DXP Enterprises Inc (DXPE)
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 | 15.05 | 14.90 | 14.70 | 13.66 | 13.83 | 9.94 | 10.21 | 10.28 | 10.82 | 1.04 | 0.86 | 0.56 | 1.11 | 9.18 | 8.62 | 9.03 | 9.34 | 9.18 | 9.35 | 9.67 |
| Receivables turnover | 5.22 | 5.07 | 4.92 | 4.96 | 4.49 | 4.73 | 4.56 | 5.09 | 4.80 | 4.79 | 4.92 | 5.42 | — | 6.65 | 7.49 | 6.38 | 6.66 | 5.99 | 5.92 | 6.21 |
| Payables turnover | 16.19 | 15.44 | 16.42 | 14.05 | 13.92 | 13.32 | 11.79 | 14.12 | 14.02 | 1.21 | 1.11 | 0.83 | 1.67 | 13.38 | 13.78 | 14.54 | 15.81 | 14.56 | 13.40 | 12.73 |
| Working capital turnover | 3.83 | 5.53 | 5.33 | 4.93 | 4.79 | 5.89 | 5.79 | 4.97 | 4.89 | 4.68 | 4.49 | 3.48 | 3.79 | 4.28 | 4.59 | 4.80 | 4.64 | 4.87 | 5.07 | 5.22 |
DXP Enterprises Inc's activity ratios reflect the efficiency of the company in managing its inventory, receivables, payables, and working capital.
1. Inventory turnover: The company's inventory turnover ratio has shown a generally increasing trend over the periods analyzed, indicating that DXP Enterprises is effectively managing its inventory levels and selling its products efficiently. The significant increase in the ratio from 1.04 in Sep 2021 to 15.05 in Dec 2023 is particularly noteworthy.
2. Receivables turnover: The receivables turnover ratio measures how efficiently the company is collecting on its credit sales. DXP Enterprises' receivables turnover ratio has fluctuated over the periods, with some increases and decreases. A high turnover ratio suggests that the company is collecting its receivables quickly, while a low ratio may indicate issues with collecting payments.
3. Payables turnover: The payables turnover ratio indicates how quickly the company is paying its suppliers. DXP Enterprises' payables turnover ratio has also varied, showing some fluctuations. A high ratio implies that the company is efficiently managing its payables, while a low ratio might suggest delays in payment.
4. Working capital turnover: This ratio reflects how efficiently the company is utilizing its working capital to generate sales revenue. DXP Enterprises has maintained a relatively stable working capital turnover ratio over the periods, indicating consistent operating efficiency. A higher ratio indicates better management of working capital.
Overall, DXP Enterprises Inc's activity ratios suggest that the company is effectively managing its resources to support its sales and operations. The improvements in inventory turnover and stable working capital turnover demonstrate good operational efficiency, while fluctuations in receivables and payables turnover may require further analysis to understand the underlying factors influencing these metrics.
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 | 24.25 | 24.50 | 24.83 | 26.73 | 26.39 | 36.73 | 35.77 | 35.50 | 33.74 | 351.69 | 424.75 | 646.38 | 327.59 | 39.75 | 42.37 | 40.41 | 39.07 | 39.77 | 39.05 | 37.75 |
| Days of sales outstanding (DSO) | days | 69.91 | 71.95 | 74.25 | 73.55 | 81.31 | 77.13 | 79.99 | 71.71 | 76.09 | 76.22 | 74.25 | 67.32 | — | 54.90 | 48.74 | 57.24 | 54.83 | 60.92 | 61.62 | 58.75 |
| Number of days of payables | days | 22.54 | 23.64 | 22.23 | 25.97 | 26.23 | 27.40 | 30.97 | 25.85 | 26.03 | 302.13 | 329.33 | 441.62 | 218.85 | 27.28 | 26.48 | 25.10 | 23.09 | 25.07 | 27.24 | 28.67 |
Based on the activity ratios of DXP Enterprises Inc provided in the table, we can observe the following trends:
1. Days of Inventory on Hand (DOH):
- DXP Enterprises Inc has shown improvement in managing its inventory levels over the analyzed periods with a decreasing trend in DOH. This indicates that the company is selling its inventory at a faster rate compared to before. A lower DOH reflects efficient inventory management and a potential for decreased carrying costs.
2. Days of Sales Outstanding (DSO):
- The DSO for DXP Enterprises Inc has fluctuated over the periods, but there seems to be a general trend towards reducing the number of days it takes to collect revenue from sales. A decreasing DSO implies a more effective accounts receivable management system and a prompter collection of outstanding payments from customers.
3. Number of Days of Payables:
- The number of days of payables for DXP Enterprises Inc has shown some variability over time. However, there appears to be a trend towards shorter payment periods to suppliers. A lower number of days of payables indicates that the company is settling its outstanding obligations to suppliers more quickly, which could be beneficial for maintaining good supplier relationships.
Overall, the analysis of DXP Enterprises Inc's activity ratios suggests that the company has been making efforts to improve its operational efficiency in terms of managing inventory, collecting receivables, and paying its liabilities. These trends are generally positive indicators of effective working capital management within the business.
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 | 32.56 | 28.97 | 33.75 | 32.46 | 31.58 | 28.82 | 24.99 | 23.21 | 21.07 | 20.05 | 18.49 | 17.32 | 17.46 | 18.38 | 18.45 | 19.46 | 19.57 | 21.67 | 22.49 | 23.84 |
| Total asset turnover | 1.38 | 1.56 | 1.55 | 1.47 | 1.40 | 1.35 | 1.27 | 1.29 | 1.22 | 1.14 | 1.08 | 1.03 | 1.14 | 1.43 | 1.48 | 1.57 | 1.59 | 1.60 | 1.59 | 1.58 |
Based on the long-term activity ratios of DXP Enterprises Inc, we can observe the following trends:
1. Fixed Asset Turnover: DXP Enterprises Inc's fixed asset turnover has shown varying levels over the periods analyzed. The company seems to have effectively utilized its fixed assets to generate sales, with the ratio ranging from 17.32 to 33.75. The trend indicates an improvement in efficiently utilizing fixed assets in generating sales, reaching a peak of 33.75 at the end of December 2023.
2. Total Asset Turnover: The total asset turnover of DXP Enterprises Inc has also fluctuated, ranging from 1.03 to 1.59 over the periods analyzed. The ratio of total asset turnover indicates the efficiency of the company in generating sales from all its assets. The company's ability to generate sales from its assets improved gradually, with the ratio increasing to 1.56 by the end of September 2023 and further to 1.59 by December 2019, demonstrating efficient asset utilization.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that DXP Enterprises Inc has been able to manage its assets effectively to generate sales over the analyzed periods. This efficient asset utilization reflects positively on the company's operational performance and may indicate effective management of resources to drive revenue growth.