Knowles Cor (KN)
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 | 3.51 | 3.76 | 2.36 | 2.09 | 3.07 | 2.04 | 2.23 | 2.07 | 2.72 | 2.42 | 2.64 | 2.85 | 3.32 | 3.38 | 3.21 | 3.57 | 3.77 | 3.02 | 3.05 | 3.23 |
| Receivables turnover | 6.53 | 7.18 | 5.32 | 5.30 | 4.73 | 5.23 | 5.87 | 6.46 | 5.68 | 6.23 | 6.70 | 6.07 | 5.92 | 6.76 | 7.28 | 6.99 | 5.82 | 6.03 | 7.73 | 6.95 |
| Payables turnover | 7.09 | 13.73 | 8.53 | 6.28 | 10.88 | 7.18 | 8.83 | 6.12 | 11.12 | 8.09 | 7.73 | 6.20 | 5.60 | 7.22 | 7.17 | 6.28 | 6.98 | 7.02 | 6.61 | 6.55 |
| Working capital turnover | 4.19 | 3.03 | 2.97 | 2.33 | 2.42 | 2.22 | 2.59 | 2.75 | 2.90 | 3.26 | 3.73 | 3.61 | 4.05 | 7.19 | 10.21 | 5.41 | 6.25 | 2.54 | 3.72 | 2.70 |
Knowles Cor's activity ratios show the efficiency of the company in managing its inventory, receivables, payables, and working capital.
1. Inventory turnover indicates how many times the company sells and replaces its inventory within a given period. Knowles Cor's inventory turnover has been fluctuating over time, ranging from a low of 2.07 to a high of 3.77. The company's inventory turnover has been showing a declining trend in recent periods, suggesting potential issues with managing inventory levels efficiently.
2. Receivables turnover measures how efficiently the company collects outstanding payments from its customers. Knowles Cor's receivables turnover has been relatively consistent, with values ranging from 4.73 to 7.73. The company's ability to collect receivables has been stable, although there was a slight decrease in turnover towards the end of the period.
3. Payables turnover reflects how quickly the company pays its suppliers. Knowles Cor's payables turnover has shown significant fluctuations, ranging from 5.60 to 13.73. The company's payables turnover has been erratic, with periods of both quick and slow payment to suppliers, which may affect vendor relationships.
4. Working capital turnover indicates how efficiently the company uses its working capital to generate sales. Knowles Cor's working capital turnover has varied from 2.22 to 10.21, showing fluctuations in the company's ability to convert working capital into revenue. The company experienced a peak in working capital turnover in June 2021 but has since shown a downward trend, indicating potential challenges in utilizing working capital effectively.
In summary, Knowles Cor's activity ratios reveal mixed performance in managing its operational processes. The company should focus on improving inventory management, maintaining stable receivables turnover, managing payables effectively, and optimizing working capital utilization to enhance operational efficiency.
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 | 103.91 | 97.06 | 154.98 | 174.44 | 118.71 | 178.95 | 163.61 | 176.00 | 134.41 | 150.52 | 138.41 | 128.26 | 109.87 | 107.96 | 113.80 | 102.18 | 96.75 | 120.76 | 119.68 | 113.04 |
| Days of sales outstanding (DSO) | days | 55.86 | 50.84 | 68.58 | 68.92 | 77.09 | 69.78 | 62.19 | 56.48 | 64.29 | 58.58 | 54.45 | 60.14 | 61.64 | 54.02 | 50.17 | 52.19 | 62.75 | 60.53 | 47.23 | 52.52 |
| Number of days of payables | days | 51.51 | 26.58 | 42.80 | 58.15 | 33.56 | 50.84 | 41.35 | 59.65 | 32.83 | 45.09 | 47.21 | 58.91 | 65.23 | 50.55 | 50.94 | 58.16 | 52.28 | 51.97 | 55.24 | 55.75 |
The Days of Inventory on Hand (DOH) for Knowles Cor has shown fluctuations over the years, ranging from a low of 96.75 days to a high of 178.95 days. The company's inventory turnover cycle has been inconsistent, demonstrating challenges in managing inventory levels efficiently.
In terms of Days of Sales Outstanding (DSO), the company’s collection period has varied from a low of 47.23 days to a high of 77.09 days. This indicates that Knowles Cor has experienced fluctuations in the time it takes to collect payments from customers, which can impact cash flow management.
On the other hand, the Number of Days of Payables measure has shown some stability but with notable decreases in the payables cycle. The company has reduced its payables period from 55.75 days to 26.58 days, indicating a more aggressive approach to managing supplier payments.
Overall, the activity ratios analysis suggests that Knowles Cor may need to focus on improving its inventory management efficiency and maintaining a balance between collection periods and payables periods to optimize its working capital and cash flow position.
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 | 5.27 | 5.65 | 4.54 | 4.17 | 4.48 | 4.30 | 4.62 | 4.46 | 4.73 | 4.88 | 4.70 | 4.53 | 4.32 | 4.60 | 4.47 | 4.37 | 3.99 | 4.00 | 4.07 | 4.22 |
| Total asset turnover | 0.61 | 0.65 | 0.61 | 0.47 | 0.44 | 0.53 | 0.59 | 0.59 | 0.65 | 0.56 | 0.59 | 0.51 | 0.50 | 0.51 | 0.51 | 0.48 | 0.46 | 0.45 | 0.47 | 0.49 |
Based on the provided data for Knowles Cor's long-term activity ratios, let's analyze the Fixed Asset Turnover and Total Asset Turnover ratios.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales.
- Knowles Cor's Fixed Asset Turnover ratio has been showing a generally increasing trend over the years, starting at 4.22 in March 2020 and reaching a peak of 5.65 in September 2024.
- The company's ability to generate sales from its fixed assets improved steadily, suggesting effective management of its long-term assets during the period analyzed.
- However, there was some fluctuation in the ratio, indicating potential changes in the company's asset management strategies or sales growth patterns.
2. Total Asset Turnover:
- The Total Asset Turnover ratio indicates how efficiently the company is using all its assets to generate revenue.
- Knowles Cor's Total Asset Turnover ratio varied over the period, with fluctuations from 0.44 in December 2023 to 0.65 in September 2022 and December 2024.
- The ratio generally increased over the years, suggesting improved efficiency in generating revenue from its total assets.
- The increase in the Total Asset Turnover ratio could be attributed to effective management of both fixed and current assets in generating sales.
In conclusion, Knowles Cor's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, demonstrate an overall positive trend and improvements in asset productivity and revenue generation efficiency over the analyzed period.