Curtiss-Wright Corporation (CW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.82 | 4.69 | 4.47 | 5.22 | 3.61 |
| Receivables turnover | 3.74 | 3.82 | 3.47 | 3.81 | 4.06 |
| Payables turnover | 10.55 | 9.81 | 8.10 | 10.15 | 7.70 |
| Working capital turnover | 4.14 | 3.07 | 4.69 | 4.30 | 4.88 |
Curtiss-Wright Corporation's inventory turnover has shown a fluctuating trend over the past five years, ranging from 3.61 to 5.22. This indicates that the company managed its inventory efficiently, with a higher turnover ratio in 2021 and 2022 compared to 2020 and 2023. However, there was a slight decrease in inventory turnover in 2024 compared to the previous year.
The receivables turnover ratio has also exhibited a somewhat unstable pattern, varying from 3.47 to 4.06. This suggests that the company collected its receivables at different rates over the years, with a dip in 2022 and a slight uptick in 2023.
On the other hand, the payables turnover ratio for Curtiss-Wright Corporation has been relatively consistent, with values ranging from 7.70 to 10.55. This indicates that the company effectively managed its payables and maintained stable relationships with its suppliers, with a gradual increase in payables turnover from 2020 to 2024.
The working capital turnover ratio fluctuated over the period, varying from 3.07 to 4.88. A higher turnover ratio indicates efficient utilization of working capital to generate revenue, although there was a significant drop in 2023 compared to 2022. Overall, Curtiss-Wright Corporation's working capital turnover performance has shown some volatility over the five-year period.
In summary, Curtiss-Wright Corporation has demonstrated a mixed performance in terms of activity ratios, with fluctuations in inventory turnover, receivables turnover, payables turnover, and working capital turnover. These ratios reflect the company's efficiency in managing its inventory, receivables, payables, and working capital over the years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 75.76 | 77.85 | 81.63 | 69.90 | 100.99 |
| Days of sales outstanding (DSO) | days | 97.65 | 95.62 | 105.18 | 95.85 | 89.86 |
| Number of days of payables | days | 34.59 | 37.22 | 45.04 | 35.94 | 47.38 |
Curtiss-Wright Corporation's activity ratios show how efficiently the company manages its inventory, collects receivables, and pays its suppliers.
1. Days of Inventory on Hand (DOH):
- The company held inventory for an average of 100.99 days in 2020, which decreased to 69.90 days in 2021. This suggests a more efficient management of inventory.
- In 2022, the DOH increased to 81.63 days, indicating a longer time to sell inventory. It further decreased to 77.85 days in 2023 and 75.76 days in 2024, showing an improvement in inventory turnover.
2. Days of Sales Outstanding (DSO):
- Receivables were collected in an average of 89.86 days in 2020, which increased to 95.85 days in 2021, indicating a longer time to collect payments.
- The DSO increased further to 105.18 days in 2022, signaling potential issues with collecting receivables efficiently. However, it decreased to 95.62 days in 2023 and 97.65 days in 2024, showing improvement in receivables management.
3. Number of Days of Payables:
- The company took an average of 47.38 days to pay its suppliers in 2020, which decreased to 35.94 days in 2021. This indicates a faster payment cycle.
- In 2022, the number of days of payables increased to 45.04 days but decreased to 37.22 days in 2023 and 34.59 days in 2024. This suggests that the company is efficiently managing its payables.
Overall, the trend in Curtiss-Wright Corporation's activity ratios shows improvements in inventory turnover, receivables management, and payables management over the years, indicating a better control over its working capital and operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 9.20 | 8.40 | 7.32 | 6.85 | 6.32 |
| Total asset turnover | 0.63 | 0.61 | 0.56 | 0.60 | 0.59 |
Curtiss-Wright Corporation's long-term activity ratios show a positive trend over the past five years.
1. Fixed Asset Turnover: The company's fixed asset turnover has steadily increased from 6.32 in 2020 to 9.20 in 2024. This indicates that Curtiss-Wright is generating more revenue per dollar invested in fixed assets, reflecting improved efficiency in utilizing its long-term assets for sales generation.
2. Total Asset Turnover: Despite a slight dip in 2022, the total asset turnover ratio has generally increased from 0.59 in 2020 to 0.63 in 2024. This suggests that the company is effectively utilizing its total assets to generate sales, which is a positive indication of operational efficiency and asset management.
Overall, both fixed asset turnover and total asset turnover ratios reflect Curtiss-Wright Corporation's ability to efficiently utilize its long-term assets to generate revenue and indicate effective management of assets to drive sales growth over the analyzed period.