Mettler-Toledo International Inc (MTD)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.52 | 4.06 | 4.16 | 4.13 | 4.01 | 4.23 | 4.07 | 3.78 | 3.65 | 3.58 | 3.48 | 3.57 | 3.73 | 3.92 | 4.10 | 4.18 | 4.31 | 4.28 | 4.11 | 4.28 |
| Receivables turnover | 5.64 | 5.90 | 5.91 | 5.82 | 5.71 | 6.16 | 6.10 | 6.17 | 5.53 | 6.38 | 6.17 | 6.17 | 5.74 | 6.00 | 5.79 | 5.64 | 5.20 | 5.73 | 5.99 | 5.74 |
| Payables turnover | 7.17 | 7.51 | 7.65 | 8.14 | 7.35 | 9.13 | 9.44 | 9.14 | 6.38 | 7.13 | 6.02 | 6.14 | 5.67 | 6.82 | 6.82 | 7.09 | 7.30 | 8.53 | 7.90 | 7.42 |
| Working capital turnover | 150.56 | 283.73 | — | 47.81 | 77.12 | 30.92 | 16.58 | 13.98 | 17.24 | 25.83 | 18.75 | 17.13 | 30.27 | 14.79 | 14.83 | 13.59 | 14.25 | 10.60 | 10.24 | 5.72 |
Mettler-Toledo International Inc's inventory turnover ratio has been gradually decreasing over the past few years, from 4.28 in March 2020 to 4.52 in December 2024. This indicates that the company is taking longer to sell its inventory, which may suggest inefficiencies in inventory management or declining sales.
On the other hand, the receivables turnover ratio has shown some fluctuations but has generally remained relatively stable, ranging from 5.20 in December 2020 to 6.38 in September 2022. This suggests that the company is efficient in collecting payments from its customers.
The payables turnover ratio has fluctuated significantly over the years, with a noticeable decrease from 9.44 in June 2023 to 7.17 in December 2024. This may indicate that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships if not managed effectively.
The working capital turnover ratio has shown a significant increase from 5.72 in March 2020 to a peak of 283.73 in September 2024, before decreasing to 150.56 in December 2024. This indicates that the company is generating significant sales relative to its working capital, which could be a positive sign of efficiency and effective utilization of resources.
Overall, while Mettler-Toledo International Inc has demonstrated efficiency in managing its receivables and working capital, there are some potential concerns regarding inventory turnover and payables turnover that may require further attention and monitoring.
Average number of days
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 80.77 | 89.99 | 87.68 | 88.41 | 91.04 | 86.35 | 89.68 | 96.59 | 100.03 | 101.92 | 104.96 | 102.37 | 97.85 | 93.12 | 88.95 | 87.39 | 84.59 | 85.30 | 88.81 | 85.22 |
| Days of sales outstanding (DSO) | days | 64.77 | 61.82 | 61.78 | 62.71 | 63.97 | 59.26 | 59.81 | 59.13 | 66.05 | 57.23 | 59.17 | 59.17 | 63.55 | 60.86 | 63.06 | 64.70 | 70.25 | 63.67 | 60.93 | 63.55 |
| Number of days of payables | days | 50.93 | 48.57 | 47.73 | 44.82 | 49.64 | 39.96 | 38.65 | 39.93 | 57.19 | 51.19 | 60.61 | 59.47 | 64.42 | 53.53 | 53.55 | 51.48 | 49.97 | 42.79 | 46.19 | 49.16 |
Mettler-Toledo International Inc's activity ratios reflect its efficiency in managing its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH): The trend in the DOH ratio indicates the number of days it takes for the company to sell its inventory. From March 31, 2020, to December 31, 2024, Mettler-Toledo's DOH ranged from 80.77 days to 104.96 days. Overall, there was some fluctuation in the ratio over time, with a slight decrease in recent periods. A decreasing trend in DOH is generally favorable as it implies efficient management of inventory levels.
2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect its accounts receivable. Mettler-Toledo's DSO varied from 57.23 days to 70.25 days during the same period. Notably, there was a decreasing trend in DSO from December 31, 2021, to December 31, 2024, which indicates that the company was able to collect its receivables more swiftly in recent periods. A lower DSO signifies effective credit management and faster cash conversion.
3. Number of Days of Payables: This ratio reflects the average number of days it takes for the company to pay its suppliers. Mettler-Toledo's days of payables ranged from 38.65 days to 64.42 days between March 31, 2020, and December 31, 2024. The trend shows some variability with periods of increase and decrease. A higher number of days of payables can indicate a favorable working capital position but may also suggest potential liquidity risks or strained supplier relationships.
In conclusion, the analysis of Mettler-Toledo International Inc's activity ratios indicates a mixed performance in managing inventory, receivables, and payables over the specified period. Management should continue to monitor these ratios to ensure optimal efficiency in the company's operating cycle and working capital management.
Long-term
| Dec 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.03 | 4.76 | 4.88 | 4.89 | 4.72 | 5.12 | 5.07 | 5.06 | 5.03 | 5.35 | 5.08 | 4.84 | 4.65 | 4.62 | 4.39 | 4.15 | 3.86 | 3.95 | 3.95 | 4.01 |
| Total asset turnover | 1.20 | 1.13 | 1.15 | 1.15 | 1.13 | 1.19 | 1.17 | 1.16 | 1.12 | 1.18 | 1.16 | 1.14 | 1.12 | 1.13 | 1.11 | 1.07 | 1.10 | 1.08 | 1.10 | 1.03 |
The Fixed Asset Turnover ratio for Mettler-Toledo International Inc has shown a consistent upward trend over the past few years, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests that Mettler-Toledo is effectively utilizing its fixed assets to generate sales.
On the other hand, the Total Asset Turnover ratio has been relatively stable with some fluctuations but generally maintaining a level trend. This indicates that the company is efficiently generating sales in relation to its total assets, showing consistent operational efficiency.
Overall, both ratios suggest that Mettler-Toledo International Inc is effectively managing its assets to drive revenue growth and operational efficiency in its long-term activities.