International Flavors & Fragrances Inc (IFF)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.60 | 3.52 | 3.59 | 3.23 | 3.15 | 3.11 | 2.90 | 2.81 | 2.63 | 2.68 | 2.77 | 2.97 | 3.15 | 2.76 | 2.19 | 1.52 | 2.65 | 2.63 | 2.59 | 2.83 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.14 | 2.19 | 2.39 | 4.39 | 4.53 | 4.29 | 4.74 | 4.77 | 3.37 | 4.40 | 4.20 | 3.57 | 3.48 | 2.78 | 2.64 | 2.13 | 4.40 | 3.83 | 3.06 | 3.73 |
In analyzing the activity ratios of International Flavors & Fragrances Inc, we observe the following trends:
1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. From March 31, 2020, to December 31, 2024, International Flavors & Fragrances Inc's inventory turnover ratio steadily increased from 2.83 to 3.60. This indicates that the company improved its efficiency in selling and replenishing its inventory over the period.
2. Receivables Turnover: Unfortunately, the data provided for receivables turnover is not available, making it challenging to assess how effectively the company collects payments from its customers.
3. Payables Turnover: Similar to receivables turnover, the data for payables turnover is missing, which would have helped in understanding how quickly the company pays its suppliers.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. International Flavors & Fragrances Inc's working capital turnover ratio fluctuated over the period, reaching a peak at 4.77 on March 31, 2023, and dropping to 2.19 on September 30, 2024. This indicates varying levels of efficiency in utilizing working capital to generate revenue.
Overall, International Flavors & Fragrances Inc demonstrated improved efficiency in managing inventory turnover over the years, while the data gaps for receivables and payables turnovers limit a comprehensive analysis of the company's overall working capital management efficiency.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 101.36 | 103.84 | 101.65 | 113.14 | 115.94 | 117.32 | 125.78 | 130.01 | 138.75 | 136.24 | 131.89 | 123.05 | 115.94 | 132.23 | 166.86 | 240.58 | 137.78 | 138.98 | 141.18 | 129.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
International Flavors & Fragrances Inc's Days of Inventory on Hand (DOH) ratio has fluctuated over the years, indicating changes in the efficiency of managing inventory. The ratio reached its peak at 240.58 days on March 31, 2021, which suggests a significant increase in the number of days inventory is held before being sold. Subsequently, the ratio decreased to 101.36 days by December 31, 2024, reflecting a more efficient inventory turnover.
Unfortunately, there is no data available for the Days of Sales Outstanding (DSO) and Number of Days of Payables ratios, making it challenging to assess the company's receivables and payables management efficiency. In the absence of this information, a comprehensive analysis of International Flavors & Fragrances Inc's overall working capital and liquidity performance is limited.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 2.82 | 2.81 | 2.90 | 2.56 | 3.11 | 3.02 | 2.89 | 2.67 | 1.95 | 1.77 | 1.35 | 3.49 | 3.69 | 3.76 | 3.88 |
| Total asset turnover | 0.40 | 0.38 | 0.38 | 0.37 | 0.37 | 0.35 | 0.34 | 0.35 | 0.35 | 0.37 | 0.32 | 0.31 | 0.29 | 0.25 | 0.20 | 0.15 | 0.38 | 0.39 | 0.39 | 0.41 |
For International Flavors & Fragrances Inc, the long-term activity ratios provide insights into the efficiency of the company in utilizing its assets to generate sales.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures the company's ability to generate sales from its investments in fixed assets.
- The trend shows a declining pattern from March 2020 to September 2021, indicating a decrease in the efficiency of using fixed assets to generate revenue.
- However, from September 2021 to June 2023, there is a gradual improvement in the ratio, suggesting better utilization of fixed assets.
- The ratio peaks in September 2022 at 3.11, indicating that the company generated $3.11 in sales for every dollar invested in fixed assets at that point.
- There is a slight decline in the ratio in the following periods, indicating some fluctuations in asset turnover efficiency.
2. Total Asset Turnover:
- The total asset turnover ratio measures the company's efficiency in generating sales from all its assets.
- The trend for this ratio shows fluctuations but generally remains relatively stable over the period.
- The ratio increases from March 2021 to December 2022, indicating an improvement in asset utilization efficiency.
- By December 2024, the total asset turnover ratio reaches 0.40, suggesting that the company generated $0.40 in sales for every dollar invested in total assets.
- Overall, the total asset turnover ratio indicates a stable and consistent performance in utilizing all assets to generate sales.
In conclusion, while there have been fluctuations, the efficiency of International Flavors & Fragrances Inc in generating sales from its fixed and total assets has shown improvement over the analyzed period, although some variability is observed in the fixed asset turnover ratio.