnover: Payables turnover measures how efficiently a company pays its suppliers. Similar to the receivables turnover, there is no data available for Carlisle's payables turnover for the years 2020 to 2024. Without this information, it is difficult to assess the company's payment practices and relationships with its suppliers.

4. Working Capital Turnover: The working capital turnover ratio evaluates how well a company utilizes its working capital to generate sales. Carlisle's working capital turnover has varied over the years, starting at 2.54 in 2020, significantly increasing to 4.90 in 2021, further rising to 5.65 in 2022, dropping to 2.06 in 2023, and then rebounding to 3.97 in 2024. Higher ratios suggest more efficient use of working capital in generating revenue.

In conclusion, while Carlisle Companies Incorporated has demonstrated fluctuations in its activity ratios, particularly in inventory turnover and working capital turnover, the absence of data for receivables and payables turnovers limits a comprehensive assessment of the company's overall efficiency in managing its working capital and relationships with customers and suppliers. Further data and analysis would be needed to gain deeper insights into the company's liquidity and operational effectiveness.

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Average number of days

Based on the provided data, we can evaluate Carlisle Companies Incorporated's activity ratios, focusing on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- The trend in DOH over the years indicates fluctuations in managing inventory levels efficiently.
- The DOH increased from 55.76 days in 2020 to 63.18 days in 2021, showing a potential extension in the time inventory is held.
- In 2022, the DOH declined slightly to 61.63 days before dropping significantly to 43.39 days in 2023, which may suggest improved inventory turnover.
- However, the DOH rose again to 55.37 days by the end of 2024, potentially indicating challenges in optimizing inventory levels.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO), which measures the average number of days a company takes to collect revenue after a sale.
- The absence of DSO data makes it challenging to assess Carlisle's efficiency in collecting receivables promptly.

3. Number of Days of Payables:
- Similarly, there is no data available for the Number of Days of Payables, which evaluates how long a company takes to pay its suppliers.
- Without this information, it is difficult to gauge Carlisle's payment practices and potential liquidity management strategies.

In conclusion, based on the provided data on Days of Inventory on Hand for Carlisle Companies Incorporated, the company has exhibited fluctuations in managing inventory levels, which may impact operational efficiency and working capital management. However, the absence of data on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive analysis of the company's overall activity ratios and working capital dynamics.

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Long-term

To analyze Carlisle Companies Incorporated's long-term activity ratios, we will focus on the fixed asset turnover and total asset turnover ratios from 2020 to 2024.

1. Fixed Asset Turnover Ratio:
- The fixed asset turnover ratio reflects how efficiently a company utilizes its fixed assets to generate sales. An increasing trend in this ratio indicates improved efficiency in asset utilization.
- Carlisle's fixed asset turnover has shown a positive trend over the years, increasing from 5.13 in 2020 to 8.01 in 2022.
- The significant jump in 2022 suggests that Carlisle has been able to generate more revenue per fixed asset invested, indicating efficient management of fixed assets.
- However, there is missing data for 2023 and 2024, which limits a complete trend analysis for those years.

2. Total Asset Turnover Ratio:
- The total asset turnover ratio measures a company's ability to generate sales from its total assets. A higher ratio implies better asset utilization and efficiency.
- Carlisle's total asset turnover fluctuated during the period under review, from 0.68 in 2020 to 0.91 in 2022, before dropping to 0.69 in 2023 and then rebounding to 0.86 in 2024.
- The substantial increase in 2022 indicates the company was able to generate more sales relative to its total assets, reflecting efficient utilization of assets that year.
- The drop in 2023 and subsequent recovery in 2024 may suggest fluctuations in sales or asset management practices during those years.

In summary, Carlisle Companies Incorporated demonstrated an overall improvement in asset turnover efficiency, particularly in fixed asset turnover up to 2022. However, fluctuations in total asset turnover indicate a mix of factors impacting sales generated from total assets. Further analysis and context regarding the missing data for 2023 and 2024 would provide a more comprehensive understanding of the company's long-term activity ratios.