Materion Corporation (MTRN)

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 3.40 3.33 3.37 3.65 3.81 3.80 2.69 1.71 0.49 0.26 0.39 0.52 0.69 0.54 0.49 0.43 0.30 -0.59 -0.54 -0.50
Receivables turnover 8.48 8.85 8.91 8.30 8.07 11.73 — — 6.73 — — — 2.19 2.03 2.15 2.35 2.16 2.13 2.44 2.35
Payables turnover 11.96 16.16 12.40 12.50 14.92 16.55 9.97 6.40 2.03 1.15 1.42 1.97 3.09 2.01 1.98 1.63 1.65 -2.59 -2.77 -2.00
Working capital turnover 3.60 3.35 3.61 3.80 3.84 5.53 4.80 4.13 3.56 0.91 0.99 1.03 1.08 1.21 0.81 0.89 0.80 1.01 1.06 1.12

The activity ratios of Materion Corp for the most recent quarters show fluctuations in its operational efficiency.

1. Inventory Turnover:
Materion Corp's inventory turnover ratio has generally been declining over the quarters, indicating that the company took longer to sell its inventory. This could imply potential issues with inventory management or slowing sales.

2. Receivables Turnover:
The receivables turnover ratio has been fluctuating, but the trend shows an increase in the most recent quarter. This indicates that the company is collecting its accounts receivable more efficiently. A higher receivables turnover ratio suggests better credit and collection practices.

3. Payables Turnover:
The payables turnover ratio has also shown fluctuations, with a decrease in the most recent quarter. A lower payables turnover ratio could be a sign that the company is taking longer to pay its suppliers, potentially affecting relationships or cash flow management.

4. Working Capital Turnover:
Materion Corp's working capital turnover ratio has varied over the quarters, but the trend has remained relatively stable. This ratio measures how efficiently the company is using its working capital to generate sales. A higher ratio indicates better utilization of working capital.

Overall, the analysis of Materion Corp's activity ratios highlights areas of operational efficiency and potential areas for improvement, such as inventory management and payment practices. Continued monitoring of these ratios can provide insights into the company's operational performance and financial health.

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 107.24 109.68 108.23 100.01 95.91 96.09 135.93 213.39 752.35 1,384.99 925.25 696.83 532.64 679.99 744.36 845.78 1,212.49 — — —
Days of sales outstanding (DSO) days 43.07 41.23 40.99 44.00 45.25 31.11 — — 54.24 — — — 166.68 180.08 169.51 155.41 169.21 171.73 149.35 155.63
Number of days of payables days 30.52 22.59 29.44 29.20 24.46 22.06 36.59 57.04 179.68 317.99 256.50 185.14 118.18 181.56 184.78 223.71 221.74 — — —

Materion Corp's activity ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- The average number of days Materion holds inventory has been gradually increasing over the past eight quarters, reaching 122.47 days in Q4 2023. This indicates that the company is taking longer to sell its inventory, which could tie up working capital and lead to increased carrying costs.

2. Days of Sales Outstanding (DSO):
- Materion's Days of Sales Outstanding have shown some fluctuations over the quarters, with a low of 40.31 days in Q2 2023 and a high of 54.05 days in Q1 2022. A lower DSO implies that the company is collecting its receivables more quickly, which is a positive sign of efficient credit management.

3. Number of Days of Payables:
- The number of days Materion takes to pay its suppliers has also varied, with the highest being 34.85 days in Q4 2023 and the lowest at 25.13 days in Q3 2022. A longer payable period could indicate that the company is conserving cash by delaying payments, but it may also strain supplier relationships if it becomes excessive.

Overall, Materion Corp's activity ratios suggest that the company may need to focus on managing its inventory levels more effectively to improve efficiency and optimize its working capital utilization. Additionally, monitoring receivables collection and payables management could help in maintaining a healthy cash flow position.

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 3.17 3.32 3.40 3.67 3.87 6.58 5.62 4.67 3.68 0.98 1.01 1.09 1.18 1.03 1.32 1.39 1.44 1.50 1.43 1.35
Total asset turnover 0.93 0.94 0.96 1.00 1.03 1.65 1.40 1.17 0.94 0.29 0.31 0.33 0.34 0.28 0.30 0.39 0.37 0.42 0.42 0.41

Materion Corp's fixed asset turnover ratio has shown a declining trend over the past eight quarters, decreasing from 3.92 in Q4 2022 to 3.24 in Q4 2023. This suggests that the company is generating less revenue per dollar of fixed assets invested. The decreasing trend could indicate potential inefficiencies in asset utilization or a shift towards capital-intensive projects.

On the other hand, the total asset turnover ratio has been relatively stable, ranging between 0.94 and 1.04 over the same period. This indicates that Materion Corp is generating revenue efficiently in relation to its total assets. The stable total asset turnover ratio may suggest that the company is effectively managing both its fixed and current assets to generate sales.

Overall, the analysis of Materion Corp's long-term activity ratios indicates that there may be room for improvement in the utilization of fixed assets to generate revenue efficiently. However, the company seems to be effectively managing its total assets to generate sales, maintaining a relatively stable total asset turnover ratio over the analyzed period.