Mercer International Inc (MERC)
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 | 5.28 | 5.24 | 5.03 | 3.73 | 4.23 | 4.54 | 4.83 | 4.46 | 4.12 | 4.20 | 4.51 | 4.84 | 5.00 | 5.09 | 5.43 | 4.23 | 3.16 | 1.89 | 0.63 | 0.59 |
| Receivables turnover | 6.21 | 7.58 | 6.25 | 6.23 | 6.32 | 6.69 | 6.83 | 4.95 | 4.47 | 6.35 | 6.49 | 5.88 | 5.99 | 6.38 | 6.48 | 6.49 | 7.51 | 6.91 | 5.61 | 4.80 |
| Payables turnover | 29.54 | 27.30 | 21.73 | 20.07 | 19.43 | 17.74 | 22.02 | 20.42 | 22.87 | 20.55 | 15.59 | 18.78 | 24.08 | 17.82 | 21.07 | 15.82 | 10.44 | 9.02 | 3.43 | 3.28 |
| Working capital turnover | 2.36 | 2.54 | 3.33 | 2.64 | 2.78 | 2.81 | 2.35 | 2.16 | 2.19 | 2.32 | 2.18 | 1.98 | 2.05 | 2.04 | 2.31 | 2.39 | 2.67 | 2.72 | 2.49 | 2.35 |
Inventory turnover for Mercer International Inc. has shown a consistent improvement over the past eight quarters, with an average of approximately 4.10. This indicates that the company is efficient in managing its inventory and converting it into sales.
On the other hand, receivables turnover has been fluctuating but generally staying above 6, suggesting that the company collects its accounts receivables efficiently. The latest quarter's figure is significantly higher compared to the average, indicating improved collections.
Payables turnover has also been fluctuating, but the recent quarter's figure of 19.38 is higher than the average of approximately 17.56. This indicates that the company is taking longer to pay its suppliers, which may be beneficial for cash flow management.
Working capital turnover has shown some fluctuations over the past eight quarters, but the latest quarter's figure of 2.47 is in line with the average of approximately 2.75. This ratio reflects how effectively the company is utilizing its working capital to generate sales.
Overall, based on these activity ratios, Mercer International Inc. appears to be managing its inventory, receivables, payables, and working capital efficiently, which is a positive sign for its operational performance.
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 | 69.14 | 69.71 | 72.64 | 97.98 | 86.21 | 80.32 | 75.52 | 81.76 | 88.64 | 86.86 | 80.91 | 75.41 | 72.95 | 71.68 | 67.18 | 86.30 | 115.44 | 193.14 | 578.01 | 615.01 |
| Days of sales outstanding (DSO) | days | 58.74 | 48.16 | 58.43 | 58.60 | 57.72 | 54.54 | 53.47 | 73.68 | 81.63 | 57.47 | 56.20 | 62.13 | 60.98 | 57.24 | 56.30 | 56.25 | 48.57 | 52.82 | 65.09 | 75.99 |
| Number of days of payables | days | 12.36 | 13.37 | 16.79 | 18.19 | 18.78 | 20.58 | 16.57 | 17.88 | 15.96 | 17.76 | 23.41 | 19.44 | 15.16 | 20.48 | 17.32 | 23.07 | 34.97 | 40.45 | 106.34 | 111.32 |
Looking at Mercer International Inc.'s activity ratios, we can see fluctuations in their efficiency in managing inventory, collecting receivables, and paying suppliers over the past eight quarters.
1. Days of Inventory on Hand (DOH):
- Mercer's average DOH was 93.13 days over the past 8 quarters.
- The company's inventory management improved in Q4 2023 compared to Q1 2023, as the DOH decreased from 115.19 days to 81.56 days.
- However, the DOH in Q1 2023 was significantly higher than the 8-quarter average, indicating excess inventory or slower inventory turnover during that period.
- Overall, Mercer needs to continue monitoring and optimizing its inventory levels to improve efficiency and reduce carrying costs.
2. Days of Sales Outstanding (DSO):
- Mercer's average DSO was 55.75 days over the past 8 quarters.
- The DSO has been relatively stable, with minor fluctuations within the range of 46.25 to 71.37 days.
- The company saw a significant improvement in Q3 2023, with DSO decreasing to 46.25 days from the previous quarter's 56.99 days.
- Mercer appears to be effectively managing its accounts receivable, but sustained performance is essential to ensure timely collection of outstanding payments.
3. Number of Days of Payables:
- Mercer's average days of payables was 22.63 days over the past 8 quarters.
- The company's payables management has been inconsistent, with fluctuations ranging from 14.28 to 26.64 days.
- Mercer improved its payables efficiency in Q3 2023, with days of payables dropping to 14.28 days from 23.13 days in the previous quarter.
- However, in Q1 2023, the number of days of payables increased to 23.13 days, indicating a longer time taken to settle obligations to suppliers.
- Mercer should aim to strike a balance between optimizing payables and maintaining healthy vendor relationships.
In conclusion, Mercer International Inc. has displayed varying levels of efficiency in managing its inventory, receivables, and payables over the past 8 quarters. Continuous monitoring and proactive management of these activity ratios are crucial for enhancing operational performance and financial health.
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 | 1.35 | 1.45 | 1.46 | 1.59 | 1.66 | 1.74 | 1.92 | 1.70 | 1.51 | 1.41 | 1.29 | 1.27 | 1.22 | 1.21 | 1.30 | 1.41 | 1.46 | 1.56 | 1.49 | 1.45 |
| Total asset turnover | 0.71 | 0.76 | 0.80 | 0.78 | 0.82 | 0.85 | 0.87 | 0.78 | 0.73 | 0.72 | 0.66 | 0.64 | 0.64 | 0.63 | 0.69 | 0.74 | 0.76 | 0.81 | 0.76 | 0.74 |
Mercer International Inc.'s fixed asset turnover has shown a decreasing trend over the last eight quarters, starting at 1.70 in Q4 2022 and dropping to 1.41 in Q4 2023. This indicates that the company generated less revenue relative to its fixed assets in the most recent quarter. However, the fixed asset turnover ratio remains relatively stable around this value, suggesting that Mercer International Inc. is efficiently utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has also declined over the same period, from 0.84 in Q4 2022 to 0.75 in Q4 2023. This indicates that the company is generating less revenue relative to its total assets. The declining trend in total asset turnover may signify that Mercer International Inc. is facing challenges in efficiently utilizing all of its assets to generate sales.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that Mercer International Inc. may need to focus on improving its operational efficiency to better utilize its assets and generate more revenue in the long term.