Innospec Inc (IOSP)
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 | 5.90 | 5.20 | 5.38 | 5.72 | 5.86 | 5.32 | 5.07 | 4.88 | 4.68 | 4.35 | 4.26 | 4.67 | 4.77 | 4.52 | 4.57 | 5.04 | 5.22 | 5.02 | 5.31 | 5.41 |
| Receivables turnover | 5.40 | 5.72 | 6.31 | 6.10 | 5.42 | 6.44 | 6.48 | 5.84 | 5.87 | 5.45 | 5.09 | 4.79 | 5.21 | 4.56 | 4.51 | 4.68 | 5.38 | 6.17 | 6.46 | 5.05 |
| Payables turnover | 10.84 | 9.83 | 11.41 | 10.46 | 10.76 | 12.08 | 11.45 | 10.03 | 10.55 | 9.57 | 8.52 | 8.90 | 8.91 | 9.03 | 9.26 | 9.83 | 11.63 | 14.72 | 17.46 | 12.28 |
| Working capital turnover | 3.15 | 3.16 | 3.48 | 3.54 | 3.79 | 3.78 | 4.11 | 4.06 | 4.21 | 4.01 | 4.02 | 3.79 | 3.79 | 3.68 | 3.60 | 3.48 | 3.80 | 4.26 | 4.40 | 4.15 |
Innospec Inc's inventory turnover ratio has shown a gradual decline over the past few years, indicating that the company is taking longer to sell its inventory. This could suggest potential inefficiencies in managing and selling inventory.
The receivables turnover ratio of Innospec Inc has fluctuated over the years but generally shows a decreasing trend recently. A decreasing receivables turnover ratio may indicate potential issues with collecting receivables efficiently from customers.
On the other hand, the payables turnover ratio of Innospec Inc has also been experiencing a decreasing trend, implying that the company is taking longer to pay its suppliers. This could be a signal of potential liquidity issues or strained relationships with suppliers.
In terms of the working capital turnover ratio, which measures how efficiently a company is using its working capital to generate sales, Innospec Inc's ratio has fluctuated over the years. The ratio indicates a company's ability to generate sales using its working capital, and a lower ratio may suggest that the company is not effectively utilizing its working capital.
Overall, based on the activity ratios analyzed, it appears that Innospec Inc may be facing challenges in managing its inventory, receivables, payables, and working capital efficiently. Further investigation and analysis are recommended to understand the underlying factors contributing to these trends and to address any potential areas of improvement.
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 | 61.86 | 70.16 | 67.88 | 63.84 | 62.25 | 68.55 | 72.03 | 74.86 | 78.07 | 83.92 | 85.73 | 78.13 | 76.52 | 80.83 | 79.93 | 72.37 | 69.98 | 72.70 | 68.74 | 67.43 |
| Days of sales outstanding (DSO) | days | 67.58 | 63.82 | 57.87 | 59.88 | 67.39 | 56.70 | 56.35 | 62.46 | 62.19 | 66.99 | 71.74 | 76.27 | 70.00 | 80.08 | 80.98 | 78.03 | 67.78 | 59.13 | 56.46 | 72.24 |
| Number of days of payables | days | 33.66 | 37.13 | 31.98 | 34.91 | 33.93 | 30.21 | 31.89 | 36.38 | 34.59 | 38.16 | 42.82 | 41.02 | 40.99 | 40.43 | 39.41 | 37.14 | 31.40 | 24.80 | 20.91 | 29.71 |
Innospec Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the fiscal years, ranging from around 62 to 86 days. The trend indicates a general increase in inventory holding periods, suggesting potential inefficiencies in inventory management which may tie up company resources.
On the other hand, Days of Sales Outstanding (DSO) has also varied, but generally falling between approximately 56 to 81 days. This metric indicates how long it takes for the company to collect payment on sales, with a lower DSO being more favorable. The company has shown improvement in collecting receivables more efficiently over time.
Additionally, the Number of Days of Payables has ranged from about 21 to 43 days. This ratio reflects the average time it takes for a company to pay off its accounts payable, with a higher number of days being more favorable as it represents longer payment terms and better cash flow management.
Overall, analyzing these activity ratios suggests that while Innospec Inc has room for improvement in managing inventory levels more efficiently, it has been able to collect receivables more promptly and strategically extend its payables, contributing to better working capital management.
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 | 6.84 | 6.73 | 6.97 | 7.22 | 7.26 | 8.03 | 8.31 | 8.57 | 8.89 | 9.03 | 8.25 | 7.56 | 6.92 | 6.48 | 5.93 | 5.52 | 5.66 | 6.23 | 6.94 | 7.57 |
| Total asset turnover | 1.06 | 1.04 | 1.11 | 1.12 | 1.14 | 1.21 | 1.25 | 1.23 | 1.22 | 1.12 | 1.06 | 1.00 | 0.94 | 0.92 | 0.87 | 0.81 | 0.85 | 0.95 | 1.03 | 1.03 |
The fixed asset turnover ratio for Innospec Inc has been fluctuating over the past few years, starting at 7.57 in March 2020 and reaching a low of 5.52 in March 2021 before gradually increasing to 7.22 by March 2024. This ratio indicates the efficiency with which the company is utilizing its fixed assets 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 sales, has shown a declining trend from 1.03 in March 2020 to 1.06 in June 2022, before recovering slightly to 1.06 by June 2024. This suggests that the company's overall asset utilization has been relatively stable over the period under consideration.
In general, the fixed asset turnover ratio indicates a positive trend in asset efficiency, while the total asset turnover ratio shows stability in overall asset utilization. It is essential for management to continue monitoring these ratios to ensure optimal asset management and sustainable growth for Innospec Inc.