Crane NXT Co (CXT)

Short-term

Turnover ratios

Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times a company sells and replaces its inventory during a specific period. Crane NXT Co's inventory turnover has been generally increasing over the years, indicating that the company is selling its inventory more frequently. This can be seen as a positive trend as higher inventory turnover may suggest better inventory management and a more efficient use of resources.

Receivables Turnover: The receivables turnover ratio reflects how efficiently a company manages its credit sales and collection of accounts receivable. In this case, the data shows that Crane NXT Co did not report any receivables turnover figures for the years provided. This lack of data might suggest that the company's credit sales and accounts receivable collection practices are not being closely monitored or reported, which could be a cause for concern.

Payables Turnover: The payables turnover ratio measures how well a company manages its accounts payable by showing how many times a company pays off its suppliers during a specific period. Similar to receivables turnover, the data indicates that Crane NXT Co did not disclose any payables turnover figures for the years in question. This lack of data may indicate insufficient reporting on the company's payment practices to suppliers, potentially causing uncertainty about its financial management in this area.

Working Capital Turnover: The working capital turnover ratio demonstrates how efficiently a company utilizes its working capital to generate sales revenue. Crane NXT Co's working capital turnover has shown fluctuating trends over the years, with a significant increase in 2022 followed by a further increase in 2024. A higher working capital turnover ratio indicates that the company is generating more revenue per unit of working capital, which can generally be interpreted as a positive sign of operational efficiency and financial health.

In summary, while Crane NXT Co appears to be managing its inventory efficiently and generating revenues effectively in relation to its working capital, the lack of reported data on receivables and payables turnover ratios raises concerns about the company's management of accounts receivable and payable, which are crucial components of working capital and overall financial health.

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Average number of days

Crane NXT Co's activity ratios reflect its efficiency in managing inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH):
- The company's inventory turnover has improved from 82.84 days in 2020 to 64.32 days in 2024, indicating that it is selling its inventory more quickly.
- A lower DOH is generally favorable as it suggests that Crane NXT Co is efficiently managing its inventory levels and turning over its goods rapidly.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for any of the years, suggesting that information regarding the time it takes for the company to collect its accounts receivable is not provided.
- Without DSO figures, it is challenging to assess the efficiency of Crane NXT Co in collecting payments from customers.

3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not provided for any of the years, making it difficult to evaluate the company's payment practices to its suppliers.
- Monitoring payables turnover is crucial as it can indicate how effectively Crane NXT Co manages its cash flow and relationships with vendors.

In conclusion, while Crane NXT Co's improved inventory turnover is a positive sign, the absence of data on DSO and payables days makes it challenging to provide a comprehensive analysis of the company's overall efficiency in managing activity ratios.

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Long-term

Based on the data provided, we can analyze the long-term activity ratios for Crane NXT Co using the fixed asset turnover and total asset turnover ratios.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how efficiently the company utilizes its fixed assets to generate sales.
- In December 2020, the fixed asset turnover ratio was 4.34, which means that for every dollar invested in fixed assets, the company generated $4.34 in sales.
- There was a notable improvement in efficiency by December 2023, as the ratio increased to 11.42, indicating the company significantly enhanced its utilization of fixed assets to generate sales.
- However, the data for December 2024 is missing, preventing a complete trend analysis for fixed asset turnover.

2. Total Asset Turnover:
- The total asset turnover ratio measures how effectively the company uses its total assets to generate revenue.
- In December 2020, the total asset turnover ratio was 0.64, suggesting that for every dollar of assets owned, the company generated $0.64 in revenue.
- There was a steady improvement in asset utilization efficiency through December 2022, where the ratio increased to 0.77.
- The ratio declined slightly in December 2023 and 2024 to 0.65 and 0.62, respectively, indicating a potential decrease in the company's ability to generate revenue from its total assets over those years.

Overall, the trends observed in the fixed asset turnover ratio show an improvement in the company's efficiency in utilizing its fixed assets to generate sales, while the total asset turnover ratio indicates fluctuations in how effectively the company uses its total assets to generate revenue. The missing data for December 2024 limits a thorough analysis of Crane NXT Co's long-term activity ratios.