Littelfuse Inc (LFUS)
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 | 3.78 | 3.81 | 3.54 | 3.27 | 3.50 | 3.48 | 3.54 | 3.63 | 3.65 | 3.33 | 3.37 | 3.38 | 3.54 | 3.77 | 3.64 | 4.06 | 4.04 | 3.98 | 3.94 | 4.01 |
| Receivables turnover | 8.08 | 7.38 | 7.26 | — | 8.03 | — | — | — | 7.43 | 5.85 | 5.64 | 5.61 | 6.18 | 5.94 | 7.19 | 6.85 | 7.32 | 6.83 | 6.62 | 7.06 |
| Payables turnover | 10.33 | 11.04 | 10.75 | 9.56 | 9.19 | 8.51 | 8.00 | 8.04 | 7.33 | 5.35 | 5.36 | 5.54 | 6.26 | 7.61 | 7.93 | 8.65 | 8.17 | 8.92 | 8.14 | 8.12 |
| Working capital turnover | 2.24 | 2.48 | 2.61 | 2.79 | 2.62 | 2.43 | 1.73 | 2.31 | 2.45 | 1.88 | 1.88 | 1.79 | 1.53 | 1.51 | 1.47 | 1.61 | 1.90 | 2.04 | 2.10 | 2.21 |
Littelfuse Inc's activity ratios provide insights into the efficiency of the company's operations in managing its assets and liabilities.
1. Inventory turnover: Littelfuse Inc's inventory turnover ratio has been relatively consistent over the past five quarters, ranging between 3.27 and 4.06. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales.
2. Receivables turnover: The receivables turnover ratio reflects Littelfuse Inc's ability to collect cash from its customers. The ratio has shown some variability, with values ranging from 5.61 to 8.08. A higher turnover ratio implies faster collection of receivables, which is generally positive for cash flow management.
3. Payables turnover: Littelfuse Inc's payables turnover ratio has been relatively stable, with values fluctuating between 5.35 and 11.04. A higher turnover ratio suggests that the company is paying its suppliers more quickly, which could impact its cash flow and relationships with suppliers.
4. Working capital turnover: The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales. Littelfuse Inc's ratio has varied over the quarters, ranging from 1.47 to 2.79. A higher ratio indicates that the company is generating more sales with less working capital, which is generally a positive sign of efficiency.
Overall, Littelfuse Inc's activity ratios suggest that the company is effectively managing its inventory, receivables, payables, and working capital to support its operations and drive sales. Monitoring these ratios over time can help identify trends and areas for improvement in the company's operational efficiency.
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 | 96.65 | 95.80 | 103.24 | 111.71 | 104.26 | 104.82 | 102.97 | 100.50 | 99.90 | 109.71 | 108.16 | 108.11 | 102.99 | 96.77 | 100.39 | 89.82 | 90.39 | 91.64 | 92.70 | 91.08 |
| Days of sales outstanding (DSO) | days | 45.19 | 49.43 | 50.29 | — | 45.43 | — | — | — | 49.14 | 62.40 | 64.75 | 65.02 | 59.04 | 61.48 | 50.78 | 53.29 | 49.85 | 53.47 | 55.15 | 51.67 |
| Number of days of payables | days | 35.34 | 33.06 | 33.95 | 38.18 | 39.70 | 42.91 | 45.60 | 45.42 | 49.77 | 68.18 | 68.11 | 65.85 | 58.28 | 47.99 | 46.05 | 42.21 | 44.65 | 40.93 | 44.86 | 44.93 |
Littelfuse Inc's activity ratios provide insights into the efficiency of its inventory management, accounts receivable collection, and accounts payable payment processes.
1. Days of Inventory on Hand (DOH):
Littelfuse's inventory turnover has shown fluctuations over the periods provided, ranging from a low of 89.82 days to a high of 111.71 days. A decreasing trend in DOH is generally preferred as it indicates that inventory is moving more quickly, freeing up cash and reducing the risk of obsolescence. However, Littelfuse's DOH has been volatile, suggesting potential challenges in inventory management efficiency.
2. Days of Sales Outstanding (DSO):
The DSO ratio reflects how efficiently Littelfuse is collecting payments from its customers. The company experienced fluctuations in DSO over the periods provided, ranging from a low of 45.19 days to a high of 65.02 days. A decreasing trend in DSO is generally preferred as it indicates faster collections. Littelfuse's DSO has been inconsistent, with values sometimes increasing, indicating potential issues with accounts receivable management and credit policies.
3. Number of Days of Payables:
The days of payables metric shows how long it takes for Littelfuse to pay its suppliers. The company's payment period has varied, ranging from a low of 33.06 days to a high of 68.18 days. A longer payment period can be advantageous as it allows the company to hold onto cash longer. However, an extremely long payment period may strain supplier relationships. Littelfuse's days of payables have shown volatility, suggesting variability in payment practices.
Overall, Littelfuse should aim for a balance in its activity ratios to optimize working capital management. The company may need to focus on improving inventory turnover, receivables collection, and payables management to enhance operational efficiency and strengthen its financial position.
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 | 4.70 | 5.05 | 5.12 | 5.00 | 5.12 | 5.20 | 5.24 | 4.98 | 4.67 | 5.23 | 5.01 | 4.50 | 4.18 | 4.05 | 3.99 | 4.25 | 4.30 | 4.69 | 4.80 | 4.91 |
| Total asset turnover | 0.58 | 0.60 | 0.62 | 0.62 | 0.63 | 0.63 | 0.64 | 0.69 | 0.65 | 0.63 | 0.60 | 0.56 | 0.52 | 0.52 | 0.51 | 0.55 | 0.58 | 0.61 | 0.62 | 0.64 |
Littelfuse Inc's fixed asset turnover ratio has shown fluctuation over the periods provided, ranging from a low of 4.05 to a high of 5.24. This ratio measures how efficiently the company is generating sales from its investment in fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio indicates that the company is using its fixed assets effectively to generate revenue.
On the other hand, Littelfuse Inc's total asset turnover ratio has also varied between 0.51 and 0.69 across the periods. This ratio reflects the company's ability to generate sales from all its assets, including both fixed and current assets. A higher total asset turnover ratio implies that the company is efficiently utilizing all its assets to generate sales.
Comparing the two ratios, we can see that Littelfuse Inc has generally maintained a higher fixed asset turnover ratio compared to its total asset turnover ratio. This suggests that the company is relatively more efficient in generating sales from its fixed assets compared to its total assets. However, it's essential to monitor these ratios over time to assess any significant changes in asset utilization efficiency and operational effectiveness.