MSA Safety (MSA)

Short-term

Turnover ratios

Based on the provided data for MSA Safety's activity ratios, we can observe the following trends:

1. Inventory Turnover:
- MSA Safety's inventory turnover has shown a slight decrease from 3.83 in 2020 to 3.19 in 2024. This indicates that the company is selling its inventory at a slightly slower pace over the years.

2. Receivables Turnover:
- The data does not contain information on MSA Safety's receivables turnover, which makes it challenging to analyze the efficiency of the company in collecting receivables from customers.

3. Payables Turnover:
- Similarly, there is no information available for MSA Safety's payables turnover, which could have provided insights into how quickly the company pays its suppliers.

4. Working Capital Turnover:
- MSA Safety's working capital turnover has fluctuated between 2.86 and 3.94 over the years. A higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate sales.

In conclusion, while the inventory turnover has slightly decreased, the working capital turnover ratio shows fluctuations but generally indicates efficient use of working capital. However, the absence of data for receivables and payables turnover limits a comprehensive analysis of MSA Safety's overall activity ratios.

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Average number of days

MSA Safety's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The DOH increased from 95.28 days in December 2020 to 130.51 days in December 2021, peaked at 144.58 days in December 2022, then decreased to 114.16 days in December 2023, and slightly increased to 114.31 days in December 2024.
- A higher DOH indicates that it takes longer for MSA Safety to sell its inventory. The increase in 2021-2022 suggests inventory management challenges, which improved in 2023 but remained relatively high.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for any of the years provided. DSO reflects how quickly the company collects payments from its customers. Without this data, it's challenging to assess MSA Safety's collection efficiency.

3. Number of Days of Payables:
- Similarly, data on the number of days of payables is unavailable for all years provided. This ratio indicates how long it takes for MSA Safety to pay its suppliers.

In conclusion, MSA Safety has shown fluctuations in its DOH over the years, indicating varying trends in inventory management efficiency. However, without DSO and payables data, a comprehensive evaluation of the company's working capital management is not possible.

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Long-term

The long-term activity ratios of MSA Safety, as reflected by the fixed asset turnover and total asset turnover ratios, provide insights into the company's efficiency in utilizing its fixed assets and total assets to generate revenues.

1. Fixed Asset Turnover: This ratio measures the company's ability to generate sales from its investments in fixed assets. MSA Safety's fixed asset turnover ratio has shown a generally positive trend over the years, with values of 7.11 in 2020, 6.74 in 2021, and a peak of 7.36 in 2022. The ratios indicate that for each dollar invested in fixed assets, the company was able to generate $7.11, $6.74, and $7.36 in sales in the respective years. However, there is missing data for 2023 and 2024, which may signify a lack of fixed asset turnover information for these periods.

2. Total Asset Turnover: This ratio reflects the company's efficiency in using all its assets to generate revenue. MSA Safety's total asset turnover ratio decreased from 0.72 in 2020 to 0.58 in 2021 before showing a slight improvement to 0.64 in 2022. The ratio then significantly increased in 2023 and 2024 to 0.82, indicating that the company generated more sales per dollar of total assets invested in those years.

In conclusion, the trend in MSA Safety's long-term activity ratios suggests that the company has been relatively efficient in utilizing its fixed assets and total assets to generate sales. The increasing total asset turnover ratio in the later years indicates improved efficiency in asset utilization, which could potentially lead to increased profitability and shareholder value. However, the stability or further improvement in these ratios in the coming years would be essential for assessing the company's long-term operational efficiency and growth potential.