Hexcel Corporation (HXL)
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 | 4.58 | 4.30 | 4.04 | 3.99 | 4.33 | 4.38 | 4.84 | 4.79 | 5.01 | 5.12 | 5.49 | 6.17 | 6.93 | 6.04 | 5.41 | 5.17 | 5.64 | 5.32 | 5.47 | 5.43 |
| Receivables turnover | 7.49 | 7.29 | 6.49 | 6.06 | 6.92 | 7.26 | 6.15 | 6.45 | 8.02 | 6.97 | 7.02 | 7.55 | 11.72 | 11.60 | 10.56 | 8.44 | 10.20 | 8.02 | 7.30 | 6.87 |
| Payables turnover | 9.62 | 15.42 | 12.40 | 11.60 | 8.89 | 11.72 | 12.71 | 11.31 | 10.88 | 13.90 | 14.69 | 15.15 | 21.13 | 25.99 | 23.40 | 12.06 | 11.91 | 11.40 | 10.44 | 10.99 |
| Working capital turnover | 3.21 | 3.37 | 3.13 | 3.11 | 3.81 | 3.67 | 3.43 | 3.13 | 3.49 | 3.12 | 3.09 | 3.55 | 4.17 | 4.34 | 3.21 | 3.08 | 6.07 | 5.46 | 5.21 | 5.15 |
Activity ratios provide insight into how efficiently a company is managing its assets and liabilities. Let's analyze the activity ratios of Hexcel Corp. based on the provided data.
1. Inventory Turnover:
- Hexcel Corp.'s inventory turnover has been relatively stable over the past eight quarters, ranging from 3.52 to 4.30 times.
- A higher inventory turnover indicates that the company is selling its inventory quickly, which is generally positive.
- The average inventory turnover for the periods analyzed is around 3.95 times.
2. Receivables Turnover:
- The receivables turnover for Hexcel Corp. has varied between 6.20 and 7.62 times in the last eight quarters.
- A higher receivables turnover suggests that the company is collecting its receivables efficiently.
- The average receivables turnover for the periods studied is approximately 6.99 times.
3. Payables Turnover:
- Hexcel Corp.'s payables turnover experienced fluctuations, with values ranging from 7.85 to 13.62 times in the analyzed quarters.
- A higher payables turnover ratio indicates that the company is paying its suppliers quickly.
- The average payables turnover for the periods reviewed is about 10.54 times.
4. Working Capital Turnover:
- The working capital turnover for Hexcel Corp. has shown some variability, with values ranging from 3.18 to 3.90 times.
- A higher working capital turnover ratio signifies that the company efficiently utilizes its working capital to generate sales.
- The average working capital turnover for the periods observed is around 3.44 times.
In summary, Hexcel Corp.'s activity ratios reflect a mix of efficiency in managing inventory, receivables, payables, and working capital. The company seems to be effectively managing its assets and liabilities to support its business operations. Further analysis in conjunction with other financial metrics would provide a more holistic view of the company's performance.
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 | 79.78 | 84.91 | 90.41 | 91.50 | 84.27 | 83.41 | 75.38 | 76.27 | 72.80 | 71.26 | 66.53 | 59.18 | 52.70 | 60.43 | 67.46 | 70.62 | 64.77 | 68.57 | 66.70 | 67.27 |
| Days of sales outstanding (DSO) | days | 48.73 | 50.10 | 56.26 | 60.21 | 52.73 | 50.25 | 59.32 | 56.60 | 45.48 | 52.36 | 52.01 | 48.35 | 31.14 | 31.47 | 34.57 | 43.23 | 35.80 | 45.50 | 50.03 | 53.14 |
| Number of days of payables | days | 37.96 | 23.67 | 29.44 | 31.48 | 41.04 | 31.15 | 28.71 | 32.27 | 33.54 | 26.26 | 24.85 | 24.09 | 17.28 | 14.05 | 15.60 | 30.27 | 30.64 | 32.02 | 34.95 | 33.22 |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities. Let's analyze the activity ratios of Hexcel Corp. based on the provided data:
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an increase from Q1 2022 to Q2 2023, indicating that Hexcel Corp. is holding inventory for a longer period.
- While some fluctuations occurred, the overall trend suggests that the company may be experiencing challenges in managing and selling its inventory efficiently.
2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for Hexcel Corp. to collect revenue after making a sale.
- The trend in DSO shows fluctuations, but there is a general increase from Q1 2022 to Q2 2023, indicating that the company is taking longer to collect its accounts receivable.
- This trend may signify potential issues with credit policies or difficulties in collecting outstanding payments from customers.
3. Number of Days of Payables:
- The number of days of payables measures how long it takes for Hexcel Corp. to pay its suppliers.
- The trend in payables days shows variability but generally remained within a certain range over the periods analyzed.
- The company seems to be effectively managing its payables, with occasional fluctuations that may be impacted by factors such as changes in payment terms or supplier relationships.
Overall, the activity ratios of Hexcel Corp. suggest potential areas for improvement in inventory management and accounts receivable collection. Monitoring and addressing these trends can help enhance operational efficiency and cash flow management for the company.
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 | 1.05 | 1.04 | 0.99 | 0.97 | 0.93 | 0.90 | 0.86 | 0.80 | 0.74 | 0.70 | 0.66 | 0.68 | 0.78 | 0.93 | 1.06 | 1.18 | 1.19 | 1.20 | 1.19 | 1.17 |
| Total asset turnover | 0.60 | 0.61 | 0.57 | 0.55 | 0.54 | 0.53 | 0.51 | 0.48 | 0.46 | 0.43 | 0.41 | 0.43 | 0.50 | 0.58 | 0.63 | 0.66 | 0.74 | 0.73 | 0.72 | 0.70 |
Hexcel Corp.'s long-term activity ratios, namely fixed asset turnover and total asset turnover, provide insights into the company's efficiency in generating sales relative to its investment in assets.
Fixed asset turnover indicates how well the company is utilizing its fixed assets to generate revenues. From Q1 2022 to Q4 2023, Hexcel Corp.'s fixed asset turnover has shown a generally increasing trend, starting at 0.82 and reaching 1.07. This indicates that the company has been able to generate more sales per dollar invested in fixed assets over time, suggesting improved efficiency in utilizing its long-term assets.
Total asset turnover measures the company's ability to generate sales from all its assets. Hexcel Corp.'s total asset turnover has also shown an upward trend from Q1 2022 to Q4 2023, increasing from 0.49 to 0.61. This indicates that the company has been more efficient in utilizing all its assets to generate sales, showcasing an overall improvement in asset management efficiency.
Overall, the increasing trends in both fixed asset turnover and total asset turnover suggest that Hexcel Corp. has been improving its efficiency in generating sales in relation to its investment in long-term assets, which is a positive indicator of the company's operational performance and asset utilization.