DXP Enterprises Inc (DXPE)

Short-term

Turnover ratios

Based on the provided data for DXP Enterprises Inc, let's analyze the activity ratios over the years:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. It shows how many times the company's inventory is sold and replaced during a specific period.
- DXP Enterprises Inc's inventory turnover has shown an increasing trend from 6.84 in March 2020 to 12.08 in December 2024. This indicates that the company is selling its inventory at a faster pace over the years, which could imply effective inventory management or increasing sales.

2. Receivables Turnover:
- Unfortunately, the data provided does not contain information on the receivables turnover ratio. This ratio is essential for analyzing how quickly the company collects its accounts receivable from customers.

3. Payables Turnover:
- Similar to receivables turnover, the data does not include information on payables turnover. This ratio is crucial for assessing how efficiently the company pays its suppliers and manages its trade payables.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales.
- DXP Enterprises Inc's working capital turnover has fluctuated over the years, with some periods showing a declining trend and others showing an increasing trend. For instance, the ratio was 3.83 in December 2020 and increased to 5.61 in September 2024. This could imply variations in how effectively the company is using its working capital to generate revenues.

In conclusion, based on the available data, DXP Enterprises Inc has shown improvements in its inventory turnover and working capital turnover ratios, suggesting better efficiency in managing inventory and working capital. However, it is important to note the lack of data on receivables turnover and payables turnover, which are also critical indicators of the company's overall operational efficiency and liquidity management.

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Average number of days

Based on the provided data, let's analyze the activity ratios for DXP Enterprises Inc:

1. Days of Inventory on Hand (DOH):
- DXP Enterprises Inc's average days of inventory on hand have been relatively stable over the years, ranging from around 30 to 60 days.
- A decreasing trend in the days of inventory on hand can indicate more efficient management of inventory levels, while an increasing trend may suggest excess inventory or slower sales.
- The company's inventory management seems to have improved towards the end of the period, with a significant decrease in days of inventory on hand from 2022 to 2024, indicating better control over inventory levels.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on the days of sales outstanding (DSO) for DXP Enterprises Inc. DSO is a measure of how efficiently a company collects its accounts receivable, and a lower DSO is generally preferable as it indicates faster cash conversion from sales.

3. Number of Days of Payables:
- Similar to DSO, the data does not include information on the number of days of payables for DXP Enterprises Inc. This ratio evaluates how long a company takes to pay its suppliers, with a longer period indicating a potential liquidity advantage by delaying payments.

In conclusion, based on the available data, DXP Enterprises Inc appears to have managed its inventory efficiently with a decreasing trend in days of inventory on hand. However, without information on DSO and days of payables, a complete assessment of the company's activity ratios and working capital management cannot be provided.

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Long-term

DXP Enterprises Inc's fixed asset turnover ratio has shown some volatility over the past few years, ranging from a low of 8.97 in December 2020 to a high of 34.62 in June 2023. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales. The company's fixed asset turnover ratio peaked in the first quarter of 2024 at 34.50 before stabilizing around this elevated level.

In contrast, DXP Enterprises' total asset turnover ratio, which reflects how well the company is using all its assets to generate sales, has also fluctuated over the same period. The ratio ranged from a low of 1.09 in the first quarter of 2021 to a high of 1.61 in the third quarter of 2023. The total asset turnover ratio has generally shown an upward trend, indicating improved efficiency in generating sales from its total asset base.

Overall, both fixed asset turnover and total asset turnover ratios demonstrate that DXP Enterprises has been effectively utilizing its assets to generate sales. The fluctuations in these ratios may be influenced by changes in business operations, investments in fixed assets, or shifts in sales volume. Continued monitoring of these ratios will provide insight into the company's operational efficiency and asset utilization in the future.