Koppers Holdings Inc (KOP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.13 | 4.52 | 4.60 | 4.28 | 4.42 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 5.90 | 5.77 | 6.33 | 4.90 | 6.13 |
Based on the provided data for Koppers Holdings Inc, let's analyze the activity ratios:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory by indicating the number of times the inventory is sold and replaced during a specific period.
- Koppers Holdings Inc's inventory turnover has been relatively stable over the years, ranging from 4.13 to 4.60.
- A higher inventory turnover generally indicates more efficient inventory management, as the company is selling and restocking inventory more frequently.
2. Receivables Turnover:
- Receivables turnover ratio reflects how efficiently a company collects its accounts receivable during a specific period.
- The data provided shows that receivables turnover figures are not available (marked as "—") for all years, suggesting that it may be challenging to assess the effectiveness of the company's accounts receivable collection process based on the given information.
3. Payables Turnover:
- The payables turnover ratio measures how efficiently a company pays its suppliers or trade payables during a specific period.
- Similar to receivables turnover, the data indicates that payables turnover figures are not available (marked as "—") for all years, making it difficult to evaluate the company's payment practices based on the information provided.
4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales.
- Koppers Holdings Inc's working capital turnover has shown fluctuations, ranging from 4.90 to 6.33.
- A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to generate revenue.
Overall, while the inventory turnover and working capital turnover ratios provide insight into Koppers Holdings Inc's efficiency in managing inventory and working capital, the lack of data for receivables turnover and payables turnover hinders a comprehensive analysis of the company's overall activity and liquidity management.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 88.46 | 80.80 | 79.36 | 85.19 | 82.50 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Koppers Holdings Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- In 2020, Koppers Holdings Inc had 82.50 days of inventory on hand, which increased to 85.19 days in 2021 before decreasing to 79.36 days in 2022. Subsequently, the DOH increased to 80.80 days in 2023 and further to 88.46 days in 2024.
- Overall, there has been some volatility in the DOH over the years, with fluctuating levels indicating changes in inventory management efficiency. The increase in 2024 may suggest a build-up of inventory or slower inventory turnover.
2. Days of Sales Outstanding (DSO):
- Unfortunately, data regarding the Days of Sales Outstanding (DSO) was not provided for Koppers Holdings Inc for any of the years under review.
- DSO is a crucial metric that helps assess the average collection period for accounts receivable. Without this data, we cannot evaluate the effectiveness of Koppers Holdings Inc in collecting payments from customers.
3. Number of Days of Payables:
- Similarly, the Number of Days of Payables data was not available for Koppers Holdings Inc for any of the years in the dataset.
- Payables turnover is essential for assessing how long the company takes to pay its suppliers. Without this information, it is challenging to evaluate the company's payment practices and liquidity management.
In conclusion, the analysis of Koppers Holdings Inc's activity ratios based on the provided data shows fluctuations in the Days of Inventory on Hand, indicating changes in inventory management, while information on Days of Sales Outstanding and the Number of Days of Payables was not available, limiting a comprehensive evaluation of the company's efficiency in managing receivables and payables.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 3.08 | 3.43 | 4.08 |
| Total asset turnover | 1.11 | 1.17 | 1.16 | 1.01 | 1.04 |
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. Koppers Holdings Inc's fixed asset turnover has decreased from 4.08 in 2020 to 3.43 in 2021 and further to 3.08 in 2022. This decline indicates that the company may be utilizing its fixed assets less efficiently over time, as it generates fewer revenues relative to its investment in fixed assets.
On the other hand, the total asset turnover ratio evaluates the company's ability to generate sales from its total assets. Koppers Holdings Inc's total asset turnover was stable at around 1.01 in 2021, increased to 1.16 in 2022, and then slightly decreased to 1.11 in 2024. This suggests that the company improved its ability to generate revenue from its total assets between 2021 and 2022 but experienced a slight dip in 2024.
Overall, while Koppers Holdings Inc's efficiency in generating revenue from fixed assets has declined, its ability to generate revenue from total assets has shown some improvement before a slight decrease. It is essential for the company to closely monitor these ratios to ensure efficient utilization of its assets in the long term.