Ingredion Incorporated (INGR)
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 | 4.64 | 4.60 | 4.74 | 4.58 | 4.42 | 4.34 | 4.06 | 3.96 | 4.04 | 4.19 | 4.33 | 4.45 | 4.75 | 4.88 | 4.81 | 5.01 | 5.14 | 5.18 | 5.53 | 5.71 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 3.58 | 3.60 | 4.13 | 4.29 | 5.02 | 5.07 | 5.16 | 5.42 | 5.57 | 5.85 | 5.60 | 5.09 | 5.82 | 5.28 | 3.78 | 4.93 | 3.82 | 4.03 | 3.91 | 4.97 |
Ingredion Incorporated's activity ratios provide insights into the efficiency of the company in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory within a specific period. Ingredion's inventory turnover has been decreasing gradually from 5.71 in March 2020 to 4.64 in December 2024. This downward trend may indicate slower sales relative to the level of inventory held, which could tie up working capital and increase holding costs.
2. Receivables Turnover: The receivables turnover ratio shows how efficiently a company collects on credit sales. In this case, the data provided shows no information for this ratio across the years, which limits the analysis of Ingredion's receivables management efficiency.
3. Payables Turnover: The payables turnover ratio reflects how fast a company pays its suppliers. Missing data for this ratio prevents a comprehensive analysis of how Ingredion manages its payables over time.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales. Ingredion's working capital turnover ratio fluctuates over the years, ranging from 3.58 in December 2024 to 5.85 in September 2022. A decreasing trend in this ratio may suggest that the company is less efficient in converting working capital into sales.
Overall, the analysis of Ingredion Incorporated's activity ratios highlights areas where the company may need to focus on improving efficiency, particularly in inventory management and working capital utilization. The lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall liquidity and operational 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 | 78.73 | 79.40 | 77.04 | 79.75 | 82.55 | 84.01 | 89.98 | 92.12 | 90.34 | 87.17 | 84.34 | 82.00 | 76.90 | 74.72 | 75.80 | 72.88 | 70.99 | 70.51 | 65.95 | 63.88 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Ingredion's Days of Inventory on Hand (DOH) measures the number of days it takes for the company to sell its average inventory level. Over the past few years, the trend shows an increase in DOH, from 63.88 days as of March 31, 2020, to 78.73 days by December 31, 2024. This indicates that Ingredion is holding inventory for a longer period, which could tie up capital and increase holding costs.
The Days of Sales Outstanding (DSO) ratio, which reflects the average number of days it takes for the company to collect its accounts receivable, was not provided in the data. Typically, a lower DSO is preferred as it signifies a quicker collection of receivables, improving cash flow and liquidity.
The Number of Days of Payables, which represents the average number of days it takes for the company to pay its suppliers, was also not available in the data. A longer period of payables could indicate that Ingredion is effectively using trade credit to manage its working capital and cash flow.
Overall, while the increasing trend in DOH signals a potential concern regarding inventory management efficiency, a comprehensive analysis of all three activity ratios (DOH, DSO, and Number of Days of Payables) would provide a more balanced view of Ingredion's working capital management and operational performance.
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 | — | — | — | — | — | 3.43 | 3.40 | 3.42 | 3.30 | 3.34 | 3.14 | 2.93 | 2.85 | 2.84 | 2.51 | 2.57 | 2.44 | 2.52 | 2.70 | 2.82 |
| Total asset turnover | 1.00 | 1.00 | 1.07 | 1.08 | 1.07 | 1.09 | 1.08 | 1.07 | 1.05 | 1.04 | 1.01 | 0.96 | 0.98 | 0.96 | 0.91 | 0.89 | 0.87 | 0.92 | 0.91 | 1.04 |
Ingredion Incorporated's fixed asset turnover ratio has shown a positive trend over the years, indicating an improving efficiency in generating sales from its fixed assets. The ratio has increased steadily from 2.82 in March 2020 to 3.40 in June 2023. This suggests that the company has been utilizing its fixed assets more effectively to generate revenue.
On the other hand, the total asset turnover ratio, which measures how efficiently the company is using all its assets to generate revenue, has also displayed an upward trend. It increased from 1.04 in March 2020 to 1.07 in June 2024. This improvement suggests that the company has been able to generate more sales from its total asset base over the years.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that Ingredion Incorporated has been effectively managing its assets to generate more sales, which is a positive sign for the company's long-term operational efficiency.