NewMarket Corporation (NEU)
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 | 3.76 | 3.59 | 3.86 | 3.85 | 4.22 | 3.90 | 3.81 | 3.75 | 3.36 | 3.53 | 3.82 | 3.65 | 3.63 | 3.58 | 3.45 | 3.48 | 3.53 | 3.86 | 4.16 | 4.19 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | 3.77 | 3.91 | 3.70 | 4.00 | 3.73 | 3.50 | 3.63 | 3.60 | 3.55 | 3.62 | 3.49 | 3.55 | 2.37 | 2.09 | 1.99 | 3.43 | 3.70 | 3.71 | 3.58 |
The inventory turnover ratio measures the efficiency of NewMarket Corporation in managing its inventory. The trend analysis shows a slight decrease in inventory turnover from 4.19 times in March 2020 to 3.76 times in December 2024. This indicates that the company is selling its inventory at a slightly slower pace over the years.
The receivables turnover ratio, which reflects how efficient the company is in collecting outstanding credit sales, is not available in the provided data, suggesting that information on this metric is not disclosed or calculated by NewMarket Corporation.
Similarly, the payables turnover ratio, which assesses how quickly the company pays its suppliers, is also not provided in the data. This could indicate a lack of disclosure or potential limitations in evaluating the company's payment practices.
In terms of working capital turnover, the company's efficiency in generating revenue from its working capital fluctuates over the years. The ratio varies between 1.99 and 4.00, showing some inconsistency in utilizing working capital to generate sales.
Overall, based on the available activity ratios data, NewMarket Corporation shows a moderate efficiency in managing its inventory turnover, while information on receivables turnover, payables turnover, and working capital turnover is limited or not fully disclosed. Further analysis and additional information may be required to provide a more comprehensive assessment of the company's operational efficiency.
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 | 97.08 | 101.63 | 94.45 | 94.74 | 86.47 | 93.62 | 95.91 | 97.40 | 108.48 | 103.37 | 95.45 | 100.10 | 100.62 | 101.92 | 105.94 | 104.96 | 103.38 | 94.47 | 87.70 | 87.07 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for NewMarket Corporation fluctuated over the analyzed period, ranging from a low of 86.47 days as of December 31, 2023, to a high of 108.48 days as of December 31, 2022. The trend shows some volatility in managing inventory levels efficiently. On average, the company held inventory for around 96 days.
However, data for Days of Sales Outstanding (DSO) and Number of Days of Payables are not available, which limits the ability to comprehensively assess NewMarket Corporation's efficiency in collecting receivables and managing payables. This lack of data obscures a full picture of the company's working capital management and liquidity position.
In conclusion, while the inventory management of NewMarket Corporation has shown variability, a more thorough analysis incorporating the missing data points would provide a more comprehensive understanding of the company's overall activity ratios and operational efficiency.
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 | — | — | — | — | — | 3.83 | 4.22 | 4.26 | 4.19 | 4.07 | 3.90 | 3.65 | 3.16 | 3.10 | 2.95 | 3.00 | 3.02 | 3.11 | 3.22 | 3.49 |
| Total asset turnover | 0.89 | 0.88 | 0.86 | 0.85 | 1.17 | 1.20 | 1.17 | 1.19 | 1.15 | 1.14 | 1.11 | 1.07 | 0.92 | 0.95 | 0.89 | 0.84 | 1.04 | 1.07 | 1.15 | 1.14 |
NewMarket Corporation's fixed asset turnover ratio has been fluctuating over the years but generally shows an increasing trend from March 31, 2020, to September 30, 2023, peaking at 4.26 on March 31, 2023. This indicates the company's ability to generate sales from its fixed assets has been improving.
On the other hand, the total asset turnover ratio shows a less stable pattern, with a peak of 1.20 on September 30, 2023. However, there are periods where the ratio drops significantly, such as March 31, 2021, and March 31, 2024, suggesting a decrease in sales generated from total assets during those periods.
Overall, the analysis of NewMarket Corporation's long-term activity ratios indicates an improvement in its ability to utilize fixed assets efficiently to generate sales, although there is some inconsistency in the usage of total assets to generate revenue.