Matthews International Corporation (MATW)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.32 | 5.09 | 5.15 | 5.08 | 5.00 | 4.79 | 4.92 | 5.06 | 5.50 | 5.82 | 6.05 | 6.10 | 5.97 | 5.60 | 5.57 | 5.68 | 5.71 | 5.42 | 5.30 | 5.37 |
| Receivables turnover | 8.72 | 9.49 | 9.72 | 8.70 | 9.06 | 9.87 | 8.36 | 8.00 | 7.97 | 8.41 | 7.84 | 5.49 | 5.39 | 5.50 | 5.34 | 4.98 | 5.08 | 5.50 | 5.13 | 4.88 |
| Payables turnover | 11.68 | 11.14 | 12.17 | 13.46 | 11.40 | 11.51 | 10.63 | 12.28 | 10.22 | 11.86 | 10.60 | 10.49 | 10.02 | 10.74 | 11.63 | 13.72 | 12.07 | 13.05 | 11.06 | 15.87 |
| Working capital turnover | 9.08 | 7.15 | 6.34 | 6.09 | 7.42 | 7.76 | 8.08 | 6.65 | 8.11 | 6.04 | 6.40 | 4.99 | 6.19 | 5.60 | 5.67 | 5.87 | 5.79 | 5.64 | 4.98 | 4.91 |
Matthews International Corporation's inventory turnover ratio has been relatively stable over the past few quarters, ranging between 5.00 to 6.10 times. This indicates that the company is efficiently managing its inventory levels, with a higher turnover reflecting effective sales and a lower risk of excess inventory.
The receivables turnover ratio has varied more significantly, ranging from 5.39 to 9.87 times. A higher turnover implies that Matthews International is collecting its accounts receivable more quickly, which is positive for cash flow and liquidity. However, the fluctuation in this ratio could also indicate varying credit policies or customer payment behavior.
In terms of payables turnover, Matthews International has shown a consistent pattern of paying its suppliers. The ratio has ranged between 10.02 and 15.87 times, reflecting the number of times the company pays off its trade payables within a given period. A higher turnover suggests efficient management of payables and potentially strong supplier relationships.
The working capital turnover ratio has also fluctuated over the quarters, with values ranging from 4.91 to 9.08 times. This ratio provides insight into how effectively Matthews International is utilizing its working capital to generate sales. A higher turnover indicates more efficient use of working capital resources.
Overall, by analyzing these activity ratios, it can be observed that Matthews International Corporation is effectively managing its inventory, accounts receivable, accounts payable, and working capital to support its operational activities and financial health.
Average number of days
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 68.58 | 71.69 | 70.92 | 71.81 | 72.93 | 76.25 | 74.15 | 72.08 | 66.35 | 62.71 | 60.34 | 59.87 | 61.12 | 65.12 | 65.55 | 64.23 | 63.88 | 67.40 | 68.83 | 68.00 |
| Days of sales outstanding (DSO) | days | 41.87 | 38.47 | 37.55 | 41.98 | 40.27 | 36.99 | 43.64 | 45.62 | 45.77 | 43.43 | 46.55 | 66.52 | 67.67 | 66.38 | 68.38 | 73.34 | 71.91 | 66.37 | 71.14 | 74.74 |
| Number of days of payables | days | 31.24 | 32.76 | 30.00 | 27.11 | 32.02 | 31.72 | 34.35 | 29.73 | 35.72 | 30.78 | 34.42 | 34.80 | 36.44 | 33.98 | 31.39 | 26.60 | 30.25 | 27.96 | 33.01 | 23.00 |
The Days of Inventory on Hand (DOH) for Matthews International Corporation have shown a fluctuating trend over the recent quarters, ranging from around 60 to 76 days. This indicates the number of days it takes the company to convert its inventory into sales. A decreasing trend in DOH is generally favorable as it suggests efficient inventory management, with the company able to sell its products more quickly.
The Days of Sales Outstanding (DSO) have also been variable, ranging from approximately 36 to 73 days. DSO reflects how long it takes the company to collect its accounts receivable. A decreasing DSO is preferable as it indicates the company is collecting payments more promptly, improving cash flow.
The Number of Days of Payables has displayed some volatility, ranging from around 26 to 36 days. This ratio illustrates how quickly a company pays its suppliers. A higher number of days of payables signifies that the company is taking longer to settle its bills, potentially indicating favorable terms with suppliers.
Overall, the analysis of activity ratios for Matthews International Corporation suggests that there have been fluctuations in inventory management, accounts receivable collection, and accounts payable payment patterns. Continuous monitoring and analysis are necessary to ensure efficient working capital management and overall operational effectiveness.
Long-term
| 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 | Dec 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.10 | 6.70 | 6.74 | 6.68 | 7.25 | 6.79 | 6.74 | 6.70 | 7.18 | 8.34 | 8.22 | 7.76 | 7.91 | 7.12 | 6.84 | 6.43 | 6.33 | 6.46 | 6.49 | 6.42 |
| Total asset turnover | 0.98 | 0.98 | 0.99 | 0.99 | 1.00 | 0.99 | 0.95 | 0.93 | 0.94 | 0.92 | 0.90 | 0.84 | 0.82 | 0.79 | 0.76 | 0.73 | 0.72 | 0.72 | 0.69 | 0.67 |
The long-term activity ratios of Matthews International Corporation show the efficiency of the company in utilizing its assets to generate sales. The fixed asset turnover ratio has shown some fluctuations over the periods, ranging from 6.42 to 8.34. This ratio indicates that, on average, the company generated revenues between approximately 6.42 to 8.34 times the value of its fixed assets during the periods analyzed.
On the other hand, the total asset turnover ratio has also shown variability, with values ranging from 0.67 to 1.00. This ratio represents the company's ability to generate sales in relation to its total assets. Matthews International Corporation has, on average, generated sales equivalent to approximately 0.67 to 1.00 times the value of its total assets during the periods examined.
Overall, the fluctuations in these ratios suggest some changes in the company's operational efficiency and asset management effectiveness over time. It is essential for investors and analysts to monitor these ratios to understand how efficiently Matthews International Corporation is utilizing its assets to generate revenue.