Corning Incorporated (GLW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.25 | 3.25 | 3.33 | 3.64 | 3.13 |
| Receivables turnover | 6.39 | 8.01 | 8.24 | 7.03 | 5.30 |
| Payables turnover | 6.01 | 5.91 | 5.37 | 5.59 | 6.62 |
| Working capital turnover | 4.27 | 4.35 | 6.23 | 4.94 | 2.67 |
Corning Incorporated's inventory turnover has shown a generally consistent trend over the years, with values hovering around 3.25 to 3.64. This indicates that the company is able to sell and replace its inventory between 3 to 3.64 times a year, which is relatively stable.
The receivables turnover for Corning Incorporated has displayed an increasing trend from 5.30 in 2020 to 8.24 in 2022, showing an improvement in the efficiency of collecting receivables. However, the ratio decreased slightly in 2024 to 6.39, which could indicate a change in the company's credit policies or the nature of its customer base.
In terms of payables turnover, Corning Incorporated has experienced fluctuations, indicating variability in its payment practices. The turnover has ranged from 5.37 to 6.62, with some inconsistency over the years.
The working capital turnover has shown significant variability, peaking at 6.23 in 2022 but dropping to 4.27 in 2024. This ratio indicates how effectively the company utilizes its working capital to generate revenue and reflects changes in operational efficiency over the years.
Overall, Corning Incorporated's activity ratios suggest various trends in the management of inventory, receivables, payables, and working capital, highlighting the company's efficiency in managing its resources and operations.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 112.45 | 112.40 | 109.47 | 100.41 | 116.52 |
| Days of sales outstanding (DSO) | days | 57.12 | 45.58 | 44.27 | 51.94 | 68.88 |
| Number of days of payables | days | 60.76 | 61.81 | 68.00 | 65.24 | 55.14 |
Corning Incorporated's activity ratios provide insights into the efficiency of its inventory management, sales collection, and payment to suppliers over the years.
1. Days of Inventory on Hand (DOH):
- The DOH ratio indicates the number of days it takes for the company to sell its average inventory. Corning's DOH has shown a decreasing trend from 116.52 days in 2020 to 100.41 days in 2021, and then increased slightly to 109.47 days in 2022, before stabilizing around 112 days in 2023 and 2024.
- A lower DOH indicates better inventory management efficiency, as the company is selling its inventory faster.
2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect payments from its customers. Corning's DSO has decreased significantly from 68.88 days in 2020 to 51.94 days in 2021, and continued declining to 44.27 days in 2022, before rising to 45.58 days in 2023 and 57.12 days in 2024.
- A lower DSO signifies faster collection of receivables, leading to improved cash flow.
3. Number of Days of Payables:
- This ratio reflects the average number of days it takes for the company to pay its suppliers. Corning's days of payables increased from 55.14 days in 2020 to 65.24 days in 2021, and then further increased to 68.00 days in 2022. However, it decreased to 61.81 days in 2023 and slightly to 60.76 days in 2024.
- A higher number of days of payables indicates that the company is taking longer to settle its payables, which potentially benefits its cash flow position.
Overall, Corning's activity ratios suggest improvements in inventory management and sales collection efficiency over the years, although there have been fluctuations in payables management. These trends can provide useful insights for stakeholders assessing the company's operational effectiveness and financial performance.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.98 | 0.86 | 0.92 | 0.89 | 0.72 |
| Total asset turnover | 0.47 | 0.44 | 0.48 | 0.47 | 0.37 |
The fixed asset turnover ratio for Corning Incorporated has shown an improving trend over the years, increasing from 0.72 in 2020 to 0.98 in 2024. This indicates that the company is generating more sales relative to its investment in fixed assets, which is a positive sign of efficiency in asset utilization.
On the other hand, the total asset turnover ratio has also improved steadily from 0.37 in 2020 to 0.47 in 2024. This suggests that Corning is effectively generating revenue from its total assets, including both fixed and current assets. Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that Corning is efficiently utilizing its assets to generate sales revenue over the years.