Corteva Inc (CTVA)

Short-term

Turnover ratios

The activity ratios for Corteva Inc provide insights into the efficiency of the company's operations in managing its inventory and working capital over the years.

1. Inventory Turnover: Corteva's inventory turnover has remained relatively stable over the past five years, ranging between 1.46 to 1.78 times. This indicates that, on average, the company is able to sell and replace its inventory approximately 1.5 to 1.8 times a year. A higher inventory turnover ratio generally implies better efficiency in managing inventory levels.

2. Receivables Turnover: The data shows that receivables turnover information is not available for any of the years provided. This could suggest that Corteva Inc may not have significant accounts receivable turnover or the data might not be disclosed.

3. Payables Turnover: Similar to receivables turnover, payables turnover information is not provided for any of the years. Lack of payables turnover data may indicate that the company's payables management strategy is not disclosed or less significant.

4. Working Capital Turnover: The working capital turnover ratio has shown a consistent increasing trend from 2.29 in 2020 to 3.59 in 2024. This indicates that Corteva has been more effective in utilizing its working capital to generate revenue over the years. A higher working capital turnover ratio suggests that the company is efficiently using its working capital to support its operations and sales.

In conclusion, while Corteva Inc has shown stability in its inventory turnover ratios and improving efficiency in utilizing its working capital, the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall activity efficiency.

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Average number of days

Corteva Inc's days of inventory on hand (DOH) decreased from 209.47 days in 2020 to 205.07 days in 2021 and then increased to 238.22 days in 2022, with a further increase to 250.21 days in 2023, before declining to 208.07 days in 2024. This indicates that the company took longer to sell its inventory in 2022 and 2023, but effectively managed its inventory in 2021 and 2024.

The days of sales outstanding (DSO) and number of days of payables data were not provided, suggesting that the company's accounts receivable and accounts payable turnover ratios could not be calculated for the specified years.

In conclusion, the trend in Corteva Inc's days of inventory on hand suggests fluctuations in the efficiency of managing and selling inventory over the years reviewed. Tracking DSO and days of payables in the future would provide a more comprehensive insight into the company's overall liquidity and working capital management.

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Long-term

Corteva Inc's long-term activity ratios show a positive trend over the years, indicating improvements in asset utilization efficiency.

1. Fixed Asset Turnover:
- The company's Fixed Asset Turnover ratio has increased from 3.23 in 2020 to 4.10 in 2022, showcasing an efficient use of fixed assets to generate sales.
- The sharp rise in this ratio suggests that Corteva has been able to generate more revenue from its fixed assets in recent years, reflecting improved operational efficiency and potentially better production or utilization of assets.

2. Total Asset Turnover:
- Corteva's Total Asset Turnover ratio has also shown an increasing trend, from 0.33 in 2020 to 0.41 in 2024.
- This indicates that the company is generating more revenue for each dollar invested in total assets, implying effective management of all its assets, both fixed and current.

Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios for Corteva Inc suggests an improvement in the company's ability to generate sales from its assets over the past few years.