National Presto Industries Inc (NPK)

Short-term

Turnover ratios

National Presto Industries Inc's inventory turnover ratio has shown a fluctuating trend over the past five years, with an increase from 1.98 in 2020 to 2.03 in 2021, followed by a decrease to 1.11 in 2024. This indicates that the company's ability to manage its inventory efficiently has varied over the years.

The absence of data for receivables turnover and payables turnover ratios suggests that specific details regarding the company's management of its receivables and payables are not available for analysis. This lack of information limits our ability to assess the efficiency of National Presto Industries Inc in collecting receivables and managing payables.

In terms of the working capital turnover ratio, there has been a slight increase from 1.17 in 2020 to 1.27 in 2024. This ratio reflects how effectively the company utilizes its working capital to generate revenue. The consistent values around 1.2 indicate a relatively stable performance in turning working capital into sales revenue over the years.

Overall, while the inventory turnover and working capital turnover ratios provide insights into National Presto Industries Inc's operational efficiency, the absence of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall working capital management.

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Average number of days

The activity ratios of National Presto Industries Inc related to inventory management indicate the following trends:

1. Days of Inventory on Hand (DOH):
- The company's days of inventory on hand has fluctuated over the past five years, starting at 184.73 days in December 2020 and increasing to 327.68 days by December 2024. This suggests that the company may be holding onto its inventory for longer periods, which could tie up working capital and possibly indicate inefficiencies in inventory management.

2. Days of Sales Outstanding (DSO):
- The data indicates that there are no available figures for the days of sales outstanding for National Presto Industries Inc over the five-year period. This could suggest that the company does not have a significant amount of accounts receivable or that the data is not reported in the source provided.

3. Number of Days of Payables:
- Similarly, there is a lack of available information on the number of days of payables for the company over the same period, indicating that the data may not be disclosed or readily accessible.

Overall, the analysis of National Presto Industries Inc's activity ratios highlights potential challenges in inventory management practices, as indicated by the increasing trend in days of inventory on hand. Further insights into the company's accounts receivable and payables turnover could provide a more comprehensive understanding of its overall working capital efficiency.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates sales from its fixed assets. In the case of National Presto Industries Inc, the fixed asset turnover ratio has shown fluctuation over the years. In 2020, the ratio was 8.71, indicating that the company generated $8.71 in sales for every $1 invested in fixed assets. However, by 2021, this ratio decreased to 4.84, suggesting a decline in the efficiency of utilizing fixed assets to generate revenue.

By 2022, the fixed asset turnover ratio improved to 7.70, showing a better utilization of fixed assets to generate sales. Unfortunately, the data for 2023 and 2024 is missing, making it challenging to assess the trend beyond 2022.

Additionally, the total asset turnover ratio, which indicates how efficiently a company generates sales from all its assets, stood at 0.81 in 2020, increased slightly to 0.85 in 2021, but then decreased to 0.78 by 2022. This decline implies that the company may not be efficiently utilizing all its assets to generate sales.

In 2023, the total asset turnover ratio remained at 0.77, and there was a slight recovery in 2024 with a ratio of 0.86. It is important for National Presto Industries Inc to closely monitor these ratios to ensure the optimal utilization of both fixed and total assets in generating revenue.