IDEX Corporation (IEX)

Short-term

Turnover ratios

For IDEX Corporation, let's analyze the activity ratios based on the provided data:

1. Inventory Turnover: The inventory turnover ratios for the years 2020 to 2024 are as follows - 4.57, 4.16, 3.73, 4.34, and 4.24 respectively. This ratio indicates the efficiency with which the company manages its inventory levels. A higher turnover ratio suggests that IDEX is selling its inventory more quickly. A decrease in the ratio from 2020 to 2022 may indicate potential inventory management challenges, but a slight improvement in 2023 and 2024.

2. Receivables Turnover: No data is provided for receivables turnover for any of the years. This ratio typically measures how effectively a company is collecting its accounts receivable. The absence of data makes it difficult to evaluate IDEX's efficiency in collecting payments from customers.

3. Payables Turnover: No data is provided for payables turnover for any of the years. This ratio reflects how quickly a company pays its suppliers. Without this information, it is challenging to assess IDEX's payment practices.

4. Working Capital Turnover: The working capital turnover ratios for the years 2020 to 2024 are 1.87, 2.31, 3.72, 3.46, and 3.39 respectively. This ratio evaluates how efficiently IDEX is utilizing its working capital to generate sales. The increasing trend from 2020 to 2022 indicates that the company is generating more revenue per dollar of working capital invested. However, a slight decline in 2023 and 2024 may suggest a decrease in efficiency.

In summary, IDEX Corporation has demonstrated varying performance in its activity ratios over the years. While the inventory turnover ratios showed some fluctuations, the working capital turnover improved initially but showed a slight decline in the later years. The absence of data for receivables and payables turnover limits a comprehensive analysis of IDEX's overall efficiency in managing its operating cycle.

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Average number of days

The trend analysis of IDEX Corporation's activity ratios reveals a consistent increase in the Days of Inventory on Hand (DOH) from 79.91 days as of December 31, 2020, to 86.01 days as of December 31, 2024. This indicates that the company is holding inventory for a longer period, which may lead to higher carrying costs and potential obsolescence risks.

The Days of Sales Outstanding (DSO) and Number of Days of Payables have not been provided for the period under review, suggesting a lack of visibility into the company's accounts receivable collection efficiency and payment cycle regarding suppliers. It would be beneficial to have this data to assess the effectiveness of IDEX Corporation's receivables and payables management.

Overall, while the increasing trend in Days of Inventory on Hand raises concerns about inventory management efficiency, the absence of information on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive evaluation of IDEX Corporation's working capital management and cash flow conversion cycle.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. For IDEX Corporation, the fixed asset turnover ratio has shown a consistent increase from 7.88 in 2020 to 8.45 in 2021, before slightly declining to 8.33 in 2022. This indicates that the company has been effectively utilizing its fixed assets to generate sales over the years.

On the other hand, the total asset turnover ratio assesses how effectively a company is using all its assets to generate sales. IDEX Corporation's total asset turnover ratio has shown a gradual improvement, increasing from 0.53 in 2020 to 0.56 in 2021, further rising to 0.58 in 2022, and then decreasing to 0.56 in 2023 before dropping to 0.48 in 2024. This suggests that while the company has been efficient in utilizing its total assets to generate sales, there has been a recent decline in the ratio which may warrant further investigation.

Overall, the trend in both the fixed asset turnover and the total asset turnover ratios for IDEX Corporation highlights the company's efficiency in generating revenue from its assets, with a slight dip noted in the most recent year for the latter ratio.