Minerals Technologies Inc (MTX)

Short-term

Turnover ratios

Minerals Technologies Inc's inventory turnover ratio has shown a slightly fluctuating trend over the past five years, ranging from 4.59 to 5.14. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales. A higher inventory turnover ratio is generally favorable as it suggests efficient inventory management.

The receivables turnover ratio, however, is not provided in the data provided. The lack of information on receivables turnover makes it challenging to assess how efficiently the company is collecting on its credit sales and managing its accounts receivable.

Similarly, the payables turnover ratio is not available in the data set, which would have helped in understanding how quickly the company is paying its suppliers and managing its accounts payable.

The working capital turnover ratio has shown an increasing trend over the five-year period, starting at 2.16 in 2020 and reaching 3.71 in 2022 before declining slightly to 2.89 in 2024. This indicates that the company is generating more revenue for each dollar of working capital employed. A higher working capital turnover ratio is generally seen as a positive indicator of operational efficiency.

In summary, while Minerals Technologies Inc's inventory turnover and working capital turnover ratios show positive trends, the absence of data on receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity efficiency.

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Average number of days

Based on the provided data for Minerals Technologies Inc, we can analyze the company's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- As of December 31, 2020, the company had 76.17 days of inventory on hand, which increased to 77.12 days by December 31, 2021.
- The trend then shows a slight decrease, with 76.67 days of inventory on hand as of December 31, 2022.
- There was a further decrease to 70.97 days by December 31, 2023, followed by an increase to 79.49 days by December 31, 2024.
- Overall, the company's inventory turnover seems to have fluctuated over the years, indicating potential challenges in managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO):
- The data does not provide specific information on Days of Sales Outstanding for any of the years, suggesting that details on the company's accounts receivable turnover and collection efficiency are not available for analysis.

3. Number of Days of Payables:
- Similarly, the information regarding the number of days of payables is not provided for any year, making it challenging to assess the company's payment terms and relationships with its suppliers.

In conclusion, while we can observe fluctuations in the Days of Inventory on Hand for Minerals Technologies Inc, the absence of data on Days of Sales Outstanding and Number of Days of Payables limits our ability to conduct a comprehensive analysis of the company's overall activity ratios.

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Long-term

The fixed asset turnover ratio of Minerals Technologies Inc has shown a consistent improvement over the years, increasing from 1.53 in 2020 to 2.02 in 2022. This indicates that the company is generating more revenue for each dollar invested in fixed assets, reflecting improved efficiency in utilizing its fixed assets.

On the other hand, the total asset turnover ratio of the company has been fluctuating slightly, reaching its peak at 0.65 in 2023. This ratio measures the company's ability to generate sales from its total assets. Despite some fluctuations, the company has maintained a relatively stable performance in converting its total assets into revenue over the years.

Overall, the increasing trend in fixed asset turnover ratio suggests that Minerals Technologies Inc is effectively utilizing its fixed assets to generate higher revenue, while the total asset turnover ratio indicates a moderate performance in utilizing its total assets efficiently to drive sales.