Dover Corporation (DOV)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.18 | 4.37 | 3.98 | 4.15 | 5.04 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 3.39 | 8.64 | 13.09 | 9.75 | 7.59 |
Dover Corporation's inventory turnover ratio has shown a decline from 5.04 in December 2020 to 4.18 in December 2024. This could indicate that the company is taking longer to sell its inventory, which may lead to increased holding costs or potential obsolescence.
The receivables turnover ratio data is not available, suggesting that the company may not be efficiently collecting its accounts receivable, or there could be other factors affecting this metric that are not disclosed in the data provided.
Similarly, the payables turnover ratio data is also not available, making it challenging to assess how efficiently the company is managing its accounts payable and the relationships with its suppliers.
The working capital turnover ratio has fluctuated over the years, with a notable increase in 2022 to 13.09 before dropping to 3.39 in 2024. This suggests that the company might be experiencing changes in its working capital management efficiency, possibly due to shifts in operational activities or changes in business strategies.
In summary, while the inventory turnover and working capital turnover ratios provide some insights into Dover Corporation's operational efficiency, the lack of data on receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity ratios.
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 | 87.29 | 83.55 | 91.62 | 88.05 | 72.47 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The trend analysis of Dover Corporation's activity ratios indicates a fluctuation in inventory management efficiency over the years.
1. Days of Inventory on Hand (DOH):
- On December 31, 2020, the company had 72.47 days of inventory on hand, which increased to 88.05 days by December 31, 2021.
- Subsequently, the DOH further rose to 91.62 days by December 31, 2022, showing a continuing trend of higher inventory levels.
- However, there was a slight decrease in the DOH to 83.55 days by December 31, 2023, before increasing again to 87.29 days by December 31, 2024.
2. Days of Sales Outstanding (DSO):
- The DSO data is not provided for any of the years, which indicates that Dover Corporation's accounts receivable turnover and collection efficiency are not available for analysis.
3. Number of Days of Payables:
- Similarly, the number of days of payables data is also not available for any of the years, making it challenging to assess the company's payment terms and ability to manage its accounts payable effectively.
In conclusion, while inventory management efficiency has shown some fluctuations over the years, the lack of data on sales outstanding and payables days limits a comprehensive analysis of Dover Corporation's overall working capital management performance.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 8.47 | 8.26 | 7.45 |
| Total asset turnover | 0.62 | 0.74 | 0.78 | 0.76 | 0.73 |
Dover Corporation's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, provide insights into the company's efficiency in utilizing its assets over time.
The Fixed Asset Turnover ratio measures how effectively the company generates revenue from its fixed assets. From 2020 to 2022, the company's Fixed Asset Turnover ratio has shown improvement, increasing from 7.45 to 8.47. This suggests that Dover Corporation has been able to generate more revenue from its fixed assets each year, indicating better utilization and efficiency in managing its long-term assets.
However, it's worth noting that there is missing data for the years 2023 and 2024, which may hinder a complete trend analysis. It would be beneficial to have data for those years to assess the continued performance of the Fixed Asset Turnover ratio.
Moving on to the Total Asset Turnover ratio, this metric indicates how efficiently the company is using all its assets to generate revenue. Dover Corporation's Total Asset Turnover has shown variability over the years, increasing from 0.73 in 2020 to 0.78 in 2022 but then decreasing to 0.62 by 2024.
The increase in Total Asset Turnover up to 2022 suggests that the company was effectively generating revenue from its total assets. However, the decline in 2024 may indicate a potential decrease in efficiency in utilizing its assets to generate revenue.
Overall, while the Fixed Asset Turnover ratio shows improved efficiency in utilizing fixed assets, the Total Asset Turnover ratio indicates a mixed performance in utilizing all assets. The missing data for 2023 and 2024, as well as the decrease in Total Asset Turnover by 2024, warrant further investigation into Dover Corporation's asset management and revenue generation strategies.