Edgewell Personal Care Co (EPC)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.72 | 2.85 | 2.63 | 2.53 | 2.66 | 2.63 | 2.47 | 2.40 | 2.87 | 3.07 | 2.78 | 2.83 | 3.29 | 3.08 | 3.00 | 3.16 | 3.40 | 3.40 | 3.40 | 3.19 |
| Receivables turnover | 13.73 | 10.50 | 10.86 | 12.80 | 13.34 | 11.85 | 9.98 | 13.36 | 12.23 | 10.83 | 9.40 | 10.41 | 10.47 | 10.60 | 8.19 | 9.24 | 9.49 | 9.14 | 8.62 | 9.77 |
| Payables turnover | 5.92 | 6.22 | 5.95 | 6.70 | 6.74 | 5.49 | 5.45 | 5.30 | 5.64 | 5.32 | 5.31 | 5.29 | 5.43 | 5.12 | 5.48 | 5.83 | 5.88 | 6.06 | 6.07 | 6.01 |
| Working capital turnover | 6.05 | 5.36 | 5.02 | 4.22 | 5.13 | 5.51 | 5.06 | 4.30 | 5.39 | 6.07 | 5.01 | 4.35 | 3.49 | 3.66 | 3.86 | 3.86 | 4.12 | 2.98 | 4.20 | 4.42 |
The activity ratios of Edgewell Personal Care Co reflect the company's efficiency in managing its inventory, receivables, payables, and working capital over the specified periods.
Inventory turnover indicates the number of times a company sells and replaces its inventory during a period. Edgewell's inventory turnover has been relatively stable around 2.5 to 3.5 times per year, with a slight decline from the previous quarter.
Receivables turnover measures how quickly a company collects its accounts receivable. Edgewell's receivables turnover has shown variability over the periods, ranging from around 8 to 14 times per year. The higher turnover figures suggest a more efficient collection process.
Payables turnover calculates how quickly a company pays its suppliers. Edgewell's payables turnover has been consistent, hovering around 5 to 6 times per year. A higher turnover ratio may indicate effective management of payables.
Working capital turnover assesses the efficiency of managing working capital to generate sales. Edgewell's working capital turnover ratio has fluctuated but generally stayed within the range of 3.5 to 6 times per year. Higher turnover values imply that the company is effectively using its working capital to support operations.
Overall, Edgewell's activity ratios suggest reasonable efficiency in managing its inventory, receivables, payables, and working capital, with room for improvement in certain areas to enhance overall operational effectiveness.
Average number of days
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 134.22 | 128.13 | 138.55 | 144.04 | 137.11 | 138.61 | 147.62 | 151.95 | 127.01 | 118.85 | 131.37 | 129.06 | 110.96 | 118.60 | 121.59 | 115.42 | 107.27 | 107.33 | 107.39 | 114.33 |
| Days of sales outstanding (DSO) | days | 26.58 | 34.76 | 33.62 | 28.51 | 27.36 | 30.79 | 36.56 | 27.32 | 29.83 | 33.70 | 38.82 | 35.07 | 34.87 | 34.42 | 44.58 | 39.52 | 38.47 | 39.95 | 42.37 | 37.37 |
| Number of days of payables | days | 61.67 | 58.66 | 61.32 | 54.51 | 54.13 | 66.51 | 66.94 | 68.92 | 64.68 | 68.65 | 68.79 | 68.98 | 67.24 | 71.28 | 66.59 | 62.57 | 62.12 | 60.22 | 60.09 | 60.78 |
Edgewell Personal Care Co's activity ratios provide insight into the efficiency of the company's operations in managing its inventory, receivables, and payables.
Days of Inventory on Hand (DOH) measures how many days, on average, the company holds its inventory before selling it. Edgewell's DOH has varied over the periods, with a recent peak of 151.95 days in December 2022. The current DOH of 134.22 days as of September 30, 2024, indicates that the company is holding inventory for approximately 4.5 months before it is sold.
Days of Sales Outstanding (DSO) represents the average number of days it takes for the company to collect outstanding receivables. Edgewell's DSO has fluctuated but improved in recent quarters, with a decrease from 44.58 days in March 2021 to 26.58 days in September 2024. A lower DSO suggests that the company is collecting its receivables more quickly, which is a positive indicator of efficient credit management.
Number of Days of Payables indicates the average number of days the company takes to pay its suppliers. Edgewell's payables days have remained relatively stable, ranging from 60 to 70 days over the periods. The current value of 61.67 days as of September 30, 2024, suggests that the company takes around two months to settle its payables.
Overall, Edgewell's activity ratios reflect an improvement in managing inventory and receivables efficiently, while maintaining stable payment terms with suppliers. The company's ability to reduce inventory holding periods and collect receivables more promptly can enhance cash flow and overall operational performance.
Long-term
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 6.46 | 6.98 | 6.94 | 6.81 | 6.66 | 6.63 | 6.51 | 6.25 | 6.29 | 6.26 | 5.99 | 5.89 | 5.76 | 5.68 | 5.38 | 5.28 | 5.26 | 5.43 | 5.68 | 5.56 |
| Total asset turnover | 0.60 | 0.61 | 0.60 | 0.60 | 0.60 | 0.60 | 0.59 | 0.57 | 0.58 | 0.59 | 0.56 | 0.55 | 0.57 | 0.56 | 0.55 | 0.56 | 0.55 | 0.57 | 0.64 | 0.65 |
Edgewell Personal Care Co's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in utilizing its assets to generate sales.
1. Fixed asset turnover:
- The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. Edgewell has shown a consistent trend of improvement in this ratio over the past years, indicating that the company is effectively utilizing its fixed assets to generate sales.
- The ratio has been steadily increasing from 5.56 in December 2019 to 6.98 in June 2024, with some fluctuations in between. This suggests that Edgewell is effectively managing and using its fixed assets to drive revenue growth.
- The higher fixed asset turnover ratio implies that Edgewell has been able to produce more sales per dollar of fixed assets invested, which is generally a positive sign of operational efficiency.
2. Total asset turnover:
- The total asset turnover ratio reflects how well a company is able to generate sales from its total assets, both fixed and current. Edgewell's total asset turnover ratio has been relatively stable around the range of 0.55 to 0.61 over the past years.
- Although the total asset turnover ratio is lower compared to the fixed asset turnover ratio, it is important to consider the nature of the company's business. A lower ratio may imply that Edgewell has a significant portion of its assets that are not actively used to generate sales.
- The stability of the total asset turnover ratio suggests that Edgewell is maintaining a consistent level of sales relative to its total assets. However, there might be room for improvement in optimizing the utilization of all assets to enhance revenue generation.
Overall, based on the trend in these activity ratios, Edgewell Personal Care Co has shown efficiency in utilizing its fixed assets to drive revenue growth. However, there may be opportunities for further optimization in leveraging its total assets to increase overall sales productivity.