International Flavors & Fragrances Inc (IFF)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.45 | 3.15 | 2.63 | 3.15 | 2.65 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 3.14 | 4.53 | 3.37 | 3.48 | 4.40 |
International Flavors & Fragrances Inc's inventory turnover has improved over the years, increasing from 2.65 in 2020 to 3.45 in 2024. This indicates that the company is selling its inventory at a faster rate, which is a positive sign for efficiency.
On the other hand, the receivables turnover, payables turnover, and working capital turnover ratios are all not available for analysis as the values are not provided in the data. This lack of data limits our ability to assess the efficiency of the company in managing its receivables, payables, and working capital.
In conclusion, the improvement in inventory turnover for International Flavors & Fragrances Inc demonstrates positive efficiency in selling its products. However, a more comprehensive analysis would require data on receivables turnover, payables turnover, and working capital turnover to provide a more holistic view of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.78 | 115.94 | 138.75 | 115.94 | 137.78 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for International Flavors & Fragrances Inc, the trend in Days of Inventory on Hand (DOH) shows a decrease from 137.78 days in December 2020 to 105.78 days in December 2024. This indicates an improvement in managing inventory levels efficiently over the years.
Days of Sales Outstanding (DSO) and Number of Days of Payables data were not available for analysis, which limits the comprehensive view of the company's activity ratios related to accounts receivable and accounts payable management.
Overall, the decreasing trend in Days of Inventory on Hand is a positive indication of potential better inventory management by International Flavors & Fragrances Inc. However, a more detailed analysis of the other activity ratios like DSO and payables turnover would provide a more holistic view of the company's efficiency in managing working capital and cash flow.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 2.56 | 2.67 | 3.49 |
| Total asset turnover | 0.40 | 0.37 | 0.35 | 0.29 | 0.38 |
The Fixed Asset Turnover ratio for International Flavors & Fragrances Inc has declined over the years, indicating that the company generates less revenue for each dollar invested in fixed assets. In 2020, the ratio was 3.49, which dropped to 2.67 in 2021, further declining to 2.56 in 2022, and then there was no available data for 2023 and 2024. This trend suggests that the company may be facing challenges in efficiently utilizing its fixed assets to generate sales.
On the other hand, the Total Asset Turnover ratio for the company fluctuated during the same period. It stood at 0.38 in 2020, decreased to 0.29 in 2021, then increased to 0.35 in 2022, further improved to 0.37 in 2023, and rose to 0.40 in 2024. This trend indicates that International Flavors & Fragrances Inc has been able to increase its revenue relative to its total assets, showing an improvement in its overall asset utilization efficiency.
Overall, while the company's Fixed Asset Turnover has shown a declining trend, its Total Asset Turnover has demonstrated improvement, suggesting mixed performance in terms of long-term activity ratios. Further analysis would be essential to understand the underlying factors contributing to these changes and their implications for the company's operational efficiency and financial performance.