Chart Industries Inc (GTLS)
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 | 5.27 | 4.22 | 3.40 | 2.85 | 4.24 | 4.09 | 3.89 | 3.80 | 3.92 | 3.48 | 3.60 | 3.94 | 4.61 | 4.98 | 5.09 | 5.40 | 6.00 | 5.07 | 4.83 | 4.75 |
| Receivables turnover | 4.00 | 3.42 | 2.78 | 2.29 | 3.11 | 5.57 | 5.22 | 5.42 | 5.53 | 5.23 | 5.37 | 6.25 | 5.93 | 7.46 | 7.07 | 6.70 | 6.32 | 5.47 | 5.60 | 7.19 |
| Payables turnover | 3.75 | 3.58 | 3.06 | 2.56 | 7.19 | 7.10 | 6.61 | 7.20 | 7.16 | 6.59 | 6.55 | 7.26 | 8.17 | 10.98 | 11.44 | 10.57 | 10.43 | 9.86 | 9.70 | 9.21 |
| Working capital turnover | 8.71 | 5.62 | 3.01 | 3.97 | 0.61 | 8.83 | 6.15 | 7.25 | 8.19 | 8.87 | 5.92 | 21.78 | 17.45 | 3.25 | 4.02 | 4.46 | 4.34 | 3.97 | 3.22 | 22.37 |
Chart Industries Inc's activity ratios provide insights into how efficiently the company manages its assets and working capital.
- Inventory turnover has shown variability over the periods, ranging from 2.20 to 4.01. A higher turnover indicates that the company is selling its inventory quickly, suggesting efficient inventory management.
- Receivables turnover has also fluctuated, ranging between 1.58 and 3.92. A lower turnover may indicate issues with collecting receivables promptly, while a higher turnover suggests effective credit control and timely collection.
- Payables turnover has decreased over the periods from 5.72 to 1.97, indicating that the company is taking longer to pay its suppliers. This could be due to changes in payment terms, financial constraints, or other factors affecting the company's working capital management.
- Working capital turnover has been inconsistent, ranging from 0.62 to 9.63. A higher turnover ratio signifies that the company is generating more revenue per dollar of working capital, indicating efficient utilization of resources.
In summary, while the inventory and receivables turnover ratios indicate varying degrees of efficiency in managing inventory and collecting receivables, the decreasing trend in payables turnover and the fluctuating working capital turnover ratio suggest potential challenges in managing working capital effectively. These ratios should be analyzed as part of a comprehensive assessment of the company's operational efficiency and financial health.
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 | 69.24 | 86.58 | 107.39 | 128.12 | 86.05 | 89.14 | 93.87 | 96.02 | 93.19 | 104.98 | 101.38 | 92.67 | 79.25 | 73.32 | 71.72 | 67.59 | 60.81 | 72.01 | 75.51 | 76.82 |
| Days of sales outstanding (DSO) | days | 91.33 | 106.58 | 131.23 | 159.43 | 117.42 | 65.54 | 69.87 | 67.29 | 65.96 | 69.72 | 67.98 | 58.39 | 61.57 | 48.93 | 51.62 | 54.47 | 57.74 | 66.71 | 65.12 | 50.74 |
| Number of days of payables | days | 97.44 | 101.88 | 119.10 | 142.66 | 50.76 | 51.39 | 55.19 | 50.70 | 50.99 | 55.37 | 55.71 | 50.26 | 44.70 | 33.24 | 31.91 | 34.54 | 34.98 | 37.00 | 37.62 | 39.64 |
Chart Industries Inc's activity ratios show fluctuations in operational efficiency over the past eight quarters. The Days of Inventory on Hand (DOH) ratio has ranged from 90.98 days to 166.28 days, indicating variability in the company's ability to manage its inventory levels efficiently. Generally, higher DOH values suggest slower inventory turnover, while lower values imply a more efficient use of inventory.
The Days of Sales Outstanding (DSO) metric has varied between 93.21 days and 231.59 days, reflecting the average number of days it takes for the company to collect receivables. Higher DSO values may point to challenges in collecting payments from customers promptly, while lower values suggest a quicker cash conversion cycle.
Regarding the Number of Days of Payables, the company's performance has fluctuated between 63.50 days and 185.15 days, representing the average number of days it takes for Chart Industries Inc to pay its suppliers. Higher values indicate potential delays in settling payables, while lower values may suggest more efficient management of trade credit terms.
Overall, monitoring and improving these activity ratios can help Chart Industries Inc enhance operational efficiency, working capital management, and ultimately, its 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 | 3.69 | 3.18 | 2.77 | 2.39 | 3.71 | 3.79 | 3.58 | 3.33 | 3.14 | 3.01 | 2.85 | 2.85 | 2.87 | 3.08 | 3.28 | 3.27 | 3.22 | 3.08 | 3.01 | 3.84 |
| Total asset turnover | 0.33 | 0.28 | 0.23 | 0.18 | 0.27 | 0.50 | 0.46 | 0.44 | 0.43 | 0.42 | 0.42 | 0.44 | 0.46 | 0.50 | 0.53 | 0.54 | 0.52 | 0.49 | 0.58 | 0.77 |
The analysis of Chart Industries Inc's long-term activity ratios reveals the company's efficiency in utilizing its fixed and total assets to generate sales revenue.
Fixed asset turnover reflects how effectively the company is using its fixed assets to generate revenue. The trend for the fixed asset turnover ratio shows an improvement over the quarters, indicating that the company is generating more revenue from its fixed assets. In Q4 2023, the fixed asset turnover ratio reached 4.00, which means that for every dollar invested in fixed assets, the company generated $4.00 in revenue. This trend suggests that the company's fixed assets are being utilized efficiently to drive sales.
Total asset turnover, on the other hand, measures the efficiency of the company in generating sales revenue from all of its assets. The total asset turnover ratio for Chart Industries Inc has fluctuated over the quarters, with a significant decline in Q2 and Q1 2023. This decline may indicate that the company is not efficiently utilizing all of its assets to generate revenue during those periods. However, the ratio improved in Q4 2023 compared to the previous quarters, indicating a positive trend in utilizing total assets to drive sales.
Overall, the analysis of the long-term activity ratios suggests that Chart Industries Inc has been successful in improving its efficiency in utilizing fixed assets to generate revenue, while there have been fluctuations in the efficiency of utilizing total assets over the quarters. The company should continue to focus on optimizing the utilization of all its assets to drive sales growth and improve overall performance in the long term.