ESCO Technologies Inc (ESE)

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 2.98 2.77 2.83 2.90 3.15 2.96 3.00 2.99 3.24 2.80 2.73 2.75 3.02 3.17 3.04 3.13 3.39 2.99 3.20 3.30
Receivables turnover 4.20 4.63 5.22 4.93 4.77 4.85 4.99 5.51 5.18 4.76 5.45 5.36 4.88 5.30 5.68 5.02 5.05 5.48 4.99 4.96
Payables turnover 6.33 7.29 7.30 7.54 6.67 7.43 7.00 7.37 6.67 7.06 6.66 7.13 7.85 8.79 9.38 10.21 9.07 8.37 8.43 8.34
Working capital turnover 3.17 2.90 2.94 3.21 3.56 3.27 3.31 3.64 3.35 3.07 3.25 3.33 3.74 3.30 3.90 3.65 3.87 2.79 3.00 3.24

ESCO Technologies Inc's activity ratios show the efficiency of the company in managing its resources.

1. Inventory turnover: ESCO's inventory turnover has fluctuated over the periods but generally remains around 3, indicating that the company is turning over its inventory approximately 3 times a year. This suggests that ESCO is efficient in managing its inventory levels.

2. Receivables turnover: ESCO's receivables turnover has also varied, but it tends to be above 4, showing that the company collects its receivables efficiently. A higher turnover ratio indicates that ESCO is collecting its receivables at a faster rate.

3. Payables turnover: ESCO's payables turnover has been consistently above 6, which indicates that the company is managing its payables effectively. A higher payables turnover ratio implies that ESCO is paying its suppliers in a timely manner.

4. Working capital turnover: ESCO's working capital turnover ratios have fluctuated but generally remain around 3, showing that the company is efficient in utilizing its working capital to generate sales. A higher turnover ratio indicates that ESCO is effectively using its working capital to generate revenues.

Overall, ESCO Technologies Inc seems to be efficiently managing its resources based on its activity ratios, which is a positive sign for the company's operational efficiency.

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 122.59 131.58 128.95 125.72 115.76 123.20 121.62 122.05 112.81 130.22 133.59 132.75 120.68 115.11 120.15 116.53 107.75 122.25 113.89 110.57
Days of sales outstanding (DSO) days 86.84 78.80 69.98 73.98 76.52 75.28 73.07 66.21 70.48 76.73 66.97 68.12 74.79 68.84 64.24 72.76 72.27 66.64 73.22 73.54
Number of days of payables days 57.66 50.04 50.01 48.38 54.70 49.13 52.13 49.54 54.70 51.71 54.77 51.20 46.48 41.54 38.93 35.75 40.24 43.60 43.30 43.79

ESC0 Technologies Inc. has shown fluctuations in its activity ratios over the past few quarters:

1. Days of Inventory on Hand (DOH): The company's inventory turnover has varied, with the number of days of inventory on hand ranging from a low of 107.75 days to a high of 133.59 days. In recent quarters, there has been a trend towards higher days of inventory on hand, indicating that ESCO may be carrying excess inventory or facing challenges in managing its inventory efficiently.

2. Days of Sales Outstanding (DSO): ESCO's collection period has also been inconsistent, with DSO ranging from 64.24 days to 86.84 days. The company experienced a spike in the collection period in the most recent quarter, indicating delays in receiving payment for sales made. This could potentially impact cash flow and liquidity.

3. Number of Days of Payables: ESCO's payment period to suppliers has fluctuated between 35.75 days and 57.66 days. There has been a general trend towards a longer payment period, which could suggest that the company is taking longer to settle its payables. While lengthening payables can positively impact cash flow, it may strain relationships with suppliers if not managed effectively.

Overall, ESCO Technologies Inc. should focus on optimizing its inventory management, improving collections efficiency, and carefully managing its payables to enhance working capital management and overall financial 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 5.93 6.00 6.04 6.02 6.09 6.00 5.86 5.65 5.47 5.15 4.88 4.68 4.63 5.05 4.94 5.09 5.20 5.35 5.62 5.88
Total asset turnover 0.55 0.55 0.55 0.54 0.56 0.55 0.54 0.54 0.52 0.49 0.47 0.45 0.45 0.51 0.52 0.52 0.53 0.52 0.54 0.56

ESCO Technologies Inc has shown consistent performance in terms of its fixed asset turnover ratio over the past five years. The company's fixed asset turnover ratio has generally trended upwards, indicating an improvement in its efficiency in generating sales revenue from its investments in fixed assets.

On the other hand, the total asset turnover ratio has remained relatively stable over the same period, indicating a consistent level of efficiency in generating sales revenue from its total assets. Although the total asset turnover ratio is lower compared to the fixed asset turnover ratio, it suggests that ESCO Technologies Inc has been managing its total assets efficiently to generate revenues.

Overall, the company's long-term activity ratios reflect a positive trend in asset utilization and efficiency, which is crucial for sustainable growth and profitability in the long run.