Insteel Industries Inc (IIIN)
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 | 6.09 | 5.88 | 4.75 | 4.81 | 3.94 | 2.62 | 2.51 | 3.48 | 3.43 | 3.54 | 3.76 | 3.57 | 5.51 | 6.54 | 5.89 | 6.23 | 6.88 | 6.37 | 4.18 | 3.55 |
| Receivables turnover | 13.03 | 10.24 | 10.58 | — | 11.89 | 10.12 | — | — | — | 8.70 | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 24.03 | 17.69 | 16.60 | 17.76 | 21.88 | 11.06 | 6.26 | 7.57 | 7.90 | 5.67 | 4.44 | 5.45 | 11.16 | 11.58 | 9.14 | 11.62 | 14.06 | 20.90 | 13.97 | 11.84 |
| Working capital turnover | 3.03 | 2.57 | 2.85 | 3.15 | 3.36 | 3.03 | 3.18 | 3.46 | 3.96 | 3.32 | 3.66 | 3.89 | 4.04 | 3.29 | 3.25 | 3.51 | 3.34 | 3.44 | 3.52 | 3.48 |
Insteel Industries Inc has shown varying trends in its activity ratios over the past few quarters.
The inventory turnover ratio has generally been increasing, indicating that the company has been able to sell its inventory at a faster rate. This can be a positive sign of efficient inventory management.
The receivables turnover ratio has also shown fluctuations, with significant increases and decreases in certain quarters. Ideally, a higher receivables turnover ratio signifies that the company is able to collect its outstanding receivables faster. However, the incomplete data for certain quarters limits a detailed analysis of this ratio.
The payables turnover ratio has been inconsistent, with fluctuations in payment periods to suppliers. A higher payables turnover ratio could imply that the company is paying its suppliers more quickly, which may not always be advantageous if it affects cash flow management negatively.
The working capital turnover ratio has remained relatively stable, indicating that the company is efficiently utilizing its working capital to generate revenues. A consistent working capital turnover ratio suggests that the company's operations are running smoothly without significant fluctuations in working capital usage.
Overall, while the inventory turnover ratio has shown improvement, the receivables and payables turnover ratios have displayed fluctuating patterns. The working capital turnover ratio has been steady, suggesting consistent efficiency in utilizing working capital.
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 | 59.96 | 62.07 | 76.88 | 75.93 | 92.71 | 139.40 | 145.47 | 104.79 | 106.50 | 103.00 | 97.12 | 102.17 | 66.20 | 55.80 | 61.92 | 58.58 | 53.08 | 57.31 | 87.32 | 102.85 |
| Days of sales outstanding (DSO) | days | 28.01 | 35.66 | 34.48 | — | 30.69 | 36.07 | — | — | — | 41.97 | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 15.19 | 20.64 | 21.99 | 20.55 | 16.68 | 33.00 | 58.32 | 48.22 | 46.19 | 64.42 | 82.19 | 66.91 | 32.71 | 31.53 | 39.93 | 31.41 | 25.97 | 17.47 | 26.13 | 30.82 |
The activity ratios of Insteel Industries Inc reflect how efficiently the company manages its operations and converts assets into sales.
Days of Inventory on Hand (DOH) measures how quickly the company turns its inventory into sales. Insteel Industries has shown a decreasing trend in DOH over the past few quarters, indicating improved inventory management efficiency. Although there were some fluctuations, the company reduced the number of days of inventory on hand from 92.71 days in Dec 2022 to 59.96 days in Dec 2023.
Days of Sales Outstanding (DSO) indicates how long it takes for the company to collect its accounts receivable. Insteel Industries has fluctuating data for DSO with missing values in some quarters. However, the company seems to have managed its accounts receivable efficiently, particularly when comparing it to previous quarters where data was available.
Number of Days of Payables measures the average number of days the company takes to pay its suppliers. Insteel Industries has shown a fluctuating trend in the number of days of payables, indicating some variability in the company's payment practices. However, the company has shown a decreasing trend in recent quarters, which could imply better cash flow management and potentially stronger relationships with suppliers.
Overall, Insteel Industries Inc appears to have improved its inventory management efficiency, maintained a relatively stable accounts receivable collection process, and displayed some variability in its payment practices to suppliers.
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 | 4.65 | 5.41 | 5.91 | 6.82 | 7.63 | 7.64 | 7.30 | 6.75 | 6.28 | 5.59 | 5.26 | 4.95 | 4.87 | 4.65 | 4.41 | 4.03 | 4.36 | 4.33 | 4.33 | 4.25 |
| Total asset turnover | 1.54 | 1.45 | 1.58 | 1.78 | 1.93 | 1.75 | 1.64 | 1.72 | 1.76 | 1.51 | 1.50 | 1.54 | 1.59 | 1.40 | 1.32 | 1.41 | 1.46 | 1.55 | 1.52 | 1.49 |
Insteel Industries Inc's long-term activity ratios indicate the efficiency with which the company utilizes its assets to generate sales revenue. The fixed asset turnover ratio has been fluctuating over the past few quarters, but generally, it has been declining, implying that the company's fixed assets are less productive in generating sales compared to previous periods. This decrease may indicate underutilization or obsolescence of fixed assets.
On the other hand, the total asset turnover ratio has also shown some variability but has remained relatively stable over time. This ratio suggests that Insteel Industries Inc is efficiently using its total assets to generate sales revenue, although there has been a slight decline in recent quarters. The company may need to evaluate its asset management strategies to maintain or improve this efficiency in the long term.
Overall, while there are fluctuations in both ratios, Insteel Industries Inc should closely monitor and possibly reassess its asset utilization efficiency to optimize performance and profitability.