ESAB Corp (ESAB)

Short-term

Turnover ratios

ESAB Corp's inventory turnover ratio has shown a fluctuating trend over the period from December 31, 2021, to December 31, 2024. The ratio has generally been increasing, indicating that ESAB Corp has been able to sell its inventory more efficiently. This improvement suggests better management of inventory levels and increased sales.

On the other hand, the receivables turnover ratio and payables turnover ratio for ESAB Corp have not been provided, indicating a lack of data availability for assessing the efficiency of accounts receivable and accounts payable management. Without these ratios, it is challenging to evaluate the company's effectiveness in collecting receivables and paying its suppliers.

ESAB Corp's working capital turnover ratio has experienced significant fluctuations during the period under review. The ratio has shown a downward trend since December 31, 2023, reaching its lowest point on June 30, 2024. A declining working capital turnover ratio may suggest inefficiencies in the utilization of working capital to generate sales revenue. This trend warrants further investigation into ESAB Corp's management of working capital and its impact on revenue generation.

In conclusion, while ESAB Corp's inventory turnover has shown improvement, the lack of data for receivables and payables turnover ratios limits the comprehensive analysis of the company's efficiency in managing its working capital and operating cycle. Additional information and context would be necessary to provide a more comprehensive assessment of ESAB Corp's activity ratios.

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Average number of days

ESAB Corp's Days of Inventory on Hand (DOH) has shown a downward trend over the years, indicating that the company has been able to manage its inventory levels more efficiently. The DOH decreased from 96.42 days as of December 31, 2021, to 85.73 days as of December 31, 2024. This suggests that ESAB Corp has been able to sell its inventory quicker, which can lead to lower holding costs and potentially improved cash flow.

On the other hand, the data for Days of Sales Outstanding (DSO) and Number of Days of Payables is missing, which hinders a comprehensive analysis of ESAB Corp's receivables and payables management. Without this information, it is challenging to assess how quickly the company collects revenue from customers and pays its suppliers.

Overall, ESAB Corp seems to have improved its inventory management efficiency based on the decreasing trend in the Days of Inventory on Hand ratio. However, further information on DSO and payables turnover would provide a more complete picture of the company's liquidity and working capital management.

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Long-term

ESAB Corp's Fixed Asset Turnover ratio fluctuated over the years, ranging from a low of 6.66 in June 2022 to a high of 9.63 in September 2022. The company's ability to generate sales from its fixed assets improved towards the end of the period, with the ratio reaching 9.54 in June 2023. However, there are missing data points in December 2021, December 2023, and the subsequent years, which makes it challenging to assess the trend accurately.

Regarding Total Asset Turnover, ESAB Corp's performance varied slightly, with the ratio hovering around 0.70 to 0.73. There was a slight improvement in the ratio towards the end of the period, reaching 0.73 in March 2024. The company was able to generate sales relative to its total assets consistently, although the ratio showed some fluctuations.

In conclusion, ESAB Corp's fixed asset turnover improved over the years, while the total asset turnover remained relatively stable. However, the missing data points for certain periods limit a comprehensive analysis of the long-term activity ratios for the company.