Dana Inc (DAN)

Short-term

Turnover ratios

Dana Inc's inventory turnover ratio has shown a consistent trend over the years, with a slight decrease from 5.64 in 2020 to 5.18 in 2021 before increasing to 6.08 in 2024. This indicates that the company is efficiently managing its inventory levels and turning over its inventory multiple times during the year.

On the other hand, the receivables turnover ratio data is not available for any of the years, suggesting that information on how quickly the company collects its accounts receivable is lacking. This may warrant further investigation into the company's credit policies and collection practices.

Similarly, the payables turnover ratio information is also missing for all years, making it challenging to assess how quickly Dana Inc pays its suppliers and manages its payables.

In terms of the working capital turnover ratio, the data shows an increasing trend from 5.28 in 2020 to 7.03 in 2023, with no data available for 2024. This indicates that the company is generating more revenue relative to its working capital over the years, which is a positive sign of efficient capital utilization.

Overall, while Dana Inc's inventory turnover and working capital turnover ratios reflect efficient operational management, the lack of data for receivables and payables turnover ratios highlights areas where further information or analysis may be needed to fully evaluate the company's financial performance.

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Average number of days

An analysis of Dana Inc's activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH):
- In 2020, the company had 64.67 days of inventory on hand, which increased to 70.41 days in 2021 before decreasing to 62.52 days in 2022.
- By 2024, the days of inventory on hand further decreased to 60.02 days.
- The decreasing trend from 2021 to 2022 indicates that Dana Inc was able to manage its inventory more efficiently, potentially reducing holding costs and improving working capital management.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on the Days of Sales Outstanding (DSO) for Dana Inc for any of the years from 2020 to 2024. Without this data, it is challenging to assess the company's efficiency in collecting accounts receivable.

3. Number of Days of Payables:
- Similarly, the information on the Number of Days of Payables is not available for any of the years from 2020 to 2024.
- The absence of data on payables days limits the ability to evaluate Dana Inc's payment practices and its relationships with suppliers.

In conclusion, based on the available data, Dana Inc demonstrated improvements in managing its inventory levels over the years, as reflected in the decreasing trend in Days of Inventory on Hand. However, a more comprehensive analysis incorporating other activity ratios such as DSO and payables turnover would provide a fuller picture of the company's operational efficiency and working capital management.

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Long-term

Dana Inc's fixed asset turnover has shown a positive trend over the years, increasing from 2.91 in 2020 to 4.06 in 2022. This indicates that the company is generating more revenue per dollar of fixed assets invested, showcasing efficient utilization of its fixed assets to generate sales. However, there is missing data for 2023 and 2024, so further assessment for these years is not possible based on the provided information.

In terms of total asset turnover, Dana Inc demonstrated an increasing trend from 0.96 in 2020 to 1.37 in 2024. This suggests that the company is generating more revenue relative to its total assets over time, indicating improved efficiency in utilizing all assets to generate sales. The peak in 2022 at 1.36 shows the most effective overall asset utilization during the period under review. The slight decline in 2023 to 1.33 could warrant further investigation into potential factors influencing asset turnover during that period.