Curtiss-Wright Corporation (CW)

Short-term

Turnover ratios

Curtiss-Wright Corp.'s activity ratios provide insights into how efficiently the company is managing its assets and liabilities.

1. Inventory turnover: This ratio measures how many times a company's inventory is sold and replaced over a period. Curtiss-Wright Corp.'s inventory turnover has been relatively consistent, ranging between 3.13 to 3.49 times in the past eight quarters. A higher turnover indicates that the company is managing its inventory efficiently and avoiding excess stock holding.

2. Receivables turnover: The receivables turnover ratio indicates how many times a company collects its accounts receivable over a period. Curtiss-Wright Corp.'s receivables turnover has also been fairly stable, varying from 3.46 to 3.88 times in the last eight quarters. A higher turnover suggests that the company is effective in collecting payments from customers in a timely manner.

3. Payables turnover: This ratio reveals how many times a company pays its suppliers over a period. Curtiss-Wright Corp.'s payables turnover has fluctuated, ranging from 6.01 to 9.14 times in the past eight quarters. A higher turnover implies that the company is efficiently managing its accounts payable and possibly taking advantage of early payment discounts.

4. Working capital turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Curtiss-Wright Corp.'s working capital turnover has shown variability, with values ranging from 3.12 to 6.48 in the last eight quarters. A higher turnover signifies that the company is using its working capital efficiently to support its operations and generate revenue.

Overall, Curtiss-Wright Corp.'s activity ratios indicate a relatively stable performance in managing its resources and operations over the past two years, with some fluctuations in payables turnover and working capital turnover. Further analysis and comparison with industry benchmarks may provide a more comprehensive understanding of the company's operational efficiency.

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Average number of days

In analyzing the activity ratios of Curtiss-Wright Corp., we can see fluctuations in the efficiency of its operations over the past eight quarters.

1. Days of Inventory on Hand (DOH):
- The company's days of inventory on hand have varied over the quarters, ranging from 104.69 days to 119.07 days.
- A decreasing trend in DOH indicates that the company is managing its inventory more efficiently, whereas an increasing trend may suggest potential inventory management issues.
- The latest quarter's DOH of 104.69 days reflects that the company held inventory for approximately 104 days before it was sold, which is lower than the previous quarter.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have also shown fluctuations, with values ranging from 93.99 days to 105.62 days.
- A higher DSO indicates that the company is taking longer to collect its accounts receivable, potentially impacting cash flows.
- The latest quarter's DSO of 93.99 days indicates an improvement in collecting receivables compared to the previous quarter.

3. Number of Days of Payables:
- The number of days of payables has been inconsistent, ranging from 39.91 days to 60.71 days.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which may have implications on supplier relationships.
- The latest quarter's payables days of 50.05 days indicate that the company is taking approximately 50 days to pay its bills, which has increased compared to the previous quarter.

Overall, the company's activity ratios reveal mixed performance in managing inventory, collecting receivables, and paying suppliers efficiently. Management should continue to monitor these ratios to ensure effective working capital management and operational efficiency.

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Long-term

Curtiss-Wright Corp.'s long-term activity ratios provide insight into the efficiency and effectiveness of the company's utilization of its fixed assets and total assets to generate sales.

The fixed asset turnover ratio for Curtiss-Wright Corp. has shown a generally positive trend over the past eight quarters, increasing steadily from 6.95 in Q1 2022 to 8.55 in Q4 2023. This indicates that the company is generating more revenue for each dollar invested in fixed assets. A higher fixed asset turnover ratio is typically a positive sign of operational efficiency and effective asset management.

In contrast, the total asset turnover ratio for Curtiss-Wright Corp. has fluctuated over the same period, with a peak of 0.64 in Q3 2023 and a low of 0.56 in Q2 2022. This ratio measures the company's ability to generate sales from its total assets, including both fixed and current assets. Generally, a higher total asset turnover ratio is preferred as it suggests that the company is efficiently using its assets to generate sales.

Overall, while the company's fixed asset turnover ratio has shown consistent improvement, the total asset turnover ratio has been more variable. Curtiss-Wright Corp. may want to focus on optimizing the use of all its assets to improve overall efficiency and maximize sales generation.