CSW Industrials Inc (CSWI)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.37 | 3.97 | 3.69 | 3.61 | 5.57 |
| Receivables turnover | 5.58 | 6.17 | 5.10 | 4.34 | 5.16 |
| Payables turnover | 13.60 | 15.78 | 11.58 | 11.41 | 14.86 |
| Working capital turnover | 3.69 | 3.52 | 3.43 | 3.07 | 4.25 |
The activity ratios of CSW Industrials Inc reflect how efficiently the company manages its working capital components.
1. Inventory turnover: CSW Industrials Inc's inventory turnover has been relatively stable over the past five years, ranging from 3.61 to 5.57. This indicates that the company is able to turn over its inventory into sales a moderate number of times each year. The increase in 2020 followed by a decline in subsequent years could suggest potential changes in inventory management strategies.
2. Receivables turnover: The receivables turnover ratio shows the number of times receivables are collected during a period. CSW Industrials Inc's receivables turnover has fluctuated over the years, peaking in 2020 and then declining. The ratios indicate the company's ability to efficiently collect outstanding receivables, with a higher turnover generally being favorable.
3. Payables turnover: The payables turnover ratio measures how quickly a company pays its suppliers. CSW Industrials Inc's payables turnover has been relatively consistent, ranging from 11.41 to 15.78. A higher turnover ratio indicates that the company is paying its creditors more quickly, which could impact cash flow and supplier relationships.
4. Working capital turnover: The working capital turnover ratio assesses how effectively the company utilizes its working capital to generate sales. CSW Industrials Inc's working capital turnover has fluctuated over the years, with a peak in 2020 followed by a decline. A higher turnover ratio signifies efficient utilization of working capital to generate sales.
In summary, CSW Industrials Inc's activity ratios suggest that the company is efficiently managing its inventory, receivables, payables, and working capital to support its operations. However, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's performance in this aspect.
Average number of days
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 83.59 | 91.92 | 98.93 | 101.20 | 65.47 |
| Days of sales outstanding (DSO) | days | 65.46 | 59.12 | 71.54 | 84.19 | 70.68 |
| Number of days of payables | days | 26.83 | 23.13 | 31.52 | 31.99 | 24.57 |
To analyze the activity ratios of CSW Industrials Inc based on the provided data:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have shown a fluctuating trend over the past five years, ranging from 65.47 days in 2020 to 101.20 days in 2021. It indicates the number of days a company takes to sell its average inventory.
- A decreasing trend in DOH is generally positive as it signifies efficient inventory management and faster turnover of inventory, leading to lower holding costs and potentially higher liquidity.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have varied over the years, with the highest being 84.19 days in 2021 and the lowest at 59.12 days in 2023. DSO represents the average number of days it takes for a company to collect revenue after making a sale.
- A lower DSO indicates effective credit management and timely collection of accounts receivable, which can enhance cash flow and reduce the risk of bad debts.
3. Number of Days of Payables:
- The number of days of payables has also fluctuated, with a peak of 31.99 days in 2021 and a low of 23.13 days in 2023. This ratio represents the average number of days a company takes to pay its suppliers.
- A longer period of payables may indicate improved liquidity as the company can hold onto cash longer, but it could also suggest strained relationships with suppliers if stretched too far.
Overall, monitoring these activity ratios can provide insights into CSW Industrials Inc's operational efficiency, inventory management, cash flow dynamics, and relationships with customers and suppliers. Further analysis and comparison with industry benchmarks would help in evaluating the company's performance and identifying areas for improvement.
Long-term
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 8.57 | 8.59 | 7.20 | 5.08 | 6.76 |
| Total asset turnover | 0.76 | 0.73 | 0.63 | 0.48 | 1.03 |
CSW Industrials Inc's long-term activity ratios provide insight into the company's efficiency in utilizing its fixed assets and total assets to generate revenue over the past five years.
1. Fixed Asset Turnover:
The fixed asset turnover ratio measures how effectively a company generates sales revenue from its investments in fixed assets. CSW Industrials Inc's fixed asset turnover has generally been high over the past five years, ranging from 5.08 to 8.59 times. This indicates that the company has been efficiently utilizing its fixed assets to generate sales. The slight fluctuations in the ratio suggest consistent performance in this aspect, with the highest turnover seen in 2023 and 2022.
2. Total Asset Turnover:
The total asset turnover ratio reflects the company's ability to generate sales from all its assets. CSW Industrials Inc's total asset turnover has shown a fluctuating trend over the period, with values ranging from 0.48 to 1.03. The lower turnover ratios in 2021 and 2020 indicate that the company was less efficient in generating sales from its total assets during those years. However, the ratio improved significantly in 2023 and 2022, suggesting better asset utilization during those periods.
Overall, CSW Industrials Inc's long-term activity ratios indicate that the company has been effectively utilizing its fixed assets to generate revenue, while the total asset turnover has shown some volatility. Further analysis and comparison with industry benchmarks may provide additional insights into the company's efficiency in asset utilization.