ITT Inc (ITT)

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 3.78 3.76 3.73 3.69 3.87 3.81 3.64 4.00 4.33 4.58 4.50 4.57 4.70 4.48 4.62 5.00 4.93 4.61 4.48 4.72
Receivables turnover 4.86 4.79 4.58 4.57 4.75 4.61 4.68 4.54 4.98 4.98 4.86 4.60 4.88 5.08 5.63 4.90 4.92 4.89 4.62 4.72
Payables turnover 4.98 5.29 5.26 5.27 5.15 5.12 4.66 4.63 5.00 5.54 5.41 5.23 5.53 5.65 6.56 5.91 5.83 5.62 5.43 5.43
Working capital turnover 4.00 4.38 4.82 4.52 4.59 5.61 5.99 4.22 3.48 3.75 3.70 2.36 2.37 2.60 2.97 3.35 3.21 3.43 3.43 3.36

ITT Inc's Inventory turnover has been relatively stable over the past eight quarters, ranging from 3.64 to 4.00. This suggests that the company is efficient in managing its inventory levels, with an average of approximately 3.80 times per year.

The Receivables turnover for the company has also been consistent, with values fluctuating between 4.54 and 4.86. This indicates that ITT Inc collects its receivables approximately 4.70 times per year on average.

In terms of Payables turnover, ITT Inc has shown variability in the past two years, with values ranging from 4.63 to 5.29. The average Payables turnover for the company is around 5.00 times per year, indicating that it pays its suppliers every 73 days on average.

Additionally, the Working Capital turnover for ITT Inc shows some fluctuations, with values ranging from 4.00 to 5.99 over the past eight quarters. On average, the company generates approximately 4.80 times its working capital in revenue annually.

Overall, ITT Inc appears to have moderate to good efficiency levels in managing its inventory, receivables, payables, and working capital activities based on the turnover ratios analyzed.

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 96.53 97.10 97.93 98.96 94.35 95.80 100.28 91.18 84.31 79.73 81.15 79.93 77.60 81.42 79.01 72.94 74.06 79.10 81.53 77.35
Days of sales outstanding (DSO) days 75.07 76.20 79.62 79.92 76.82 79.20 78.00 80.48 73.28 73.34 75.10 79.35 74.76 71.91 64.80 74.43 74.17 74.71 78.94 77.30
Number of days of payables days 73.31 69.00 69.42 69.27 70.88 71.28 78.34 78.79 73.06 65.91 67.49 69.75 66.04 64.64 55.67 61.78 62.66 64.94 67.21 67.24

ITT Inc's activity ratios indicate the efficiency of its operations in managing inventory, collecting receivables, and paying its suppliers.

Over the past eight quarters, the Days of Inventory on Hand (DOH) has fluctuated, ranging from 91.18 days to 100.28 days. This metric suggests that on average, ITT Inc takes roughly 94 to 98 days to sell its inventory, indicating reasonable control over its inventory levels.

Days of Sales Outstanding (DSO) has shown a more stable trend, varying between 75.07 days and 80.48 days. This metric reflects the average collection period for receivables, with ITT Inc taking about 76 to 80 days to collect outstanding payments from customers.

The Number of Days of Payables has also exhibited some fluctuations, with figures ranging from 69.00 days to 78.79 days. This metric reflects the average number of days the company takes to pay its suppliers, showing that ITT Inc typically settles its payables within 69 to 78 days.

In summary, ITT Inc has been effectively managing its inventory, receivables, and payables over the past two years, with some variability in the specific days observed for each activity ratio. Monitoring these ratios can provide insight into the company's operational efficiency and cash flow management.

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 5.85 6.17 5.98 5.79 5.67 5.90 5.66 5.53 5.43 5.64 5.35 5.01 4.72 4.92 5.16 5.50 5.36 5.38 5.19 5.36
Total asset turnover 0.83 0.85 0.81 0.81 0.79 0.79 0.77 0.75 0.78 0.81 0.78 0.60 0.58 0.60 0.63 0.66 0.69 0.69 0.69 0.70

Long-term activity ratios such as fixed asset turnover and total asset turnover provide insight into the efficiency of ITT Inc in generating sales from its assets over time.

Fixed asset turnover measures how effectively the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover indicates that ITT Inc is efficiently using its long-term assets like machinery and equipment to generate sales. The trend in fixed asset turnover for ITT Inc shows consistency with values ranging from 5.53 to 6.17 over the past eight quarters. This indicates a strong and stable performance in utilizing fixed assets to generate revenue.

Total asset turnover, on the other hand, measures how well the company is using all its assets (both fixed and current) to generate sales. A higher total asset turnover implies efficient utilization of all assets to generate revenue. ITT Inc shows a sustained performance in total asset turnover with values varying between 0.75 and 0.85 throughout the quarters under review. This suggests that the company is effectively using its total assets to generate revenue consistently.

In conclusion, based on the analysis of the long-term activity ratios for ITT Inc, the company demonstrates efficiency in utilizing both fixed and total assets to generate sales. The consistent and stable performance in both fixed asset turnover and total asset turnover ratios indicates effective management of assets to drive revenue growth over the quarters.