Flowserve Corporation (FLS)

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	4.59	4.26	4.08	4.04	4.29	4.30	4.42	4.59	4.88	4.82	4.92	5.15	5.28	5.02	5.31	5.31	5.36	5.07	5.12	5.18
Receivables turnover	4.76	4.77	4.42	4.13	4.04	4.49	4.68	4.74	4.54	4.97	4.92	4.95	4.84	5.00	5.04	5.31	4.93	4.87	4.70	4.83
Payables turnover	7.37	8.11	7.56	7.29	7.23	8.09	7.64	7.92	8.07	9.06	8.62	8.96	8.01	8.37	8.47	8.53	7.92	8.75	8.67	8.85
Working capital turnover	3.37	3.11	3.05	3.06	2.96	3.05	2.90	2.82	2.76	2.69	2.62	2.65	2.08	2.19	2.86	2.95	2.83	2.85	2.81	2.87

Flowserve Corp.'s activity ratios provide insights into the efficiency of the company's operations regarding inventory management, accounts receivable collection, payables management, and overall working capital turnover.

From the data provided, it can be observed that the inventory turnover ratio has been relatively stable over the quarters, ranging between 3.05 and 3.46. This indicates that Flowserve is efficiently managing its inventory levels, turning over its inventory approximately 3-4 times a year.

The receivables turnover ratio shows a consistent trend, varying between 4.17 and 4.90. This signifies that Flowserve is collecting its receivables in a timely manner, with an average collection period of around 90 days.

In terms of payables turnover, the company's ratios have fluctuated between 5.51 and 6.15. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

The working capital turnover ratio measures how efficiently the company is using its working capital to generate sales. Flowserve's working capital turnover ratios have been somewhat stable, ranging between 2.85 and 3.41. This indicates that the company is effectively using its working capital to support its operations and generate revenue.

Overall, the activity ratios suggest that Flowserve Corp. is managing its operational assets and liabilities effectively, maintaining a balance between inventory, accounts receivable, and payables while efficiently utilizing its working capital to support its business activities.

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	79.56	85.70	89.55	90.33	85.03	84.90	82.53	79.46	74.80	75.77	74.21	70.93	69.11	72.66	68.76	68.74	68.05	71.96	71.31	70.46
Days of sales outstanding (DSO)	days	76.60	76.52	82.52	88.40	90.46	81.28	77.91	76.99	80.38	73.45	74.15	73.69	75.38	73.05	72.44	68.74	73.98	74.97	77.67	75.60
Number of days of payables	days	49.53	45.03	48.25	50.04	50.47	45.13	47.77	46.06	45.22	40.27	42.32	40.76	45.59	43.61	43.09	42.79	46.09	41.70	42.11	41.24

Flowserve Corp.'s activity ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

Days of Inventory on Hand (DOH) have shown a slight increase from Q1 2023 to Q4 2023, indicating that inventory turnover has slowed down. This could potentially tie up more of the company's funds in inventory, which may lead to higher storage costs and obsolescence risks.

Days of Sales Outstanding (DSO) have fluctuated throughout the year, but generally, there seems to be a trend of longer collection periods from customers. A high DSO may indicate difficulty in collecting receivables promptly, possibly impacting cash flow and liquidity.

The Number of Days of Payables has also varied over the periods, with an overall increase towards the end of the year. This suggests that the company is taking longer to pay its suppliers. While extending payables can improve cash flow in the short term, it may strain relationships with suppliers in the long run.

In summary, while Flowserve Corp. should monitor its activity ratios to ensure efficient use of resources and maintain good relationships with suppliers and customers, there may be areas where the company can improve to enhance overall financial performance.

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	8.76	8.42	7.85	7.52	7.13	7.31	7.07	6.83	6.72	6.88	6.83	6.76	6.59	6.81	6.99	7.06	6.96	6.67	6.42	6.42
Total asset turnover	0.84	0.83	0.80	0.77	0.75	0.77	0.75	0.74	0.73	0.63	0.75	0.75	0.69	0.73	0.80	0.82	0.79	0.81	0.79	0.78

Flowserve Corp.'s fixed asset turnover has been relatively stable and consistently high over the past eight quarters, ranging from 6.92 to 8.54. This indicates that the company generates significant sales revenue in relation to its investment in fixed assets, reflecting efficient utilization of its long-term assets to generate sales.

On the other hand, the total asset turnover ratio has also shown stability, albeit at a lower level compared to the fixed asset turnover ratio. Flowserve Corp.'s total asset turnover ranges from 0.75 to 0.85, indicating that the company generates sales revenue in relation to its total assets, including both fixed and current assets.

Overall, both ratios suggest that Flowserve Corp. has been efficient in generating sales revenue based on its investment in assets, with the fixed asset turnover highlighting the company's efficiency in utilizing its fixed assets to drive sales.