FMC Corporation (FMC)

Short-term

Turnover ratios

Based on the data provided for FMC Corporation, let's analyze the activity ratios over the reporting periods:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. A decreasing trend is observed in FMC Corporation's inventory turnover ratio from 2.42 in March 2020 to 2.16 in December 2024, with fluctuations over the years. A low turnover ratio may indicate overstocking, obsolete inventory, or declining sales.

2. Receivables Turnover: Unfortunately, there is no data available for the receivables turnover ratio. This ratio assesses how effectively a company collects its outstanding accounts receivable during a specific period.

3. Payables Turnover: Similarly, there is no data provided for the payables turnover ratio. This ratio gauges how quickly a company pays its suppliers for goods or services purchased on credit.

4. Working Capital Turnover: The working capital turnover ratio demonstrates how efficiently a company utilizes its working capital to generate revenue. FMC Corporation's working capital turnover ratio has varied significantly, ranging from 2.32 in March 2020 to 4.28 in March 2023. A higher turnover ratio typically signifies better utilization of working capital.

In conclusion, FMC Corporation's activity ratios indicate fluctuating efficiency in managing inventory and working capital over the reporting periods. However, the absence of data for receivables and payables turnover limits a comprehensive assessment of the company's overall activity performance.

---

Average number of days

Activity ratios provide insight into how efficiently a company manages its resources to generate sales. Let's analyze the activity ratios of FMC Corporation based on the provided data:

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, inventory is held before being sold.
- FMC Corporation's DOH varied over the years, ranging from a low of 151.09 days to a high of 253.14 days.
- Generally, a lower DOH is preferred as it indicates faster inventory turnover and efficient management of inventory levels. FMC's DOH trend shows fluctuations, possibly due to changes in demand or production efficiencies.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for the company to collect payment after a sale is made.
- The data provided does not include DSO figures for FMC Corporation, indicating that information on the collection period for sales is not available.

3. Number of Days of Payables:
- This ratio shows how long it takes the company to pay its suppliers.
- The data does not include information on FMC Corporation's Number of Days of Payables, preventing an analysis of the company's payment practices and relationships with suppliers.

In conclusion, while we could analyze FMC Corporation's inventory management efficiency through the DOH ratio, the lack of data on DSO and payables turnover limits a comprehensive assessment of the company's overall activity ratios. Further information on sales collection periods and payment terms with suppliers would be necessary to provide a more complete analysis of FMC's efficiency in managing working capital.

---

Long-term

FMC Corporation's fixed asset turnover ratio has shown fluctuations over the past few years, ranging from a high of 7.08 in September 2022 to a low of 4.99 in September 2023. This ratio indicates the company's ability to generate sales from its fixed assets, with a higher ratio generally being favorable as it suggests efficient utilization of these assets.

On the other hand, the total asset turnover ratio, which reflects how well the company is utilizing all its assets to generate revenue, has also varied. The ratio has ranged from 0.34 in June 2024 to 0.52 in December 2022. A declining trend in this ratio may indicate inefficiencies in asset utilization or a slowdown in sales relative to the size of the asset base.

Overall, the analysis of FMC Corporation's long-term activity ratios suggests that while the company has been able to generate consistent sales relative to its fixed assets, its overall asset turnover has shown more variability, potentially signaling challenges in optimizing the use of all its assets to drive revenue growth.