Knowles Cor (KN)

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	2.22	2.29	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	3.71	3.38	3.23	3.15
Receivables turnover	5.23	5.79	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	5.36	5.20	6.22	6.35
Payables turnover	8.49	8.04	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	6.00	6.91	7.90	7.00
Working capital turnover	2.68	2.46	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	3.61	3.31	3.59	3.81

Knowles Corp's inventory turnover has been relatively stable over the past eight quarters, ranging from 2.05 to 2.69, indicating the company's efficiency in managing its inventory. The receivables turnover has shown some fluctuation, but overall, it has been within a reasonable range of 5.23 to 6.46, suggesting the company is collecting its receivables in a timely manner.

On the other hand, the payables turnover has varied significantly, with the lowest turnover of 6.06 in Q1 2023 and the highest of 11.02 in Q4 2022. This indicates potential fluctuations in the company's payment practices with suppliers.

The working capital turnover has shown a declining trend from 3.61 in Q1 2022 to 2.68 in Q4 2023. This could indicate a decrease in the company's efficiency in generating sales from its working capital.

Overall, Knowles Corp's activity ratios suggest a generally efficient management of inventory and receivables, albeit with some variability in payables turnover and a slight decline in working capital turnover over the quarters 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	164.53	159.73	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	98.43	108.00	113.16	115.87
Days of sales outstanding (DSO)	days	69.79	62.99	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	68.15	70.17	58.66	57.51
Number of days of payables	days	42.98	45.38	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	60.88	52.79	46.20	52.15

To analyze Knowles Corp's activity ratios, we will focus on the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables. These ratios provide insights into the efficiency of the company's inventory management, accounts receivable collection, and accounts payable payment processes.

1. Days of Inventory on Hand (DOH):
- The trend shows an increase in DOH from Q1 to Q4 in 2023, which indicates that Knowles Corp is taking longer to turn its inventory into sales.
- Compared to the previous year, the DOH has increased significantly, indicating potential issues in managing inventory levels efficiently.
- The company may need to evaluate its inventory management practices to reduce the holding period and optimize working capital utilization.

2. Days of Sales Outstanding (DSO):
- The DSO fluctuates over the quarters in 2023, with a peak in Q1 and a subsequent decrease in Q2 and Q3, followed by a slight increase in Q4.
- Generally, a lower DSO implies quicker collection of accounts receivable, which is positive for cash flow management.
- Despite the fluctuations, the company has maintained a reasonable DSO level, indicating effective credit and collection policies.

3. Number of Days of Payables:
- The number of days of payables has shown variability throughout the quarters in 2023, with a significant decrease in Q1 and an increase in Q2 and Q3, followed by a decrease in Q4.
- The company seems to be extending its payment period in Q1, which could indicate a deliberate strategy to manage cash flow or negotiate better payment terms with suppliers.
- The variability in payables days may be a reflection of the company's working capital management efforts and relationships with vendors.

In summary, Knowles Corp's activity ratios suggest areas for improvement in inventory management efficiency and the need for consistent monitoring and optimization of accounts receivable and payable cycles to enhance overall working capital 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	4.03	4.77	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	4.14	4.07	3.99	3.83
Total asset turnover	0.48	0.58	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	0.52	0.53	0.53	0.53

The fixed asset turnover ratio of Knowles Corp has been relatively stable, ranging from 4.03 to 4.88 over the past eight quarters. This indicates that the company generates between $4.03 to $4.88 in revenues for every dollar invested in fixed assets. The fluctuations in this ratio suggest that the efficiency of utilizing fixed assets has been consistent, with a slight decrease in the most recent quarter compared to the prior quarters.

On the other hand, the total asset turnover ratio has shown more variability, ranging from 0.48 to 0.65 over the same period. This ratio signifies that for every dollar of total assets, Knowles Corp generated between $0.48 to $0.65 in revenue. The overall trend suggests a slight decrease in the efficiency of total asset utilization in generating revenues, although the ratio has remained relatively stable in the past few quarters.

Both ratios indicate that Knowles Corp has been effectively utilizing its assets to generate revenue, with the fixed asset turnover ratio being more consistent compared to the total asset turnover ratio. Further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of the company's long-term activity performance.