CSW Industrials Inc (CSWI)

Short-term

Turnover ratios

CSW Industrials Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. CSW Industrials Inc's inventory turnover has shown a slight increase from 2.39 in 2021 to 2.49 in 2025, indicating that the company is managing its inventory more efficiently.

2. Receivables Turnover: This ratio reflects how well a company is collecting its outstanding receivables. CSW Industrials Inc's receivables turnover has generally improved from 4.34 in 2021 to 5.79 in 2025, suggesting better management of receivables and faster collection of payments from customers.

3. Payables Turnover: The payables turnover ratio measures how efficiently a company pays its suppliers. CSW Industrials Inc's payables turnover has fluctuated over the years but remained relatively stable, indicating a consistent payment cycle to suppliers without any sudden changes.

4. Working Capital Turnover: This ratio examines how effectively the company utilizes its working capital to generate revenue. CSW Industrials Inc's working capital turnover has decreased from 3.18 in 2021 to 1.97 in 2025, implying that the company's ability to generate revenue from its working capital has declined over the years.

Overall, while CSW Industrials Inc has shown improvements in inventory and receivables turnover, there might be a need to revisit its working capital management to enhance overall efficiency in utilizing assets to drive sales.

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Average number of days

The activity ratios of CSW Industrials Inc reflect its efficiency in managing inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand decreased from 152.73 days in 2021 to 146.66 days in 2025. This indicates that the company has been able to reduce the average number of days it holds inventory before selling it, which may imply better inventory management and faster turnover.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding decreased from 84.19 days in 2021 to 63.02 days in 2025. This suggests that the company has been able to collect receivables more quickly over the years, resulting in a shorter time between making sales and receiving cash.

3. Number of Days of Payables:
- The number of days of payables decreased from 50.52 days in 2021 to 41.22 days in 2025. This indicates that the company has been able to manage its payables more efficiently, possibly extending payment terms with suppliers or negotiating better terms, which can improve cash flow and liquidity.

Overall, the decreasing trend in the activity ratios of CSW Industrials Inc suggests improvements in its operational efficiency and effectiveness in managing working capital components.

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Long-term

The fixed asset turnover ratio for CSW Industrials Inc has shown a strong increasing trend over the years, indicating that the company has been able to generate more sales relative to its investment in fixed assets. This suggests improved efficiency in utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown some fluctuations but has generally been increasing. This indicates that the company has been able to generate more sales revenue relative to its total assets, which is a positive sign of asset utilization efficiency.

Overall, the trend in both the fixed asset turnover and total asset turnover ratios suggests that CSW Industrials Inc has been effectively managing its assets to generate sales and improve efficiency over the years. However, it is essential to closely monitor these ratios to ensure continued operational effectiveness and profitability.