JBTMarel Corp (JBTM)

Short-term

Turnover ratios

The activity ratios of JBTMarel Corp indicate various aspects of operational efficiency over the specified periods.

Inventory Turnover:
The inventory turnover ratio experienced fluctuations during the analyzed period. Starting at 5.76 times as of September 30, 2020, it increased to a peak of approximately 6.05 by December 31, 2020, signifying efficient inventory management. The ratio remained relatively stable around 5.74 to 5.95 through 2021, indicating consistent inventory utilization. However, a decline is evident in 2022, with the ratio falling to 4.30 by June 30, 2022, and further decreasing to a low of 3.46 in March 2023. Post this dip, the ratio showed signs of recovery, rising back to over 5.41 in September 2023 before fluctuating and ending at approximately 2.28 in March 2025. The significant drop towards early 2025 suggests possible inventory accumulation or challenges in inventory turnover efficiency.

Receivables Turnover:
Receivables turnover ratio initially hovered around 6.01 in September 2020, with minor variations, reflecting relatively stable collection practices. Notably, there was a decrease to 4.64 by March 2023, possibly indicating slower collections or increased credit extended. Conversely, the ratio improved substantially in 2023, reaching around 7.00 in September before declining again to 4.00 by March 2025. The fluctuations suggest periods of tighter credit policies interlinked with potential delays in receivables collection.

Payables Turnover:
The payables turnover ratio demonstrates periods of variability, beginning at 8.33 in September 2020, peaking at 10.12 in September 2023, and decreasing to 4.96 in March 2025. The upward trend from 2022 onwards indicates an acceleration in paying suppliers, potentially reflecting improvements in cash flow management or shifts in payment strategies. The notable decline in 2025 implies a lengthening of payment periods or cash flow constraints.

Working Capital Turnover:
This ratio illustrates how effectively the company utilizes its working capital. Initially, the ratio was high at 9.17 as of September 2020, peaking at 13.19 in March 2021, indicating efficient use of working capital relative to sales. Subsequently, a downward trend emerges, reaching a low of 1.29 in December 2023, highlighting reduced efficiency, possibly due to increased working capital levels or decreased sales efficiency. An uptick to 7.14 in March 2025 suggests a rebound in working capital utilization, though data for subsequent periods is unavailable.

Summary:
Overall, JBTMarel Corp’s activity ratios show a pattern of initial stability with variations that reflect operational adjustments over time. The inventory turnover decline indicates challenges in managing inventory efficiently in recent periods, while fluctuations in receivables and payables turnover ratios may mirror changes in credit and payment policies. The working capital turnover points to periods of operational strain followed by recovery, emphasizing the dynamic nature of the company’s asset management efficiency.

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Average number of days

The analysis of JBTMarel Corp's activity ratios over the specified period demonstrates notable fluctuations that reflect the company's operational efficiency and liquidity management trends.

Days of Inventory on Hand (DOH):
The DOH ratio indicates the average number of days inventory remains unsold. From September 2020 through December 2021, the DOH remained relatively stable, fluctuating between approximately 60 to 65 days, suggesting consistent inventory turnover during this period. However, starting in March 2022, there was a significant upward trend, with DOH increasing sharply to over 74 days and reaching a peak of approximately 105.58 days by March 2023. Mid-2023 saw some stabilization with a decrease to around 70 days, but the ratio then increased again, reaching approximately 89.84 days by June 2024 before slightly declining to about 87.34 days in September 2024. Post-September 2024, the DOH ratio exhibits further variability, with a notable spike to 160.05 days in March 2025—indicative of substantial inventory accumulation—subsequently easing to approximately 138.63 days by June 2025. These variations suggest periods where inventory management may have been less efficient, potentially due to demand fluctuations, supply chain disruptions, or strategic stockpiling.

Days of Sales Outstanding (DSO):
The DSO reflects the average number of days taken to collect receivables. Between September 2020 and December 2021, DSO remained within the range of roughly 60 to 65 days, indicating stable and predictable receivables collection periods. A notable increase occurred during 2022, peaking at around 77.60 days in September, implying delays in receivables collection. However, by the end of 2022, the DSO declined substantially to approximately 52.09 days, suggesting improved collection efficiency. In 2023, the DSO fluctuated, reaching 78.68 days in March but generally trending downward to about 52.15 days by September, with some variance thereafter. The ratios point to periods of collection challenges interspersed with improvements, possibly influenced by client credit policies, economic conditions, or changes in sales mix.

Number of Days of Payables:
This ratio measures the average length of time JBTMarel Corp takes to pay its suppliers. From September 2020 through December 2022, the payables period showed an increasing trend, peaking at approximately 66.41 days in September 2022, which indicates extended payment terms possibly used as a liquidity management tool. During 2023, the payables period generally decreased, reaching approximately 36.08 days in September 2023, suggesting a shift towards more timely payments. In the subsequent quarters, the payables days slightly rose again to roughly 73.62 days by March 2025, reflecting potentially longer credit terms negotiated with suppliers or strategic payment policies. The variations in payables cycles may indicate adjustments to working capital management strategies in response to operational or financial considerations.

Summary:
Overall, JBTMarel Corp's activity ratios reveal periods of operational stress, notably in inventory management, evident from the substantial increases in DOH, particularly in early 2025. The receivables collection efficiency has fluctuated but shows signs of improvement toward late 2023. The payables data suggest flexible management of supplier payments, with periods of extended and shortened payment durations. These trends collectively suggest that while the company has faced evolving operational challenges, it has also adapted its working capital strategies, which are critical for maintaining liquidity and ensuring operational continuity.

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Long-term

The long-term activity ratios for JBTMarel Corp, primarily encompassing fixed asset turnover and total asset turnover, reveal a notable trend over the analyzed period from September 2020 to June 2025.

The fixed asset turnover ratio consistently remains unreported throughout the period, suggesting either the absence of significant fixed assets on the balance sheet or a lack of relevant data to assess how effectively the company utilizes its fixed assets to generate sales.

In contrast, the total asset turnover ratio exhibits a declining trend over time. Beginning at 1.01 on September 30, 2020, the ratio gradually decreases, reaching approximately 0.33 by June 2025. This decline indicates a diminishing efficiency in asset utilization to generate revenue. Specifically, each dollar of total assets generated roughly 1.01 dollars in sales at the start of the period, but this figure declines substantially, suggesting that the company's assets are becoming less effective in driving sales over time.

The significant decrease in the total asset turnover ratio, especially evident from December 2022 onward, may reflect various operational or strategic shifts. Potential explanations include increased asset base without proportional revenue growth, asset impairments, changes in business model, or market conditions affecting revenue generation.

Overall, the data indicates that while the company maintained reasonable asset efficiency earlier in the period, recent years have seen a deterioration in asset productivity. This trend warrants further investigation into underlying causes, such as asset management practices, capital investment decisions, or shifts in revenue streams, to better understand the factors impacting the company's long-term operational efficiency.