Griffon Corporation (GFF)
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 | 5.44 | 5.41 | 5.27 | 5.50 | 5.18 | 5.72 | 5.69 | 4.79 | 4.61 | 3.21 | 3.22 | 4.00 | 4.54 | 3.58 | 3.72 | 3.93 | 5.31 | 5.45 | 4.75 | 4.65 |
| Receivables turnover | 8.21 | 7.89 | 7.26 | 8.61 | 8.31 | 7.42 | 7.12 | 8.04 | 7.63 | 5.66 | 4.54 | 6.54 | 7.49 | 6.91 | 6.24 | 7.59 | 6.75 | 6.30 | 6.59 | 8.06 |
| Payables turnover | 19.39 | 14.88 | 16.34 | 17.10 | 22.50 | 20.87 | 20.51 | 19.31 | 15.85 | 10.73 | 9.74 | 8.72 | 8.25 | 7.05 | 7.00 | 7.35 | 9.85 | 10.27 | 9.60 | 9.87 |
| Working capital turnover | 4.43 | 4.36 | 3.94 | 4.52 | 4.18 | 3.56 | 3.30 | 3.56 | 3.49 | 3.25 | 2.18 | 2.60 | 2.64 | 3.30 | 3.40 | 3.47 | 3.54 | 4.10 | 3.58 | 3.94 |
Griffon Corporation's activity ratios provide insights into its efficiency in managing inventory, receivables, payables, and working capital.
1. Inventory Turnover: The company's inventory turnover has been relatively stable over the periods, ranging from 3.21 to 5.72. This indicates that Griffon Corporation is efficiently managing its inventory levels and quickly converting it into sales. A higher inventory turnover ratio suggests effective inventory management.
2. Receivables Turnover: Griffon Corporation's receivables turnover has shown fluctuations but generally staying within a range of 4.54 to 8.61. This indicates that the company is collecting its accounts receivables at a reasonable pace. A higher turnover ratio indicates that the company is efficient in collecting payments from customers.
3. Payables Turnover: The payables turnover ratio has also shown variability, ranging from 7.00 to 22.50. A higher payables turnover ratio suggests that Griffon Corporation is paying its suppliers quickly, which may indicate good relationships with suppliers or potential discounts for early payment.
4. Working Capital Turnover: The working capital turnover ratio has also shown fluctuations but generally staying within a range of 2.18 to 4.52. This ratio indicates how efficiently Griffon Corporation is using its working capital to generate sales. A higher working capital turnover ratio suggests effective management of working capital.
Overall, based on these activity ratios, Griffon Corporation appears to be effectively managing its inventory, receivables, payables, and working capital to support its operations and generate sales. Keep in mind that these ratios should be considered alongside other financial metrics to obtain a comprehensive view of the company's financial health and performance.
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 | 67.12 | 67.46 | 69.29 | 66.32 | 70.53 | 63.76 | 64.18 | 76.15 | 79.13 | 113.66 | 113.42 | 91.31 | 80.46 | 102.02 | 98.22 | 92.86 | 68.77 | 66.99 | 76.82 | 78.48 |
| Days of sales outstanding (DSO) | days | 44.43 | 46.26 | 50.26 | 42.40 | 43.92 | 49.18 | 51.29 | 45.38 | 47.82 | 64.48 | 80.48 | 55.82 | 48.74 | 52.81 | 58.46 | 48.09 | 54.04 | 57.94 | 55.38 | 45.29 |
| Number of days of payables | days | 18.83 | 24.52 | 22.34 | 21.34 | 16.22 | 17.49 | 17.80 | 18.90 | 23.03 | 34.03 | 37.49 | 41.88 | 44.25 | 51.76 | 52.13 | 49.64 | 37.06 | 35.54 | 38.01 | 36.97 |
Griffon Corporation's activity ratios reflect how efficiently the company manages its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- The average number of days Griffon holds its inventory has been relatively stable over the past five quarters, ranging from 63.76 days to 79.13 days.
- A decreasing trend in DOH could indicate faster inventory turnover and more efficient management of inventory levels.
2. Days of Sales Outstanding (DSO):
- The average number of days it takes for Griffon to collect its accounts receivable has fluctuated over the quarters, with a range of 42.4 days to 80.48 days.
- A decreasing trend in DSO signifies that the company is collecting payments from customers more quickly and effectively.
3. Number of Days of Payables:
- The average number of days Griffon takes to pay its suppliers has also varied, with a range of 16.22 days to 52.13 days.
- A longer payment period could indicate that the company is effectively using trade credit to manage its cash flow, but it could also strain relationships with suppliers if extended too far.
Overall, analyzing these activity ratios helps assess Griffon Corporation's efficiency in managing its working capital components and can provide insights into its operational performance and financial health.
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 | 8.94 | 9.22 | 9.53 | 9.62 | 9.33 | 10.66 | 11.01 | 10.17 | 9.83 | 8.52 | 8.04 | 7.95 | 8.06 | 7.81 | 7.72 | 7.45 | 8.45 | 7.03 | 6.58 | 6.61 |
| Total asset turnover | 1.08 | 1.06 | 1.05 | 1.08 | 1.07 | 1.04 | 1.03 | 1.02 | 0.98 | 0.69 | 0.61 | 0.85 | 0.85 | 0.98 | 0.99 | 0.97 | 0.96 | 0.98 | 0.95 | 0.97 |
Griffon Corporation's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into how efficiently the company is utilizing its assets to generate sales.
The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate revenue. Over the analyzed periods, the ratio has shown a general trend of fluctuating, with values ranging from a low of 6.58 to a high of 11.01. This indicates that the company has been able to efficiently generate sales relative to its investment in fixed assets, although there are fluctuations in performance.
On the other hand, the total asset turnover ratio reflects how well the company is utilizing all its assets to generate sales. The trend for this ratio has been relatively stable but low, with values oscillating around 1. This suggests that Griffon Corporation may not be as efficient in generating sales compared to its total asset base.
Overall, while the company's fixed asset turnover indicates a relatively efficient use of fixed assets to generate revenue, the total asset turnover suggests a lower overall efficiency in utilizing its total asset base for generating sales. Monitoring these ratios over time can help identify trends and opportunities for the company to improve its asset utilization efficiency.