IDEX Corporation (IEX)

Short-term

Turnover ratios

The inventory turnover ratio for IDEX Corporation has shown fluctuating trends over the years, ranging from 3.60 to 4.57. Generally, a higher inventory turnover ratio indicates efficient management of inventory levels and effective sales strategies.

Unfortunately, data for the receivables turnover and payables turnover ratios are not provided, which limits our ability to assess the efficiency of the company in collecting receivables and managing payables.

The working capital turnover ratio, on the other hand, has witnessed both increases and decreases during the period under review, varying from 1.87 to 3.72. A higher working capital turnover ratio suggests that the company is using its working capital more efficiently to generate sales revenue.

Overall, a thorough analysis of all activity ratios is crucial to capture the complete picture of IDEX Corporation's operational efficiency and financial performance.

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Average number of days

Given the provided data on IDEX Corporation's activity ratios, we can focus on analyzing the Days of Inventory on Hand (DOH) metric. The DOH reflects the number of days it takes for a company to sell its average inventory.

Looking at the historical trend, we observe fluctuations in IDEX Corporation's inventory management efficiency. The DOH ranged from a low of 79.91 days on December 31, 2020, to a high of 101.25 days on June 30, 2022.

In the most recent data available, as of December 31, 2024, the DOH stood at 86.01 days. This indicates that, on average, IDEX Corporation holds its inventory for about 86 days before selling it. A decreasing trend in DOH might suggest improved inventory turnover and more efficient management of stock levels, leading to potential cost savings and increased liquidity.

Analyzing the DOH alongside other financial metrics like Days of Sales Outstanding (DSO) and Number of Days of Payables could provide a more comprehensive view of IDEX Corporation's working capital management and operational efficiency. However, since the data for DSO and Payables is unavailable, we are unable to provide a complete analysis at this time.

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Long-term

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate revenue. Two key ratios for analyzing long-term activity are the Fixed Asset Turnover and Total Asset Turnover ratios.

1. Fixed Asset Turnover:
- IDEX Corporation's Fixed Asset Turnover ratio has shown some fluctuations over the years, ranging from a high of 10.17 in September 2022 to a low of 6.06 in June 2021.
- A higher Fixed Asset Turnover ratio indicates that the company is effectively using its fixed assets to generate sales. IDEX's ratio trended positively from September 2022 to June 2023, indicating improved asset utilization efficiency during that period.
- A sudden drop in the ratio in the following quarters may suggest a potential decrease in the company's ability to generate revenue from its fixed assets. However, the ratio remained steady around 8-9 in the subsequent periods, reflecting a relatively stable performance.

2. Total Asset Turnover:
- The Total Asset Turnover ratio of IDEX Corporation has varied between 0.46 and 0.63 over the years.
- This ratio measures the company's efficiency in generating sales from all its assets. A higher ratio signifies better asset utilization.
- The ratio generally remained within a narrow range, with slight fluctuations, suggesting consistent performance in generating revenue relative to its total asset base.
- A marginal decline in the ratio towards the end of the period may indicate a need for closer monitoring to ensure optimal asset utilization efficiency.

Overall, based on the trends observed in both Fixed Asset Turnover and Total Asset Turnover ratios, IDEX Corporation has shown moderate to good efficiency in utilizing its fixed and total assets to generate revenue, with some fluctuations noted over the years. Further analysis and comparison with industry benchmarks can provide a more comprehensive assessment of the company's long-term activity performance.