Huntington Ingalls Industries Inc (HII)

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 5.84 5.23 5.29 5.23 5.43 5.88 5.24 8.48 6.11 7.83 7.42 7.82 7.01 7.51 7.64 7.75 6.35 8.52 8.75 25.06
Receivables turnover 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 19.10 17.76 15.16 22.35
Payables turnover 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 1.74 1.41 1.41 3.97
Working capital turnover — — — — — — 27.49 26.91 26.24 27.44 49.38 61.28 42.94 13.91 14.27 159.33 — 115.81 38.69 —

Huntington Ingalls Industries Inc's activity ratios paint a picture of efficient management of its resources and operations.

1. Inventory Turnover: The company's inventory turnover ratio has been consistently high, indicating that it is effectively managing its inventory levels and quickly converting inventory into sales. This suggests efficient operations and strong demand for its products.

2. Receivables Turnover: The receivables turnover ratio has shown variability over the quarters, but generally indicates that the company is efficient in collecting payments from customers. A higher turnover ratio implies a shorter time between credit sales and receiving cash, which is positive for cash flow management.

3. Payables Turnover: The payables turnover ratio has also been stable, reflecting the company's ability to manage its payables efficiently. A high turnover ratio suggests that the company is paying its suppliers promptly, which can help maintain good relationships with vendors.

4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently the company is using its working capital to generate sales. The significant increase in Q2 and Q1 of 2022 compared to earlier periods suggests that the company was able to generate higher sales with the same amount of working capital, reflecting strong operational efficiency.

Overall, Huntington Ingalls Industries Inc's activity ratios indicate a well-managed operation with effective utilization of its resources to drive sales and manage its working capital efficiently.

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 62.51 69.83 69.00 69.77 67.20 62.08 69.66 43.07 59.72 46.63 49.21 46.68 52.09 48.59 47.76 47.08 57.45 42.84 41.73 14.56
Days of sales outstanding (DSO) days 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 19.11 20.55 24.08 16.33
Number of days of payables days 186.20 192.58 188.49 185.44 235.74 192.31 187.65 195.24 223.67 194.16 135.23 151.89 174.90 164.14 169.69 215.70 209.96 258.73 259.63 91.84

Huntington Ingalls Industries Inc's activity ratios provide insights into the efficiency and effectiveness of managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): The company's inventory turnover has been relatively stable over the quarters, with a decreasing trend from Q4 2022 (7.23 days) to Q4 2023 (6.92 days). This indicates that the company is able to sell its inventory quickly and efficiently.

2. Days of Sales Outstanding (DSO): The DSO has fluctuated over the quarters, with a peak in Q2 2023 at 32.48 days and a decrease in Q4 2023 to 20.52 days. A lower DSO indicates that the company is collecting receivables faster, which is a positive sign of effective credit management.

3. Number of Days of Payables: The days of payables have decreased from Q1 2022 (23.51 days) to Q4 2023 (20.62 days), implying that the company is taking longer to pay its bills. This may indicate strong bargaining power with suppliers, but could also raise concerns about cash management and supplier relationships.

Overall, Huntington Ingalls Industries Inc's activity ratios suggest efficient management of inventory and receivables, but closer monitoring may be needed to ensure optimal management of payables for maintaining healthy working capital levels.

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 3.48 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 3.14 3.22 3.26 3.26
Total asset turnover 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 1.27 1.21 1.18 1.20

The fixed asset turnover ratio of Huntington Ingalls Industries Inc has been on an upward trend over the past few quarters, indicating that the company is generating more revenue per dollar invested in fixed assets. This suggests improved efficiency in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also shown an increasing trend over the quarters, though it fluctuates slightly. This indicates that the company is generating more revenue per dollar of total assets, demonstrating overall efficiency in asset utilization.

Overall, the company has shown positive performance in terms of both fixed asset turnover and total asset turnover ratios, reflecting improved efficiency in utilizing its assets to generate sales. These trends are favorable indicators of the company's operational effectiveness and profitability.