DXP Enterprises Inc (DXPE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 12.08 | 11.30 | 10.44 | 7.78 | 7.48 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 4.31 | 3.96 | 4.88 | 4.98 | 3.83 |
DXP Enterprises Inc has shown a positive trend in its inventory turnover ratio over the years, indicating an improvement in managing its inventory levels efficiently. The company's inventory turnover has increased steadily from 7.48 in 2020 to 12.08 in 2024, reflecting a more rapid turnover of inventory which can lead to better cash flow and reduced carrying costs.
On the other hand, the lack of data on receivables turnover and payables turnover ratios suggests that DXP Enterprises Inc may not have significant accounts receivable or accounts payable balances relative to its sales and purchases, respectively. This could imply efficient collection of receivables and management of payables, but more data is needed for a thorough assessment.
The working capital turnover ratio has fluctuated slightly over the years, indicating varying efficiency in utilizing the company's working capital to generate sales. The ratio peaked in 2021 at 4.98, which suggests that for each dollar invested in working capital, the company generated $4.98 in sales. This metric declined in 2023 but rebounded in 2024 to 4.31, indicating that DXP Enterprises Inc managed to improve its working capital efficiency in the most recent year.
Overall, while DXP Enterprises Inc has shown strength in its inventory turnover and working capital turnover ratios, further insights could be gained by examining the receivables turnover and payables turnover ratios in the future to assess the company's overall efficiency in managing its operating cycle.
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 | 30.21 | 32.29 | 34.95 | 46.89 | 48.80 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for DXP Enterprises Inc have been declining over the years, from 48.80 days as of December 31, 2020, to 30.21 days as of December 31, 2024. This indicates that the company has been able to manage its inventory more efficiently, reducing the number of days it takes to sell its inventory.
On the other hand, the Days of Sales Outstanding (DSO) and the Number of Days of Payables data are not available, suggesting that the company may not have disclosed this information or operates in a manner where these metrics are not applicable or relevant to their business operations.
Overall, the trend of decreasing Days of Inventory on Hand is a positive sign as it shows that DXP Enterprises Inc is improving its inventory management efficiency, which can lead to a more streamlined operation and better cash flow management. However, a more complete analysis would require additional information on the DSO and payables periods to assess the company's overall liquidity and efficiency in converting sales into cash.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 32.22 | 19.58 | 8.97 |
| Total asset turnover | 1.34 | 1.43 | 1.43 | 1.23 | 1.18 |
DXP Enterprises Inc's fixed asset turnover ratio has shown a significant improvement over the years, starting at 8.97 in 2020 and steadily increasing to 19.58 in 2021, 32.22 in 2022. However, the data is not available for 2023 and 2024. This indicates that the company is generating a higher level of sales relative to its investment in fixed assets.
On the other hand, the total asset turnover ratio has also exhibited a positive trend, rising from 1.18 in 2020 to 1.23 in 2021, further increasing to 1.43 in both 2022 and 2023 before slightly declining to 1.34 in 2024. This indicates that DXP Enterprises Inc is effectively utilizing its total assets to generate sales revenue.
Overall, these long-term activity ratios suggest that the company is efficiently managing its assets to generate sales, with a particularly notable improvement in its fixed asset turnover over the years, indicating increased efficiency in utilizing its fixed assets to drive revenue growth.