Dover Corporation (DOV)

Short-term

Turnover ratios

Based on the data provided for Dover Corporation, we can analyze the activity ratios as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Dover Corporation's inventory turnover has been gradually decreasing over the years, indicating that it is taking longer to sell its inventory.
- The average inventory turnover for the last reporting period was approximately 4.35 times per year.

2. Receivables Turnover:
- Unfortunately, there is no data available for receivables turnover, which measures how effectively a company is collecting on its credit sales. Without this data, it is challenging to assess Dover Corporation's performance in this area.

3. Payables Turnover:
- Similar to receivables turnover, there is no data available for payables turnover, which reflects how quickly a company is paying its suppliers. Without this information, it is challenging to evaluate Dover Corporation's payment practices.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently a company is utilizing its working capital. Dover Corporation's working capital turnover has shown fluctuations over the years, with a significant spike in September 2022, indicating a more effective use of working capital at that time.
- The average working capital turnover for the last reporting period was approximately 8.38 times per year.

In conclusion, Dover Corporation's activity ratios suggest varying efficiency levels in managing its inventory and working capital. However, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall working capital management and effectiveness in collecting receivables and paying suppliers.

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Average number of days

Based on the data provided for Dover Corporation, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The DOH for Dover Corporation has shown fluctuating trends over the periods analyzed. It increased from 69.76 days on March 31, 2020, to a peak of 96.65 days on June 30, 2022, before declining to 82.28 days on December 31, 2024.
- Generally, a higher DOH indicates that the company is holding onto inventory for a longer period, which may tie up working capital and suggests potential inefficiencies in inventory management. The recent decrease in DOH could indicate improvements in inventory turnover efficiency.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO for Dover Corporation, indicating a lack of data on how efficiently the company is collecting its accounts receivable. The DSO ratio is useful for assessing the effectiveness of credit and collection policies.

3. Number of Days of Payables:
- Similar to DSO, there is no data available for the number of days of payables for Dover Corporation. The payables period can provide insights into how long the company takes to pay its suppliers, impacting its liquidity position and relationships with vendors.

Please note that a more comprehensive analysis incorporating all activity ratios (DOH, DSO, and payables) would provide a more holistic view of Dover Corporation's efficiency in managing its working capital and operational cycle.

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Long-term

The Fixed Asset Turnover ratio for Dover Corporation has shown a consistent improvement over the years, increasing from 8.40 in March 2020 to 8.47 in December 2022 before slightly dropping to 8.34 in June 2023. It then picked up again to reach 8.54 in September 2023, indicating that the company is effectively utilizing its fixed assets to generate revenue. This ratio measures how efficiently the company is generating sales from its investments in property, plant, and equipment.

On the other hand, the Total Asset Turnover ratio fluctuated more, starting at 0.79 in March 2020, dropping to 0.73 by December 2020, and then gradually recovering to 0.79 by March 2023. However, this ratio experienced more variability, dipping to 0.65 by December 2024. The Total Asset Turnover ratio reflects how well Dover Corporation is using all its assets to generate revenue.

Overall, the improvement in the Fixed Asset Turnover ratio suggests that Dover Corporation is becoming more efficient in utilizing its fixed assets to generate sales, while the fluctuations in the Total Asset Turnover ratio indicate varying levels of efficiency in utilizing all assets for revenue generation over the years.