Huntington Ingalls Industries Inc (HII)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.94 | — | — | — | 5.84 | — | — | — | 5.43 | — | — | 8.48 | 6.11 | 7.83 | 7.42 | 7.82 | 7.01 | 7.51 | 7.64 | 7.75 |
| Receivables turnover | 27.73 | 19.22 | 13.04 | 13.50 | 17.79 | 12.63 | 11.24 | 12.41 | 13.25 | 11.70 | 12.67 | 11.67 | 14.83 | 14.40 | 16.40 | 17.36 | 16.48 | 13.76 | 14.92 | 17.27 |
| Payables turnover | 1.72 | 1.92 | 1.70 | 1.80 | 1.96 | 1.90 | 1.94 | 1.97 | 1.55 | 1.90 | 1.95 | 1.87 | 1.63 | 1.88 | 2.70 | 2.40 | 2.09 | 2.22 | 2.15 | 1.69 |
| Working capital turnover | 48.67 | — | — | — | — | — | — | — | — | — | 27.49 | 26.91 | 26.24 | 27.44 | 49.38 | 61.28 | 42.94 | 13.91 | 14.27 | 159.33 |
Based on the provided data, let's analyze the activity ratios of Huntington Ingalls Industries Inc:
1. Inventory Turnover:
The inventory turnover ratio measures how effectively the company manages its inventory. Huntington Ingalls Industries Inc's inventory turnover has fluctuated over the years, ranging from a high of 8.48 in March 2022 to a low of 4.94 in December 2024. Generally, a higher turnover indicates efficient inventory management and a lower level of obsolete inventory.
2. Receivables Turnover:
The receivables turnover ratio reflects how efficiently the company collects its accounts receivable. Huntington Ingalls Industries Inc's receivables turnover has varied significantly, with the highest turnover recorded in December 2024 at 27.73. A higher turnover implies that the company is collecting receivables quickly, which is a positive sign of cash flow management.
3. Payables Turnover:
The payables turnover ratio indicates how well the company manages its trade payables. Huntington Ingalls Industries Inc's payables turnover has shown a decreasing trend over time, declining from 2.70 in June 2021 to 1.72 in December 2024. A lower turnover may suggest a longer time to pay suppliers, impacting liquidity and relationships with vendors.
4. Working Capital Turnover:
The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales. Huntington Ingalls Industries Inc's working capital turnover has also fluctuated, with the highest turnover recorded in March 2020 at 159.33. A higher turnover indicates effective utilization of working capital in generating revenue.
In conclusion, analyzing these activity ratios provides insights into Huntington Ingalls Industries Inc's operational efficiency, inventory management, receivables collection, payables management, and working capital utilization over the years.
Average number of days
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 73.92 | — | — | — | 62.51 | — | — | — | 67.20 | — | — | 43.07 | 59.72 | 46.63 | 49.21 | 46.68 | 52.09 | 48.59 | 47.76 | 47.08 |
| Days of sales outstanding (DSO) | days | 13.16 | 18.99 | 27.99 | 27.03 | 20.52 | 28.90 | 32.48 | 29.41 | 27.56 | 31.20 | 28.80 | 31.29 | 24.60 | 25.35 | 22.25 | 21.02 | 22.15 | 26.52 | 24.47 | 21.14 |
| Number of days of payables | days | 212.53 | 190.56 | 214.40 | 203.04 | 186.20 | 192.58 | 188.49 | 185.44 | 235.74 | 192.31 | 187.65 | 195.24 | 223.67 | 194.16 | 135.23 | 151.89 | 174.90 | 164.14 | 169.69 | 215.70 |
Based on the provided data, we can analyze the activity ratios of Huntington Ingalls Industries Inc as follows:
1. Days of Inventory on Hand (DOH):
- The company's average DOH has been relatively stable over the past few years, fluctuating between 43 to 73 days.
- A decreasing trend in DOH indicates that Huntington Ingalls is managing its inventory more efficiently. A lower DOH suggests that the company is selling its inventory faster.
- However, there was a significant increase in DOH in December 2022 and December 2024, which may indicate potential issues with inventory management during those periods.
2. Days of Sales Outstanding (DSO):
- The DSO for Huntington Ingalls has varied between 13 to 32 days from March 2020 to December 2024.
- A lower DSO suggests that the company is collecting its accounts receivable more quickly, which is a positive sign of efficient credit management.
- The DSO decreased notably in December 2024 compared to the previous periods, indicating a more efficient collection of sales proceeds.
3. Number of Days of Payables:
- The number of days of payables for Huntington Ingalls ranged from 135 to 235 days during the observation period.
- A higher number of days of payables may indicate that the company is taking longer to pay its suppliers, which can be a strategy to manage cash flow better.
- The number of days of payables increased in December 2021 and December 2022, suggesting potential changes in the company's payment terms with suppliers during those periods.
Overall, analyzing these activity ratios provides insights into Huntington Ingalls Industries Inc's efficiency in managing its inventory, collecting receivables, and paying its suppliers.
Long-term
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 3.34 | 3.46 | 3.52 | 3.51 | 3.48 | 3.46 | 3.41 | 3.39 | 3.34 | 3.36 | 3.31 | 3.17 | 3.07 | 3.16 | 3.19 | 3.14 | 3.14 | 3.10 | 3.10 | 3.19 |
| Total asset turnover | 0.95 | 1.06 | 1.04 | 1.04 | 1.02 | 1.04 | 1.00 | 0.99 | 0.98 | 0.99 | 0.97 | 0.93 | 0.90 | 0.92 | 1.18 | 1.14 | 1.15 | 1.07 | 1.08 | 1.19 |
Huntington Ingalls Industries Inc's fixed asset turnover ratio has been relatively stable over the analyzed period, ranging from 3.07 to 3.52. This indicates that the company generates around $3.07 to $3.52 in revenue for every dollar invested in fixed assets. The upward trend observed from March 31, 2023, to December 31, 2024, suggests improved efficiency in utilizing fixed assets to generate sales.
On the other hand, the total asset turnover ratio has shown more volatility, fluctuating between 0.90 and 1.06. This metric reveals how efficiently the company generates revenue from its total assets. Despite some fluctuations, there is a gradual increase in the total asset turnover ratio from June 30, 2022, to December 31, 2024, indicating improved productivity in utilizing all assets to generate sales.
Overall, the stability in the fixed asset turnover ratio and the increasing trend in the total asset turnover ratio suggest positive operational efficiency and effective utilization of assets by Huntington Ingalls Industries Inc over the analyzed period.