Ingredion Incorporated (INGR)
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 | 4.47 | 4.39 | 4.09 | 4.00 | 4.08 | 4.25 | 4.38 | 4.51 | 5.12 | 5.32 | 5.30 | 5.55 | 5.31 | 5.69 | 5.95 | 5.99 | 5.81 | 3.86 | 3.94 | 3.98 |
| Receivables turnover | 6.38 | 5.96 | 6.01 | 5.63 | 5.63 | 5.49 | 5.34 | 5.02 | 6.11 | 5.98 | 5.69 | 5.91 | 5.92 | 6.51 | 6.85 | 6.01 | 6.00 | 5.85 | 5.65 | 5.72 |
| Payables turnover | 8.33 | — | — | — | 7.46 | — | — | — | 7.76 | — | — | — | 8.13 | — | — | — | 9.93 | — | — | — |
| Working capital turnover | 5.02 | 5.07 | 5.16 | 5.42 | 5.57 | 5.85 | 5.60 | 5.10 | 5.83 | 5.29 | 3.79 | 4.93 | 5.04 | 4.03 | 3.83 | 4.78 | 4.91 | 4.14 | 4.34 | 4.56 |
Ingredion Inc's activity ratios provide insight into the efficiency of the company's operations in managing its assets and resources.
1. Inventory turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Ingredion Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 3.96 to 4.42. This indicates that the company efficiently manages its inventory, with a higher turnover suggesting effective inventory control and potentially lower carrying costs.
2. Receivables turnover: The receivables turnover ratio shows how efficiently a company collects payments from its customers. Ingredion Inc's receivables turnover has shown consistency, fluctuating between 5.63 and 6.38. A higher turnover ratio suggests that the company has effective credit and collection policies in place, enabling it to swiftly convert credit sales into cash.
3. Payables turnover: Unfortunately, data for payables turnover is missing for Q3 and Q2 of 2023. Payables turnover ratio reflects how quickly a company pays off its suppliers. Ingredion Inc's payables turnover was 8.24 in Q4 2023, indicating that the company efficiently manages its accounts payable, paying off suppliers relatively quickly.
4. Working capital turnover: The working capital turnover ratio measures how effectively a company generates revenue from its working capital. Ingredion Inc's working capital turnover has shown some fluctuation but remained relatively consistent between 5.02 and 5.85. A higher turnover ratio indicates that the company efficiently utilizes its working capital to generate sales revenue.
Overall, the activity ratios of Ingredion Inc demonstrate that the company effectively manages its assets, inventory, receivables, and working capital to drive operational efficiency and enhance financial performance.
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 | 81.66 | 83.18 | 89.24 | 91.29 | 89.50 | 85.98 | 83.38 | 80.97 | 71.26 | 68.65 | 68.92 | 65.78 | 68.70 | 64.15 | 61.38 | 60.96 | 62.80 | 94.50 | 92.75 | 91.65 |
| Days of sales outstanding (DSO) | days | 57.21 | 61.23 | 60.69 | 64.84 | 64.81 | 66.53 | 68.36 | 72.67 | 59.70 | 61.02 | 64.15 | 61.76 | 61.64 | 56.07 | 53.28 | 60.76 | 60.85 | 62.41 | 64.66 | 63.84 |
| Number of days of payables | days | 43.82 | — | — | — | 48.92 | — | — | — | 47.06 | — | — | — | 44.88 | — | — | — | 36.76 | — | — | — |
Activity ratios provide insights into how efficiently a company is managing its resources and generating sales. Let's analyze the activity ratios of Ingredion Inc based on the provided data:
1. Days of Inventory on Hand (DOH):
- Ingredion's days of inventory on hand have shown some fluctuations over the quarters, ranging from 82.55 days in Q4 2023 to 92.12 days in Q1 2023.
- A decrease in the DOH indicates that the company is selling inventory faster or managing its inventory levels more effectively.
- Overall, the trend in DOH seems stable, with the company maintaining its inventory for an average of around 85-90 days in recent quarters.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding for Ingredion have ranged from 57.21 days in Q4 2023 to 72.83 days in Q1 2022.
- A lower DSO indicates that the company is collecting receivables more quickly, which is a positive sign of efficient credit management.
- Although there are some fluctuations, the trend in DSO appears to be improving, as the company has reduced its collection period over the quarters.
3. Number of Days of Payables:
- The data for the number of days of payables is missing for several quarters, but there is a noticeable decrease in Q4 2022 compared to Q1 2023.
- A decrease in the number of days of payables suggests that the company is paying its suppliers more quickly.
- However, without complete data, it is challenging to assess the overall trend in payables management for Ingredion.
In conclusion, based on the data provided, Ingredion Inc has shown relatively stable inventory management, improvement in sales collection efficiency, and potentially faster payments to suppliers. Monitoring these activity ratios over time can help assess the company's operational efficiency and effectiveness in managing its working capital.
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 | 3.44 | 3.43 | 3.40 | 3.42 | 3.30 | 3.34 | 3.14 | 2.94 | 2.85 | 2.85 | 2.72 | 2.57 | 2.44 | 2.52 | 2.64 | 2.71 | 2.54 | 2.58 | 2.57 | 2.62 |
| Total asset turnover | 1.07 | 1.09 | 1.08 | 1.07 | 1.05 | 1.04 | 1.01 | 0.97 | 0.99 | 0.97 | 0.91 | 0.89 | 0.87 | 0.92 | 0.89 | 1.01 | 0.97 | 0.94 | 0.96 | 0.98 |
Long-term activity ratios provide insights into how efficiently a company utilizes its assets to generate revenue. In the case of Ingredion Inc, we can analyze two key long-term activity ratios: fixed asset turnover and total asset turnover.
The fixed asset turnover ratio measures the company's ability to generate sales using its fixed assets. Ingredion Inc's fixed asset turnover has been relatively stable over the past eight quarters, ranging between 2.93 and 3.44. This indicates that the company efficiently utilizes its fixed assets to generate revenue, with a slightly increasing trend over time.
On the other hand, the total asset turnover ratio reflects how effectively the company generates sales from all its assets. Ingredion Inc's total asset turnover has also shown a stable trend, fluctuating between 0.96 and 1.09. This suggests that the company is efficient in utilizing its total assets to generate revenue, although there is some variability in performance over the quarters.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that Ingredion Inc efficiently utilizes its assets to generate sales, with a general trend of stable or slightly increasing performance over the quarters analyzed.