Itron Inc (ITRI)

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	6.47	6.41	6.31	6.25	7.08	8.44	10.20	10.39	10.85	9.90	10.15	10.90	10.58	9.91	9.05	9.66	9.51	9.23	9.16	9.38
Receivables turnover	7.14	6.47	6.02	5.93	6.38	6.65	7.08	6.21	6.43	6.18	6.03	5.60	5.76	5.80	5.65	5.28	5.21	5.17	5.13	4.95
Payables turnover	9.20	7.89	7.17	6.77	6.83	7.29	10.51	8.74	9.31	9.20	10.37	10.17	8.95	8.75	8.53	6.56	6.61	6.76	6.57	6.26
Working capital turnover	4.23	4.54	4.68	4.95	5.41	5.78	6.23	6.47	7.72	6.47	6.17	5.85	5.60	2.93	3.09	3.40	7.56	8.57	8.18	8.70

The inventory turnover ratio for Itron Inc. over the past eight quarters has ranged from 4.80 to 7.81, indicating the number of times inventory was sold and replaced during the period. The decreasing trend from Q1 2022 to Q4 2023 suggests a potential slowing down in inventory turnover efficiency.

The receivables turnover ratio, fluctuating between 5.94 and 7.24 during the same period, measures how quickly the company collects cash from its credit sales. Itron Inc. has shown relatively stable performance in collecting its receivables.

The payables turnover ratio, varying from 5.19 to 8.04, reflects the speed at which the company pays its suppliers. A higher ratio indicates quicker payment to suppliers. Itron Inc. demonstrated some volatility in its payables turnover over the quarters.

The working capital turnover ratio, ranging from 4.24 to 6.66, evaluates how efficiently the company utilizes its working capital to generate sales revenue. The declining trend in this ratio over recent quarters suggests a potential decrease in sales generation efficiency relative to working capital employed.

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	56.42	56.95	57.83	58.36	51.55	43.25	35.78	35.13	33.65	36.88	35.95	33.47	34.49	36.84	40.34	37.79	38.37	39.55	39.86	38.91
Days of sales outstanding (DSO)	days	51.14	56.41	60.64	61.55	57.21	54.92	51.58	58.80	56.78	59.09	60.50	65.13	63.39	62.97	64.55	69.11	70.10	70.62	71.18	73.76
Number of days of payables	days	39.68	46.27	50.88	53.89	53.46	50.09	34.72	41.74	39.20	39.66	35.19	35.88	40.78	41.69	42.77	55.60	55.25	53.98	55.58	58.33

To analyze Itron Inc.'s activity ratios, we will focus on three key ratios: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- DOH measures how many days, on average, inventory is held before being sold.
- Generally, a lower DOH indicates efficient inventory management.
- Itron's DOH has shown an increasing trend over the past quarters, reaching 70.94 days in Q4 2023 from 44.78 days in Q1 2022.
- The rising DOH suggests a potential inefficiency in managing inventory levels, leading to excess inventory possibly tying up capital.

2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days required to collect revenue after a sale is made.
- A lower DSO indicates faster collection of receivables and efficient credit management.
- Itron's DSO has fluctuated over the quarters, with the highest value recorded in Q4 2023 at 51.02 days.
- The trend shows some improvement compared to Q2 and Q3 2023, but the current DSO still remains higher compared to the previous years.

3. Number of Days of Payables:
- This ratio indicates the average number of days taken by Itron to pay its suppliers.
- A higher number of days of payables can suggest favorable credit terms or potential liquidity constraints.
- Itron's number of days of payables has fluctuated over the quarters, with Q2 2023 showing the highest value at 64.33 days.
- The trend in payables days indicates some variability in the company's payment practices, potentially affecting relationships with suppliers.

Overall, the analysis of Itron Inc.'s activity ratios suggests a need for closer monitoring and potential improvements in inventory management efficiency, accounts receivable collection, and payment practices to enhance overall working capital management and operational performance.

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	16.83	15.87	14.47	13.27	12.77	12.77	12.20	11.97	11.76	10.45	10.33	10.27	10.25	10.89	10.75	10.84	10.56	10.73	10.47	10.41
Total asset turnover	0.83	0.82	0.77	0.74	0.75	0.76	0.80	0.78	0.80	0.82	0.81	0.70	0.82	0.74	0.77	0.80	0.91	0.90	0.88	0.87

The fixed asset turnover ratio for Itron Inc. has been showing a consistent upward trend over the past eight quarters, indicating that the company is generating more revenue relative to its investment in fixed assets. This improvement suggests efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has been fluctuating slightly but has generally been stable over the same period. This ratio indicates the company's ability to generate sales from all its assets, both fixed and current.

Overall, the fixed asset turnover ratio's increasing trend coupled with the stable total asset turnover ratio indicates that Itron Inc. is effectively managing its assets to generate revenue and optimize its operational efficiency in the long term.