Mettler-Toledo International Inc (MTD)

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 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 4.62 4.49 4.40 4.45
Receivables turnover 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 5.31 5.93 5.94 6.04
Payables turnover 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 6.83 8.52 7.84 7.19
Working capital turnover 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 8.47 12.20 10.81 11.30

Mettler-Toledo International, Inc.'s activity ratios provide insight into how efficiently the company is managing its assets and liabilities.

- Inventory turnover has been relatively stable over the quarters, ranging between 3.65 and 4.23. This indicates that the company is able to sell and replace its inventory between 3.65 to 4.23 times per year.

- Receivables turnover shows a consistent pattern of around 5.5 to 6.2 times per year for the past eight quarters. This suggests that the company is efficient in collecting payments from customers.

- Payables turnover has shown an increasing trend, from 6.02 to 9.44, indicating the company is taking longer to pay suppliers as the turnover ratio increases. This could be a strategy to improve liquidity.

- Working capital turnover has fluctuated significantly, with a high of 77.12 in Q4 2023 and a low of 13.98 in Q1 2023. The high turnover in Q4 2023 may indicate efficient utilization of working capital, while the low turnover in Q1 2023 may suggest a temporary inefficiency.

Overall, the activity ratios suggest that Mettler-Toledo International, Inc. generally manages its assets and liabilities efficiently, with a potential focus on optimizing inventory turnover and working capital management in certain periods.

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 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 78.99 81.26 83.02 81.95
Days of sales outstanding (DSO) days 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 68.70 61.59 61.42 60.45
Number of days of payables days 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 53.45 42.86 46.56 50.73

The activity ratios of Mettler-Toledo International, Inc. reflect its efficiency in managing its operating cycle.

1. Days of Inventory on Hand (DOH):
The trend in the DOH indicates the number of days it takes for the company to sell its inventory. A decreasing trend in DOH from Q1 2023 to Q4 2023 suggests better inventory management efficiency. The company has been able to reduce the number of days its inventory sits idle, indicating effective inventory turnover.

2. Days of Sales Outstanding (DSO):
The DSO measures the average number of days it takes for the company to collect its accounts receivable. A lower DSO implies better cash flow management. Mettler-Toledo International has shown a consistent and decreasing trend in DSO over the quarters, indicating efficient credit control and prompt collection of receivables.

3. Number of Days of Payables:
This ratio shows the number of days the company takes to pay its suppliers. A higher number of days indicates that the company is taking longer to pay its creditors, which can be seen as a positive for cash flow management. In this case, Mettler-Toledo International has seen fluctuations in the number of days of payables but overall maintains a reasonable level of payables days.

Overall, Mettler-Toledo International, Inc. demonstrates good efficiency in managing its operating cycle, with improvements in inventory turnover and accounts receivable collection efficiency, while maintaining a balanced approach to managing payables.

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 4.72 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 4.02 4.13 4.07 4.09
Total asset turnover 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 1.08 1.13 1.11 1.12

Mettler-Toledo International, Inc.'s long-term activity ratios indicate the efficiency with which the company is utilizing its assets to generate sales. The fixed asset turnover ratio reveals the company's ability to generate sales from its fixed assets. The trend in the fixed asset turnover ratio demonstrates consistency and efficiency over the quarters, ranging between 4.72 and 5.35. This indicates that the company is effectively using its fixed assets to generate sales revenue.

On the other hand, the total asset turnover ratio measures how efficiently the company is generating sales from all its assets. The trend in the total asset turnover ratio also shows stability and efficiency, with values ranging from 1.12 to 1.19. This indicates that Mettler-Toledo International, Inc. is able to generate sales relative to its total assets consistently across the quarters.

Overall, both the fixed asset turnover and total asset turnover ratios reflect strong operational efficiency and effective asset utilization by Mettler-Toledo International, Inc. The stable and relatively high values of these ratios suggest that the company is efficiently managing its assets to drive sales growth and maximize shareholder value.