Hillenbrand Inc (HI)

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 4.05 3.61 3.43 3.21 3.16 3.13 2.88 2.73 3.20 2.50 2.80 3.27 3.67 4.50 4.62 4.52 4.42 3.70 3.47 2.98
Receivables turnover 4.88 4.57 4.48 4.60 4.29 4.45 3.99 4.03 4.41 3.67 4.08 4.74 5.03 6.71 6.14 5.67 6.03 4.98 4.47 3.57
Payables turnover 4.78 4.66 4.47 4.62 4.14 4.42 4.11 4.06 4.18 2.88 3.14 3.71 4.18 5.61 6.05 6.41 6.27 5.93 4.93 3.77
Working capital turnover 9.92 7.34 7.29 8.49 8.93 6.60 7.37 4.91 7.12 5.27 4.49 5.40 5.61 6.70 6.84 5.51 4.86 4.86 3.84 5.74

Hillenbrand Inc's activity ratios provide insights into how efficiently the company is managing its assets and liabilities.

1. Inventory turnover: This ratio measures how many times the company's inventory is sold and replaced over a period. Hillenbrand's inventory turnover has been gradually increasing over the past few quarters, indicating that the company is managing its inventory more efficiently. A higher inventory turnover suggests that the company is selling products quickly, which can lead to lower carrying costs and better cash flow.

2. Receivables turnover: This ratio reflects how quickly the company collects payments from its customers. The increasing trend in Hillenbrand's receivables turnover suggests that the company is improving its collection process and converting credit sales into cash more effectively. A higher receivables turnover indicates better liquidity and a lower risk of bad debts.

3. Payables turnover: This ratio indicates how quickly the company pays its suppliers for goods and services. Hillenbrand's payables turnover has been fairly consistent, showing that the company is managing its payables efficiently. A higher payables turnover can indicate strong supplier relationships and effective working capital management.

4. Working capital turnover: This ratio measures how efficiently the company is utilizing its working capital to generate sales. Hillenbrand's working capital turnover has shown some fluctuations but generally remains at a healthy level. A higher working capital turnover ratio implies that the company is effectively using its current assets to support revenue generation, indicating good operational efficiency.

Overall, the analysis of Hillenbrand Inc's activity ratios suggests that the company is effectively managing its inventory, receivables, payables, and working capital to drive operational performance and financial health.

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 90.16 101.01 106.31 113.78 115.58 116.70 126.55 133.94 114.24 146.02 130.54 111.58 99.55 81.20 79.03 80.71 82.57 98.67 105.28 122.61
Days of sales outstanding (DSO) days 74.86 79.91 81.48 79.32 85.10 81.93 91.46 90.59 82.86 99.39 89.38 77.05 72.53 54.39 59.48 64.35 60.56 73.25 81.57 102.26
Number of days of payables days 76.35 78.25 81.69 79.05 88.06 82.60 88.84 89.95 87.28 126.57 116.21 98.37 87.39 65.07 60.31 56.97 58.19 61.60 74.09 96.79

Days of Inventory on Hand (DOH) for Hillenbrand Inc have been fluctuating over the past few quarters, ranging from a high of 146.02 days to a low of 79.03 days. This indicates varying efficiency in managing inventory levels over time.

Days of Sales Outstanding (DSO) have also shown variability, with the highest DSO at 102.26 days and the lowest at 54.39 days. This reflects inconsistencies in collecting accounts receivable promptly.

The number of days of payables has ranged from 96.79 days to 56.97 days, signaling changes in the company's payment terms and relationships with suppliers.

Overall, Hillenbrand Inc should focus on improving its inventory turnover, reducing DSO, and effectively managing its payables to enhance operational efficiency and cash flow management.

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 10.05 9.46 9.22 8.80 8.81 9.00 8.57 8.43 9.98 6.56 6.96 7.35 7.60 9.52 9.16 8.59 8.01 6.96 6.16 4.93
Total asset turnover 0.61 0.59 0.55 0.53 0.51 0.56 0.52 0.49 0.60 0.47 0.48 0.53 0.56 0.69 0.69 0.66 0.63 0.57 0.51 0.44

Hillenbrand Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into how efficiently the company utilizes its assets to generate sales.

The fixed asset turnover ratio indicates that for each dollar invested in fixed assets, Hillenbrand Inc generated sales. It shows an increasing trend from 4.93 in December 2019 to 10.05 in September 2024, with fluctuations along the way. This improvement suggests that the company has been able to generate more revenue from its fixed assets over time.

On the other hand, the total asset turnover ratio measures how effectively the company utilizes all its assets to generate sales. Hillenbrand Inc's total asset turnover ratio ranged from 0.44 in December 2019 to 0.69 in September 2021 and again in March 2021 and June 2021. It indicates an increasing trend over the years, showing that the company has become more efficient in generating sales from its total assets.

Overall, both ratios demonstrate an upward trend over the years, indicating that Hillenbrand Inc has been improving its efficiency in generating sales from its assets. An increasing asset turnover ratio is generally a positive sign, suggesting that the company is effectively managing its assets to drive revenue growth.