Dana Inc (DAN)
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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.13 | 6.01 | 5.98 | 5.96 | 6.29 | 6.16 | 5.86 | 5.45 | 5.51 | 5.42 | 5.70 | 5.78 | 6.11 | 4.59 | 4.58 | 5.21 | 5.40 | 6.73 | 6.29 | 5.93 |
| Receivables turnover | 6.15 | 5.65 | 5.53 | 5.45 | 6.22 | 5.54 | 5.23 | 4.80 | 5.54 | 5.27 | 5.20 | 4.41 | 4.79 | 4.88 | 6.63 | 6.37 | 6.34 | 5.73 | 5.08 | 4.99 |
| Payables turnover | 5.85 | 5.47 | 5.27 | 5.35 | 5.50 | 5.37 | 5.29 | 5.18 | 5.48 | 5.54 | 5.21 | 4.74 | 5.28 | 4.20 | 6.42 | 5.35 | 5.13 | 6.46 | 5.76 | 5.25 |
| Working capital turnover | 6.92 | 6.75 | 6.42 | 7.51 | 7.43 | 7.52 | 6.99 | 6.56 | 6.22 | 6.05 | 5.82 | 5.23 | 5.20 | 3.89 | 4.25 | 6.68 | 6.46 | 6.63 | 6.37 | 6.08 |
Dana Inc's activity ratios reflect the efficiency of the company in managing its assets and liabilities during the financial periods provided.
1. Inventory Turnover: Dana Inc's inventory turnover has been relatively stable around 5.5 to 5.8 times annually, indicating that the company efficiently sells through its inventory. A higher turnover ratio suggests that the company is effectively managing its inventory levels.
2. Receivables Turnover: The receivables turnover ratio has shown some fluctuations but generally indicates that Dana Inc is collecting its receivables efficiently. The company collected its receivables approximately 5.5 to 6.4 times per year, which suggests effective credit management.
3. Payables Turnover: Dana Inc's payables turnover has also fluctuated but has remained relatively stable between 4.9 to 5.5 times annually. This indicates that the company is able to manage its trade payables effectively, possibly taking advantage of credit terms offered by suppliers.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively Dana Inc utilizes its working capital to generate sales. The company's turnover has fluctuated but has generally remained above 6.5 times annually, indicating efficient use of working capital to drive sales.
Overall, Dana Inc's activity ratios suggest that the company is managing its assets and liabilities efficiently to generate sales and maintain a healthy level of working capital turnover.
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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.55 | 60.72 | 61.02 | 61.28 | 58.05 | 59.26 | 62.28 | 66.99 | 66.30 | 67.32 | 64.08 | 63.16 | 59.69 | 79.54 | 79.68 | 70.08 | 67.59 | 54.23 | 57.99 | 61.54 |
| Days of sales outstanding (DSO) | days | 59.35 | 64.65 | 65.95 | 67.03 | 58.72 | 65.88 | 69.84 | 75.97 | 65.88 | 69.28 | 70.22 | 82.83 | 76.19 | 74.78 | 55.06 | 57.32 | 57.62 | 63.66 | 71.80 | 73.08 |
| Number of days of payables | days | 62.39 | 66.74 | 69.31 | 68.25 | 66.31 | 67.98 | 69.00 | 70.52 | 66.60 | 65.88 | 70.02 | 77.00 | 69.15 | 86.86 | 56.83 | 68.23 | 71.11 | 56.52 | 63.35 | 69.51 |
Activity ratios like Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables are crucial in assessing the efficiency of a company's operations and management of working capital.
From the data provided, we observe fluctuations in Dana Inc's activity ratios over the past eight quarters.
Days of Inventory on Hand (DOH):
- The trend indicates an increase in inventory holding periods from Q4 2022 to Q2 2023, with a slight decrease in Q4 2023 compared to Q2 2023.
- Dana Inc seems to have been carrying inventory for a longer period in Q1 and Q2 of each year, which might indicate slower inventory turnover during these periods.
- The company should focus on optimizing inventory management to avoid tying up excess funds in inventory and potentially facing obsolescence risks.
Days of Sales Outstanding (DSO):
- DSO values show fluctuations over the quarters, with the highest values in Q1 and Q2 of each year.
- A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is favorable as it improves cash flow.
- Dana Inc should monitor and potentially improve its credit policies to ensure timely collection of receivables.
Number of Days of Payables:
- The trend in payables days reflects a consistent pattern of payment extending over the quarters, with the highest values in Q1 and Q2 of each year.
- A longer payables period indicates that the company is taking more time to pay its suppliers, potentially signaling cash flow advantages but could strain supplier relationships if extended too long.
- Dana Inc should ensure a balance in managing its payables to maintain good relationships with suppliers while optimizing its cash flow position.
Overall, Dana Inc should focus on optimizing its working capital management by improving inventory turnover, reducing DSO, and effectively managing its payables to enhance operational efficiency and maintain healthy cash flow levels.
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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.49 | 4.65 | 4.56 | 4.57 | 4.57 | 4.69 | 4.41 | 4.09 | 4.00 | 3.99 | 3.84 | 3.36 | 3.11 | 3.19 | 3.29 | 3.81 | 3.76 | 3.87 | 3.73 | 3.60 |
| Total asset turnover | 1.30 | 1.32 | 1.29 | 1.29 | 1.35 | 1.27 | 1.19 | 1.12 | 1.15 | 1.14 | 1.10 | 0.97 | 0.95 | 0.91 | 1.02 | 1.15 | 1.18 | 1.18 | 1.13 | 1.11 |
Dana Inc's fixed asset turnover has shown consistency over the quarters, ranging between 4.16 to 4.75 times. This indicates that the company is efficient in generating revenue from its fixed assets. The stability of this ratio suggests that Dana Inc is effectively utilizing its fixed assets to generate sales.
In terms of total asset turnover, Dana Inc's ratio has fluctuated between 1.14 to 1.36 times over the past eight quarters. Although there is some variability, the overall trend indicates that the company is efficiently utilizing its total assets to generate sales. A total asset turnover ratio above 1 suggests that Dana Inc is generating more in sales than the value of its total assets, which is a positive indication of operational efficiency.
Overall, the long-term activity ratios for Dana Inc point towards effective asset utilization and efficiency in revenue generation. The company seems to be effectively managing its fixed and total assets to drive sales growth and maximize profitability.