ESAB Corp (ESAB)

Short-term

Turnover ratios

ESAB Corp's activity ratios provide insight into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory Turnover:
- ESAB Corp's inventory turnover has shown fluctuations over the years. It decreased slightly from 4.04 in 2020 to 3.79 in 2021 but then increased to 4.10 in 2022, 4.48 in 2023, and then dropped to 4.22 in 2024. A higher inventory turnover indicates that the company is selling its inventory more quickly, which may be a sign of effective inventory management.

2. Receivables Turnover:
- There is no data available for ESAB Corp's receivables turnover, which makes it challenging to assess how efficiently the company collects payment from its customers. A higher receivables turnover ratio would indicate faster collection of receivables.

3. Payables Turnover:
- Similarly, no data is provided for ESAB Corp's payables turnover ratio, preventing an assessment of how quickly the company pays its suppliers. A higher payables turnover suggests that the company is efficiently managing its payable obligations.

4. Working Capital Turnover:
- ESAB Corp's working capital turnover has varied over the years, with an increase from 5.67 in 2020 to 6.61 in 2021 and further to 6.70 in 2022. There was a significant jump to 7.35 in 2023, followed by a decrease to 5.31 in 2024. A higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate revenue.

In summary, ESAB Corp's activity ratios demonstrate mixed efficiency levels in managing inventory and working capital, with limited insight into receivables and payables turnover due to missing data. Monitoring these ratios over time can help identify trends and areas for improvement in the company's operational performance and financial management.

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Average number of days

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand measures how many days it takes for a company to sell its inventory. A lower number indicates that the company is selling its inventory more quickly.
- ESAB Corp's DOH has shown some fluctuations over the years, ranging from 81.52 days in 2023 to 96.42 days in 2021.
- The company seems to have improved its inventory management efficiency by reducing the number of days required to sell its inventory from 96.42 days in 2021 to 81.52 days in 2023.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the data provided does not include information on Days of Sales Outstanding (DSO). DSO measures how quickly a company collects its accounts receivable from customers.
- Without this information, it is challenging to assess ESAB Corp's effectiveness in collecting outstanding payments from customers.

3. Number of Days of Payables:
- Similarly, the data lacks information on the Number of Days of Payables. This ratio indicates how long it takes for a company to pay its suppliers.
- Without this data, it is difficult to evaluate ESAB Corp's efficiency in managing its payables.

Overall, while we can see some improvement in ESAB Corp's inventory management efficiency based on the Days of Inventory on Hand data, a complete analysis of the company's activity ratios is not possible without information on Days of Sales Outstanding and Number of Days of Payables.

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Long-term

ESAB Corp's long-term activity ratios indicate how efficiently the company is utilizing its assets to generate sales. The Fixed Asset Turnover ratio has shown a positive trend over the years, increasing from 4.93 in 2020 to 9.12 in 2022. This signifies that ESAB Corp is generating more revenue per dollar of fixed assets invested, which is a positive indication of improved asset utilization.

On the other hand, the Total Asset Turnover ratio has been somewhat fluctuating, reaching its peak at 0.72 in 2023. This ratio measures how efficiently the company is using all its assets to generate sales. Although the ratio dipped slightly to 0.68 in 2024, it is important to note that the ratios have generally remained in the range of 0.58 to 0.72 over the period, indicating stable asset turnover efficiency.

Overall, the increasing trend in Fixed Asset Turnover and the stable values of Total Asset Turnover suggest that ESAB Corp has been effectively managing its assets to generate sales, showcasing the company's ability to efficiently utilize its fixed and total assets in the long term.