Corteva Inc (CTVA)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.01 | 2.20 | 2.52 | 2.18 | 2.10 | 2.60 | 3.29 | 2.70 | 2.54 | 2.73 | 3.30 | 2.70 | 2.37 | 2.63 | 3.22 | 2.63 | 2.76 |
| Receivables turnover | 3.14 | 2.64 | 2.20 | 2.04 | 3.06 | 2.73 | 2.40 | 2.21 | 3.25 | 2.64 | 2.19 | 2.13 | 2.89 | 2.49 | 2.07 | 2.13 | 2.50 |
| Payables turnover | 3.23 | 3.78 | 4.19 | 3.62 | 2.92 | 3.40 | 3.86 | 3.65 | 3.19 | 3.43 | 3.81 | 3.76 | 3.20 | 3.84 | 4.00 | 3.83 | 3.75 |
| Working capital turnover | 2.94 | 2.90 | 2.56 | 3.48 | 2.88 | 2.79 | 2.42 | 2.58 | 2.61 | 2.43 | 2.12 | 2.39 | 2.29 | 2.20 | 2.04 | 2.63 | 2.62 |
Corteva Inc's activity ratios provide insights into the efficiency of the company in managing its assets and liabilities.
1. Inventory turnover: The trend in inventory turnover indicates that Corteva's ability to sell through its inventory varied over the quarters. While there was a dip in Q4 2023 compared to the previous quarters, the ratio has generally been stable, suggesting effective management of inventory levels.
2. Receivables turnover: Corteva's ability to collect receivables improved in Q4 2023 compared to Q3, indicating efficient collection efforts. The company's receivables turnover has been fluctuating but generally shows a positive trend in converting credit sales to cash.
3. Payables turnover: The payables turnover ratio reflects how quickly Corteva pays its suppliers. The increase in Q4 2023 compared to previous quarters suggests the company is taking longer to pay its bills, which could be favorable for cash flow management.
4. Working capital turnover: The working capital turnover ratio measures how effectively Corteva utilizes its working capital to generate revenue. The fluctuations in the ratio over the quarters indicate varying efficiency levels in utilizing working capital, with Q1 2023 showing the highest turnover.
Overall, Corteva's activity ratios demonstrate fluctuations in efficiency levels in managing inventory, receivables, payables, and working capital. Further analysis of these ratios in conjunction with other financial metrics would provide a more comprehensive assessment of the company's operational efficiency.
Average number of days
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 181.93 | 165.79 | 144.99 | 167.72 | 173.70 | 140.28 | 110.78 | 135.27 | 143.76 | 133.84 | 110.54 | 135.34 | 153.93 | 138.98 | 113.20 | 138.72 | 132.13 |
| Days of sales outstanding (DSO) | days | 116.28 | 138.50 | 165.63 | 178.57 | 119.21 | 133.83 | 151.81 | 165.16 | 112.17 | 138.05 | 166.66 | 171.69 | 126.47 | 146.78 | 176.04 | 171.66 | 145.73 |
| Number of days of payables | days | 112.87 | 96.48 | 87.05 | 100.78 | 124.84 | 107.25 | 94.45 | 99.97 | 114.51 | 106.42 | 95.84 | 97.04 | 113.98 | 95.13 | 91.19 | 95.22 | 97.20 |
The activity ratios for Corteva Inc provide insights into the efficiency of the company's operations in managing inventory, collecting receivables, and paying off its payables.
1. Days of inventory on hand (DOH) measures how long it takes for the company to sell its inventory. An increasing trend in DOH indicates that Corteva is holding onto its inventory for a longer period, which may suggest potential issues with sales and demand. Over the past eight quarters, there has been significant variability in DOH, with fluctuations ranging from 155.25 days to 253.84 days. Corteva experienced the highest DOH in Q4 2023 and the lowest in Q2 2022.
2. Days of sales outstanding (DSO) indicates the average number of days it takes for the company to collect payment after making a sale. A higher DSO value may signify difficulties in collecting receivables promptly. Corteva's DSO has fluctuated over the quarters, ranging from 119.21 days to 178.57 days. The highest DSO was recorded in Q4 2022, while the lowest was in Q4 2023, suggesting improvements in receivables collection efficiency.
3. Number of days of payables reflects how long it takes the company to pay its suppliers. A longer number of days of payables may indicate favorable payment terms negotiated with suppliers. Corteva's days of payables have varied over the quarters, with values ranging from 119.78 days to 171.20 days. The lowest days of payables were observed in Q2 2023, while the highest was in Q4 2022, indicating fluctuations in the company's payables management.
Overall, the analysis of Corteva Inc's activity ratios suggests that the company has experienced fluctuations in its efficiency in managing inventory, collecting receivables, and paying payables over the past eight quarters. Monitoring these ratios and identifying trends can help in assessing the company's operational performance and identifying areas for improvement.
Long-term
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.02 | 4.01 | 4.07 | 4.15 | 4.10 | 4.09 | 3.88 | 3.71 | 3.62 | 3.57 | 3.43 | 3.36 | 3.23 | 3.27 | 3.27 | 3.31 | 3.05 |
| Total asset turnover | 0.40 | 0.40 | 0.40 | 0.39 | 0.41 | 0.42 | 0.41 | 0.38 | 0.37 | 0.37 | 0.36 | 0.34 | 0.33 | 0.34 | 0.33 | 0.34 | 0.33 |
Long-term activity ratios provide insights into how effectively a company utilizes its assets to generate revenue. In the case of Corteva Inc, we can see that the fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 3.71 to 4.15. This indicates that Corteva is efficient in generating revenue from its fixed assets such as property, plant, and equipment.
Furthermore, the total asset turnover ratio has also remained quite consistent, fluctuating between 0.38 and 0.42. This ratio reflects how well Corteva generates sales from all its assets, including fixed and current assets. The stability of this ratio suggests that Corteva is effectively leveraging its total assets to drive revenue.
Overall, the long-term activity ratios of Corteva Inc indicate a consistent and efficient utilization of assets to generate revenue over the analyzed quarters. This stability in asset turnover ratios signifies a level of operational efficiency in the company's long-term asset management.