Dover Corporation (DOV)

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 5.94 5.71 5.24 5.22 5.35 5.13 5.14 5.29 5.70 6.27 6.57 6.72 7.09 6.53 5.77 5.74 5.60 5.58 5.30 5.43
Receivables turnover 5.80 5.39 5.35 5.76 5.53 5.51 5.36 5.52 5.79 5.64 5.53 5.49 5.81 5.48 5.87 5.76 5.86 5.65 5.50 5.57
Payables turnover 7.60 7.53 7.11 7.06 6.85 6.32 5.92 6.15 6.33 6.32 6.38 6.64 6.94 6.08 5.60 5.16 4.90 4.78 4.69 4.72
Working capital turnover 8.51 6.57 8.43 10.43 12.91 16.89 7.77 8.10 9.62 5.89 6.34 6.55 7.50 7.87 9.77 11.52 8.92 9.43 10.61 12.15

Dover Corp.'s activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales and cash flow.

1. Inventory Turnover: This ratio measures how many times the company's inventory is sold and replaced over a period. Dover Corp.'s inventory turnover has been relatively stable, ranging from 3.78 to 4.37. A higher turnover indicates efficient inventory management and could suggest effective sales strategies or demand forecasting.

2. Receivables Turnover: This ratio indicates how quickly the company collects outstanding receivables from customers. Dover Corp.'s receivables turnover has varied but generally stayed within a range of 5.43 to 5.89. A higher turnover reflects effective credit policies and timely collection efforts.

3. Payables Turnover: The payables turnover ratio measures how quickly the company pays its suppliers. Dover Corp.'s payables turnover has shown consistency, fluctuating between 4.35 and 5.59. A higher turnover suggests strong supplier relationships and efficient working capital management.

4. Working Capital Turnover: This ratio assesses how effectively the company utilizes its working capital to generate revenue. Dover Corp.'s working capital turnover has displayed significant fluctuations, with values ranging from 6.68 to 17.12. A higher turnover indicates efficient utilization of working capital resources to drive sales and operations.

Overall, Dover Corp. appears to have maintained reasonable efficiency in managing its assets and liabilities to support its sales activities. Monitoring these activity ratios over time can help evaluate the company's operational performance and identify areas for improvement in the management of working capital and inventory.

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 61.42 63.91 69.63 69.95 68.16 71.12 70.95 69.00 64.02 58.17 55.58 54.34 51.46 55.91 63.25 63.60 65.16 65.43 68.82 67.20
Days of sales outstanding (DSO) days 62.92 67.75 68.23 63.35 65.98 66.26 68.16 66.14 63.01 64.74 66.03 66.48 62.88 66.59 62.23 63.34 62.25 64.61 66.33 65.59
Number of days of payables days 48.04 48.47 51.31 51.72 53.28 57.76 61.66 59.31 57.71 57.73 57.22 54.97 52.58 59.99 65.15 70.68 74.41 76.34 77.83 77.25

To analyze Dover Corp.'s activity ratios, we need to look at the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables for the quarters provided.

1. Days of Inventory on Hand (DOH): This ratio measures how efficiently a company manages its inventory. A lower DOH indicates faster inventory turnover and better inventory management. Dover Corp.'s DOH has fluctuated over the quarters, ranging from 83.55 days to 96.65 days. The downward trend from Q2 2023 to Q4 2023 suggests an improvement in inventory management efficiency.

2. Days of Sales Outstanding (DSO): DSO shows how long it takes for a company to collect its accounts receivable. A lower DSO is generally favorable as it indicates quicker collection of revenues. Dover Corp.'s DSO has varied between 61.94 days and 67.26 days. The decrease in DSO from Q3 2022 to Q1 2023 followed by a slight increase in Q2 2023 to Q4 2023 suggests a mixed performance in collecting receivables efficiently.

3. Number of Days of Payables: This ratio assesses how long a company takes to pay its suppliers. A higher number of days of payables may indicate better cash flow management. Dover Corp.'s payables period ranged between 65.35 days and 83.99 days. The decreasing trend from Q2 2022 to Q1 2023 followed by a slight increase in Q2 2023 to Q4 2023 suggests potential challenges in managing payables efficiently.

In summary, while Dover Corp. has shown improvements in managing inventory over recent quarters, there are mixed results in terms of collecting receivables and paying suppliers. Further analysis and comparison with industry benchmarks would be beneficial to determine the company's overall performance in activity ratios and supply chain management.

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 8.05 8.41 8.22 8.32 8.35 8.60 8.42 8.32 8.15 8.41 8.20 7.73 7.36 7.50 7.81 8.37 8.47 8.74 8.70 8.87
Total asset turnover 0.73 0.77 0.77 0.78 0.77 0.77 0.75 0.76 0.75 0.77 0.76 0.73 0.72 0.73 0.74 0.79 0.82 0.83 0.81 0.82

The fixed asset turnover ratio for Dover Corp. has been relatively stable over the past eight quarters, ranging between 8.18 and 8.72. This indicates that the company generates between $8.18 and $8.72 in net sales for every dollar invested in fixed assets. A high fixed asset turnover ratio is generally a positive sign, suggesting efficient utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio for Dover Corp. has also been fairly consistent, varying between 0.74 and 0.79 over the same period. This ratio reflects how efficiently the company is using all its assets to generate revenue. A lower total asset turnover ratio compared to the fixed asset turnover ratio may indicate that the company relies more heavily on its fixed assets to generate sales.

Overall, the fixed asset turnover and total asset turnover ratios suggest that Dover Corp. has been effectively utilizing its assets to generate revenue, with a relatively stable performance in both aspects over the analyzed quarters.