Fortune Brands Innovations Inc. (FBIN)
Activity ratios
Short-term
Turnover ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.08 | 3.92 | 3.45 | 3.25 | 2.73 | 1.90 | 2.00 | 2.16 | 3.19 | 2.81 | 3.33 | 3.81 | 4.53 | 5.16 | 5.02 | 5.34 | 5.17 | 4.87 | 4.91 | 4.85 |
| Receivables turnover | 8.66 | 7.94 | 7.29 | — | 9.05 | 5.14 | 4.89 | 4.80 | 5.42 | 5.69 | 6.66 | 6.97 | 8.29 | 7.71 | 8.68 | 8.61 | 9.23 | 8.93 | 7.98 | 8.55 |
| Payables turnover | 7.06 | 6.39 | 6.73 | 7.14 | 6.62 | 4.24 | 3.83 | 3.95 | 5.06 | 4.31 | 4.99 | 6.09 | 6.33 | 7.01 | 7.92 | 8.80 | 8.07 | 8.46 | 7.65 | 8.10 |
| Working capital turnover | 5.47 | 4.80 | 5.64 | 5.21 | 5.16 | 5.01 | 3.01 | 3.03 | 6.21 | 4.38 | 4.75 | 5.02 | 7.05 | 5.88 | 5.68 | 8.74 | 11.79 | 10.78 | 25.42 | 9.12 |
The inventory turnover ratio for Fortune Brands Innovations Inc. has been showing a consistent improvement over the past few quarters, indicating that the company is efficiently managing its inventory levels. This suggests that the company is selling its inventory more frequently and turning it into sales at a faster rate.
On the other hand, the receivables turnover ratio has been fluctuating but generally remains at healthy levels. This indicates that the company is efficiently collecting payments from its customers, although there may be some variability in the collection process.
The payables turnover ratio has been relatively stable and at times improving, suggesting that the company is effectively managing its payables by paying its suppliers in a timely manner.
The working capital turnover ratio has displayed significant fluctuations, indicating changes in how efficiently the company is utilizing its working capital to generate sales revenue. The higher the turnover ratio, the more efficiently the company is using its working capital to support its operations and generate revenue.
Overall, the activity ratios for Fortune Brands Innovations Inc. suggest that the company is effectively managing its inventory levels, collecting payments from customers, paying suppliers on time, and efficiently utilizing its working capital to drive sales growth.
Average number of days
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 89.38 | 93.16 | 105.72 | 112.29 | 133.61 | 192.22 | 182.42 | 169.28 | 114.30 | 129.89 | 109.69 | 95.82 | 80.63 | 70.68 | 72.71 | 68.39 | 70.66 | 75.01 | 74.30 | 75.24 |
| Days of sales outstanding (DSO) | days | 42.15 | 45.94 | 50.04 | — | 40.33 | 71.05 | 74.63 | 76.00 | 67.33 | 64.18 | 54.81 | 52.40 | 44.04 | 47.33 | 42.06 | 42.39 | 39.56 | 40.88 | 45.73 | 42.69 |
| Number of days of payables | days | 51.69 | 57.14 | 54.22 | 51.10 | 55.15 | 86.06 | 95.36 | 92.34 | 72.09 | 84.70 | 73.09 | 59.91 | 57.69 | 52.09 | 46.06 | 41.47 | 45.23 | 43.15 | 47.73 | 45.07 |
Fortune Brands Innovations Inc.'s activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying suppliers.
1. Days of Inventory on Hand (DOH):
- The company has shown a fluctuating trend in managing its inventory levels over the past few quarters.
- In recent periods, the number of days of inventory held on hand has been relatively high, indicating potential challenges in inventory turnover efficiency.
- Immediate attention may be required to optimize inventory management and reduce holding costs.
2. Days of Sales Outstanding (DSO):
- The DSO metric reveals the average number of days it takes for the company to collect revenue from credit sales.
- Despite some variability, the trend in DSO has generally improved, suggesting efficient accounts receivable management.
- However, there was missing data for March 31, 2023, potentially impacting the full analysis of receivables collection efficiency.
3. Number of Days of Payables:
- The number of days of payables indicates how long the company takes to pay its suppliers.
- The trend shows fluctuations, but overall, the company has been taking a relatively consistent time to settle its payables.
- Maintaining a balance between timely payments to suppliers and managing cash flow effectively remains essential.
In summary, while the company has shown improvements in managing receivables and payables, there may be areas for enhancement in inventory turnover efficiency to optimize working capital management effectively. Monitoring these activity ratios can provide valuable insights into Fortune Brands Innovations Inc.'s operational efficiency and financial health.
Long-term
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.74 | 4.95 | 5.23 | 5.74 | 6.03 | 4.38 | 4.51 | 4.56 | 7.16 | 5.61 | 6.13 | 6.38 | 6.64 | 7.45 | 7.19 | 7.23 | 6.99 | 7.14 | 7.00 | 6.89 |
| Total asset turnover | 0.70 | 0.69 | 0.66 | 0.77 | 0.77 | 0.57 | 0.59 | 0.59 | 0.60 | 0.67 | 0.73 | 0.77 | 0.83 | 0.91 | 0.90 | 0.93 | 0.92 | 0.91 | 0.89 | 0.88 |
Fortune Brands Innovations Inc.'s fixed asset turnover ratio has exhibited fluctuation over the past five years, ranging from a low of 4.38 to a high of 7.45. This ratio measures the efficiency of the company's utilization of fixed assets to generate revenue, with higher ratios indicating better efficiency.
On the other hand, the total asset turnover ratio has also varied in the same period, with values between 0.57 and 0.93. This ratio reflects the efficiency of the company in generating sales from its total assets. A higher total asset turnover ratio generally indicates that the company is utilizing its assets to generate revenue effectively.
Comparing the fixed asset turnover and total asset turnover ratios, it is evident that the company has been efficient in utilizing its fixed assets to generate revenue, as the fixed asset turnover ratios have generally been higher and more stable compared to the total asset turnover ratios. This could indicate that the company has a significant portion of its assets in fixed assets, which are being used effectively to generate sales. However, the total asset turnover ratios suggest that there may be room for improvement in the overall efficiency of asset utilization to drive sales.