IDEX Corporation (IEX)

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 4.34 4.12 3.81 3.64 3.73 3.71 3.60 3.71 4.16 4.20 3.93 4.47 4.57 4.36 4.09 3.97 4.67 4.52 4.56 4.59
Receivables turnover 7.65 7.65 7.31 7.34 7.19 7.60 6.99 6.96 7.76 7.27 7.11 7.05 8.02 8.51 8.83 7.52 8.37 7.89 7.66 7.47
Payables turnover 10.17 10.44 9.69 8.38 8.40 8.60 7.69 7.56 8.61 8.45 7.91 7.94 8.71 9.78 9.68 8.58 9.89 9.32 8.54 8.52
Working capital turnover 3.46 3.20 3.32 3.17 3.72 2.73 2.87 2.36 2.31 2.39 2.43 1.89 1.87 2.11 2.40 2.67 2.76 3.05 2.93 3.16

Inventory turnover for Idex Corporation has been relatively stable over the past eight quarters, ranging from 3.60 to 4.34, indicating that the company efficiently manages its inventory levels. A higher turnover ratio suggests faster sales of inventory, which is generally positive for a company.

Receivables turnover has also been consistent, ranging from 6.99 to 7.65. This indicates that Idex Corporation effectively collects its accounts receivable, with a higher ratio reflecting a shorter collection period.

Payables turnover has shown some fluctuations but generally stays around 7.56 to 10.44. A higher payables turnover ratio suggests that the company takes less time to pay its suppliers, which could potentially indicate good relationships with vendors.

Working capital turnover has varied quite a bit, ranging from 2.36 to 3.72. A higher working capital turnover ratio indicates that the company efficiently uses its working capital to generate sales revenue. In this case, the fluctuation may indicate changes in the company's working capital management strategies.

Overall, Idex Corporation's activity ratios suggest efficient management of inventory, receivables, payables, and working capital, which is essential for operational effectiveness and financial health. Tracking these ratios over time can provide insights into the company's operational efficiency and effectiveness in managing its resources.

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 84.07 88.60 95.80 100.38 97.94 98.30 101.26 98.40 87.77 86.97 92.91 81.69 79.91 83.77 89.15 91.83 78.21 80.81 80.12 79.57
Days of sales outstanding (DSO) days 47.69 47.69 49.95 49.74 50.79 48.03 52.25 52.41 47.05 50.24 51.35 51.78 45.49 42.91 41.34 48.51 43.63 46.28 47.62 48.86
Number of days of payables days 35.90 34.97 37.67 43.57 43.45 42.45 47.46 48.27 42.37 43.22 46.13 45.96 41.89 37.33 37.70 42.53 36.90 39.16 42.74 42.83

To analyze Idex Corporation's activity ratios, we will focus on three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH): This ratio indicates the number of days it takes for the company to sell its inventory. A lower DOH is generally more favorable as it suggests efficient inventory management. Idex Corporation's DOH has been fluctuating over the past eight quarters, ranging from 84.07 days to 100.38 days. The decreasing trend from Q1 2023 to Q4 2023 is a positive sign of improving inventory turnover.

2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes for the company to collect payment after a sale. A lower DSO indicates better cash flow management. Idex Corporation's DSO has also varied over the quarters, with values between 47.69 days and 52.41 days. The consistent DSO in Q3 and Q4 2023 suggests stable credit and collection practices.

3. Number of Days of Payables: This ratio represents the number of days the company takes to pay its suppliers. A higher number of days indicates that the company is taking longer to settle its payables, which can improve cash flows. Idex Corporation's Number of Days of Payables has shown some volatility, ranging from 34.97 days to 48.27 days. The decrease in Q4 2023 compared to Q1 2023 indicates a potential improvement in payment terms.

Overall, Idex Corporation has shown some positive trends in its activity ratios, particularly in managing inventory and payables efficiently. However, continuous monitoring and potential strategies to further optimize these ratios may enhance the company's overall financial performance.

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 7.61 7.82 7.89 8.25 8.33 10.17 9.20 8.79 8.45 8.47 8.09 7.96 7.88 7.99 8.47 8.71 8.90 9.16 9.09 9.17
Total asset turnover 0.56 0.58 0.58 0.58 0.58 0.63 0.61 0.57 0.56 0.55 0.53 0.54 0.53 0.55 0.59 0.63 0.65 0.67 0.69 0.70

Long-term activity ratios, such as fixed asset turnover and total asset turnover, provide insights into how efficiently a company is utilizing its assets to generate sales.

In the case of Idex Corporation, the fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 7.61 to 10.17. This indicates that the company is generating significant sales relative to its investment in fixed assets such as property, plant, and equipment. A high fixed asset turnover ratio is generally positive as it shows that the company is effectively using its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio for Idex Corporation has been consistently lower compared to the fixed asset turnover, ranging from 0.56 to 0.63. This suggests that the company is not as efficient in generating sales compared to its total asset base, which includes both fixed and current assets. A lower total asset turnover ratio may indicate that there is room for improvement in utilizing the company's total asset base more effectively to generate revenue.

Overall, while Idex Corporation demonstrates strong efficiency in utilizing its fixed assets to generate sales, there may be opportunities to improve the utilization of its total asset base to enhance overall operational efficiency and profitability.