Chart Industries Inc (GTLS)

Short-term

Turnover ratios

Based on the provided data for Chart Industries Inc., let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory.
- The trend shows a slight fluctuation from 3.40 in 2020 to 5.65 in 2024.
- A higher inventory turnover ratio indicates that the company is selling its inventory at a faster rate, which can lead to lower carrying costs and potentially higher profits.

2. Receivables Turnover:
- Unfortunately, the data does not provide information on receivables turnover for the company.
- Receivables turnover ratio helps in evaluating how efficiently a company collects its outstanding receivables.

3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not available for analysis.
- Payables turnover ratio assesses how quickly a company pays off its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company uses its working capital to generate sales.
- The ratio decreased significantly from 17.26 in 2020 to 0.62 in 2022, and then increased to 6.16 in 2024.
- A higher working capital turnover ratio suggests that the company is effectively utilizing its resources to generate revenue.

In conclusion, while the inventory turnover ratio showed improvement over the years, the lack of data for receivables turnover and payables turnover limits a holistic assessment of Chart Industries Inc.'s activity ratios. The fluctuation in the working capital turnover ratio indicates varying efficiency in utilizing working capital for generating sales during the period under review.

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Average number of days

Based on the provided data for Chart Industries Inc, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- December 31, 2020: 107.30 days
- December 31, 2021: 118.12 days
- December 31, 2022: 108.41 days
- December 31, 2023: 90.98 days
- December 31, 2024: 64.60 days

The Days of Inventory on Hand indicate the average number of days the company holds inventory before it is sold. A decreasing trend in DOH is generally positive as it shows the company is managing its inventory efficiently, turning inventory into sales more quickly. Chart Industries Inc has shown a favorable improvement in this ratio from 2020 to 2024, with a significant decrease in days, indicating better inventory management.

2. Days of Sales Outstanding (DSO):
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided

Unfortunately, data for Days of Sales Outstanding is not available for analysis. DSO measures how quickly a company collects cash from its credit sales. Without this data, it is challenging to assess the efficiency of Chart Industries Inc in collecting its accounts receivable.

3. Number of Days of Payables:
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided

Similarly, data for the Number of Days of Payables is not provided, which typically represents the average number of days a company takes to pay its suppliers. Without this information, it is difficult to evaluate how effectively Chart Industries Inc manages its payables.

In conclusion, based on the available data, Chart Industries Inc has shown a positive trend in managing its inventory efficiently over the years. However, without information on DSO and payables, a comprehensive analysis of the company's overall activity ratios cannot be fully completed.

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Long-term

Long-term activity ratios provide insight into a company's efficiency in managing its assets over an extended period.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate revenue. A higher ratio indicates more efficient utilization of fixed assets.
- Chart Industries Inc's fixed asset turnover has shown a positive trend from 2.84 in 2020 to 3.17 in 2021 and further to 3.75 in 2022. This indicates an improvement in the company's efficiency in generating sales from its fixed assets during these years.
- However, there is missing data for 2023 and 2024, which limits the ability to assess the continuous trend of fixed asset turnover.

2. Total Asset Turnover:
- The total asset turnover ratio measures a company's ability to generate sales from its total assets. A higher ratio signifies better asset utilization to generate revenue.
- Chart Industries Inc's total asset turnover declined from 0.46 in 2020 to 0.43 in 2021 and then significantly dropped to 0.27 in 2022. This suggests a decrease in the company's efficiency in utilizing its total assets to generate sales during these years.
- The ratio partially recovered to 0.37 by 2023 before returning to the initial level of 0.46 in 2024, indicating some improvement in asset utilization in the latter years.

In conclusion, while the company demonstrated an improvement in utilizing its fixed assets efficiently over the years, its overall efficiency in generating sales from total assets fluctuated, showing a downward trend initially before a partial recovery in the later years. Proper analysis should consider additional factors impacting asset turnover ratios to provide a more comprehensive assessment of Chart Industries Inc's long-term activity performance.