John Bean Technologies Corporation (JBT)

Short-term

Turnover ratios

Inventory turnover for John Bean Technologies Corp has been relatively stable over the past eight quarters, ranging from 4.52 to 6.24 times. This indicates that the company is efficiently managing its inventory levels, with a higher turnover generally being preferred as it implies faster sales of inventory relative to the amount held.

Receivables turnover has shown fluctuations but generally remained above 7 times over the same period. This implies that the company is collecting its receivables in a timely manner, with a higher turnover indicating that receivables are being converted into cash more quickly.

Payables turnover has also been fluctuating, varying between 6.33 and 11.08 times. A higher turnover ratio suggests that the company is paying its suppliers more quickly, which can be beneficial in terms of maintaining good supplier relations and potentially taking advantage of early payment discounts.

The working capital turnover has shown significant variability, ranging from 2.70 to 10.59 times. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher turnover indicates better utilization of working capital, which can be a positive sign of operational efficiency.

Overall, the activity ratios show that John Bean Technologies Corp is effectively managing its inventory, receivables, payables, and working capital to support its operational activities and generate sales revenue.

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Average number of days

Days of Inventory on Hand (DOH):

- The Days of Inventory on Hand (DOH) for John Bean Technologies Corp has fluctuated over the past eight quarters, ranging from a low of 58.48 days in Q2 2023 to a high of 85.95 days in Q3 2022.
- Generally, a lower DOH indicates that the company is managing its inventory efficiently, while a higher DOH suggests potential issues with inventory management.
- Q2 and Q3 of 2023 showed significant improvements in inventory management compared to the previous quarters, with a notable decrease in DOH.

Days of Sales Outstanding (DSO):

- The Days of Sales Outstanding (DSO) has also varied for John Bean Technologies Corp, with a low of 35.50 days in Q3 2023 and a high of 50.39 days in Q4 2022.
- A lower DSO signifies that the company is collecting its receivables faster, which is generally positive for cash flow and working capital management.
- Overall, there has been some fluctuation in DSO over the quarters, indicating varying efficiencies in the company's credit and collection processes.

Number of Days of Payables:

- The Number of Days of Payables for John Bean Technologies Corp has shown some variability, with a low of 32.93 days in Q3 2023 and a high of 57.62 days in Q2 2022.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which can have implications for relationships with vendors and cash flow management.
- Q3 2023 saw a notable decrease in the number of days of payables, indicating potentially improved vendor payment practices.

In conclusion, analyzing these activity ratios provides insights into how John Bean Technologies Corp is managing its inventory, receivables, and payables over the evaluated period. The fluctuations in these ratios suggest that the company's working capital management practices have been dynamic and evolving in response to changing business conditions.

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Long-term

John Bean Technologies Corp's long-term activity ratios provide insights into how effectively the company is utilizing its assets to generate revenue.

Fixed asset turnover ratio measures how efficiently the company is using its fixed assets to generate sales. The trend shows an increasing pattern over the quarters, indicating that the company is improving its utilization of fixed assets to generate revenue. This may suggest better operational efficiency and effective asset management.

Total asset turnover ratio measures the company's ability to generate sales from its total assets. The decreasing trend in total asset turnover ratio suggests that the company is becoming less efficient in generating sales from its total assets over the quarters. It could indicate that the company is not generating enough sales relative to its total asset base, which may require further investigation into the company's operational efficiency and asset utilization.

Overall, while the company seems to be effectively utilizing its fixed assets to generate revenue based on the fixed asset turnover ratio, there is a need for further analysis and monitoring of the total asset turnover ratio to ensure optimal utilization of all assets in generating sales.