CSW Industrials Inc (CSWI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.34 | 2.51 | 2.87 | 2.93 | 2.87 | 2.91 | 2.79 | 2.72 | 2.42 | 2.39 | 2.44 | 2.48 | 2.75 | 2.85 | 2.66 | 2.39 | 2.06 | 3.92 | 3.40 | 3.88 |
| Receivables turnover | 7.48 | 6.21 | 5.70 | 5.48 | 7.44 | 6.13 | 5.99 | 6.17 | 7.13 | 5.57 | 4.62 | 5.10 | 6.46 | 5.02 | 4.37 | 4.34 | 5.12 | 5.39 | 5.24 | 5.15 |
| Payables turnover | 8.96 | 7.30 | 8.17 | 9.14 | 10.02 | 9.33 | 9.46 | 10.82 | 10.24 | 8.18 | 7.59 | 7.78 | 8.88 | 8.34 | 6.45 | 7.22 | 8.13 | 9.85 | 8.67 | 9.50 |
| Working capital turnover | 2.00 | 1.87 | 3.89 | 3.68 | 3.96 | 3.76 | 3.59 | 3.52 | 3.45 | 3.27 | 3.18 | 3.43 | 3.85 | 3.39 | 3.24 | 3.18 | 2.76 | 3.22 | 3.76 | 4.25 |
CSW Industrials Inc's inventory turnover has been gradually decreasing over the analyzed period, starting at 3.88 in March 2020 and reaching 2.34 in December 2024. This may indicate that the company is holding onto inventory for a longer period, which could tie up capital and potentially impact profitability.
In contrast, the receivables turnover ratio has fluctuated but generally improved over the same period, from 5.15 in March 2020 to 7.48 in December 2024. This suggests that the company is collecting receivables more efficiently, potentially improving cash flow and reducing the risk of bad debts.
CSW Industrials Inc's payables turnover ratio has shown some volatility but has been relatively stable, ranging from 6.45 in June 2021 to 10.24 in December 2022. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can be beneficial for cash flow management but may strain supplier relationships.
The working capital turnover ratio has been relatively stable, hovering around 3.5 for most of the period but dropping to 1.87 in September 2024. This decline could indicate a potential issue with the company's working capital management or a decrease in sales relative to the working capital employed.
Overall, the analysis of CSW Industrials Inc's activity ratios reveals mixed trends in inventory, receivables, payables management, and working capital turnover, which may warrant further investigation into the company's operational efficiency and financial health.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 156.29 | 145.47 | 127.27 | 124.46 | 126.96 | 125.57 | 131.06 | 134.12 | 150.91 | 152.55 | 149.87 | 147.13 | 132.58 | 128.26 | 137.44 | 152.73 | 177.55 | 93.10 | 107.44 | 93.96 |
| Days of sales outstanding (DSO) | days | 48.81 | 58.78 | 64.08 | 66.58 | 49.06 | 59.59 | 60.92 | 59.12 | 51.22 | 65.58 | 78.96 | 71.55 | 56.47 | 72.75 | 83.47 | 84.19 | 71.23 | 67.66 | 69.68 | 70.83 |
| Number of days of payables | days | 40.73 | 50.03 | 44.67 | 39.95 | 36.42 | 39.13 | 38.60 | 33.75 | 35.65 | 44.61 | 48.10 | 46.89 | 41.13 | 43.76 | 56.58 | 50.52 | 44.87 | 37.06 | 42.09 | 38.42 |
CSW Industrials Inc's activity ratios provide insights into the efficiency of its operations.
1. Days of Inventory on Hand (DOH):
- CSW Industrials Inc's DOH has shown fluctuations over the years. It increased significantly from December 2020 to March 2021 but gradually decreased thereafter. This suggests that the company managed its inventory more effectively in recent periods, leading to shorter DOH.
2. Days of Sales Outstanding (DSO):
- The DSO for CSW Industrials Inc also varied notably. There was a spike in DSO from March 2021 to June 2022, indicating that the company took longer to collect its receivables during that period. However, there was a significant improvement in DSO from September 2022 to December 2024, reflecting better receivables management.
3. Number of Days of Payables:
- CSW Industrials Inc's days of payables remained relatively stable with some fluctuations. The company seemed to have optimized its payment terms by reducing the number of days of payables in recent periods. This might indicate effective management of vendor payments.
Overall, the trends in activity ratios suggest that CSW Industrials Inc made efforts to streamline its inventory management, improve collection of receivables, and optimize payment terms to enhance operational efficiency over the analyzed periods.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 8.52 | 8.59 | 8.57 | 8.20 | 7.77 | 7.20 | 7.10 | 6.67 | 3.49 | 5.08 | 4.46 | 6.55 | 5.14 | 5.25 |
| Total asset turnover | 0.64 | 0.62 | 0.78 | 0.76 | 0.78 | 0.77 | 0.74 | 0.73 | 0.70 | 0.69 | 0.65 | 0.63 | 0.62 | 0.60 | 0.54 | 0.48 | 0.44 | 0.97 | 1.01 | 1.05 |
The long-term activity ratios of CSW Industrials Inc reveal important insights into the company's utilization of its assets.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company generates sales revenue from its fixed assets.
- The trend for CSW Industrials Inc's fixed asset turnover shows a general increase over the years, indicating improved efficiency in utilizing its fixed assets.
- The ratio has been steadily increasing, reaching a peak of 8.57 as of December 31, 2022. This suggests that the company has been able to generate more sales relative to its investment in fixed assets.
- The latest available data as of June 30, 2023, indicates a slightly lower but still strong fixed asset turnover of 8.52, continuing the positive trend.
2. Total Asset Turnover:
- The total asset turnover ratio reflects how efficiently the company generates sales relative to its total assets.
- CSW Industrials Inc's total asset turnover has shown a mixed trend over the years, with fluctuations but a general increasing pattern.
- The ratio has gradually increased from 1.05 on March 31, 2020, to 0.78 on June 30, 2024, with some fluctuations in between.
- The latest data available as of June 30, 2024, shows a total asset turnover of 0.78, indicating that the company is generating sales revenue more efficiently compared to the beginning of the period.
Overall, the analysis of CSW Industrials Inc's long-term activity ratios suggests a positive trend in asset utilization and efficiency, with improvements in both fixed asset turnover and total asset turnover over the years.