Carlisle Companies Incorporated (CSL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 8.16 | 6.92 | 7.18 | 8.91 | 6.10 |
| Receivables turnover | 7.45 | 6.57 | 5.91 | 6.48 | 5.73 |
| Payables turnover | 12.03 | 13.10 | 10.05 | 13.55 | 9.51 |
| Working capital turnover | 2.06 | 4.67 | 4.90 | 2.54 | 5.26 |
The activity ratios of Carlisle Companies Inc. provide insights into the efficiency of the company's management of its resources and operations.
1. Inventory Turnover:
- The inventory turnover ratio for Carlisle has shown a fluctuating trend over the past five years, ranging from 5.78 to 8.16.
- A higher inventory turnover ratio indicates that the company is selling its inventory more efficiently. However, the fluctuation suggests variability in the management of inventory levels.
2. Receivables Turnover:
- The receivables turnover ratio for Carlisle has also exhibited variation, with values ranging from 5.91 to 7.95.
- A higher receivables turnover ratio signifies that the company is collecting its receivables at a faster rate. The fluctuations in this ratio may indicate changes in the credit policies or payment terms.
3. Payables Turnover:
- The payables turnover ratio has been relatively stable, fluctuating between 8.08 and 12.03 over the five-year period.
- A higher payables turnover ratio suggests that the company is paying its suppliers more quickly. Consistent performance in this ratio could indicate steady relationships with suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio for Carlisle has shown significant variability, with values ranging from 2.06 to 5.65.
- This ratio reflects how effectively the company is utilizing its working capital to generate sales. The fluctuations may signify changes in the efficiency of working capital management strategies.
In interpreting these activity ratios, it is important to consider industry benchmarks and trends over time to assess the effectiveness of Carlisle's operational performance and efficiency in managing its assets and liabilities.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 44.71 | 52.76 | 50.83 | 40.96 | 59.87 |
| Days of sales outstanding (DSO) | days | 48.96 | 55.53 | 61.81 | 56.33 | 63.73 |
| Number of days of payables | days | 30.35 | 27.86 | 36.32 | 26.93 | 38.38 |
Activity ratios provide insight into how efficiently a company is managing its working capital and assets. Let's analyze the activity ratios of Carlisle Companies Inc. over the past five years.
1. Days of Inventory on Hand (DOH):
- The trend for DOH shows a fluctuating pattern over the years, ranging from 44.71 days in 2023 to 63.18 days in 2021.
- A lower DOH indicates that the company is selling inventory quickly, while a higher DOH suggests that inventory turnover is slower.
- In 2023, the company improved its inventory management significantly compared to the previous years, which may signify better demand forecasting or production efficiencies.
2. Days of Sales Outstanding (DSO):
- The DSO for Carlisle Companies Inc. has varied over the years, with the lowest being 45.91 days in 2022 and the highest at 61.81 days in 2021.
- A lower DSO indicates the company is collecting receivables faster, while a higher DSO suggests inefficiencies in collecting payments from customers.
- The company saw a decrease in DSO in 2022, indicating better credit management or improved collection processes.
3. Number of Days of Payables:
- Over the five-year period, the number of days of payables has shown stability, with minor fluctuations between 30.35 days in 2023 and 45.15 days in 2021.
- A lower number of days of payables may suggest that the company is paying its suppliers quickly, while a higher number indicates it is taking longer to settle its payables.
- The company seems to maintain a relatively consistent payment period to suppliers, possibly balancing cash flow considerations and supplier relationships.
Overall, analyzing these activity ratios provides valuable insights into how Carlisle Companies Inc. manages its inventory, receivables, and payables. The fluctuations in these ratios over the years indicate changes in the company's operational efficiency and working capital management practices.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 7.00 | 9.05 | 6.33 | 5.91 | 5.72 |
| Total asset turnover | 0.69 | 0.75 | 0.66 | 0.68 | 0.82 |
The fixed asset turnover ratio for Carlisle Companies Inc. has shown a decreasing trend over the past five years, decreasing from 8.01 in 2022 to 7.00 in 2023. This indicates that the company generated $7.00 in sales for every dollar invested in fixed assets in 2023, compared to $8.01 in 2022.
On the other hand, the total asset turnover ratio has also been fluctuating but generally declining over the same period. It decreased from 0.91 in 2022 to 0.69 in 2023. This suggests that the company generated $0.69 in sales for every dollar invested in total assets in 2023, compared to $0.91 in 2022.
Overall, the decreasing trend in both the fixed asset turnover and total asset turnover ratios may indicate inefficiencies in asset utilization by Carlisle Companies Inc. It may be beneficial for the company to reevaluate its asset management strategies to improve efficiency and maximize returns on its asset investments.