National Presto Industries Inc (NPK)

Short-term

Turnover ratios

The inventory turnover ratio for National Presto Industries Inc indicates the number of times the company's inventory is sold and replaced within a given period. The trend shows a fluctuating pattern over the years, ranging from a low of 1.09 to a high of 2.03. A general observation is a decline in inventory turnover towards the later period, suggesting a slower rate of inventory movement compared to earlier periods.

The receivables turnover ratio, which reflects how efficiently the company is collecting revenue from its credit sales, is not provided for the period under review. Hence, an assessment of the effectiveness of the company in collecting its accounts receivable cannot be made based on this data.

Similarly, the payables turnover ratio, which measures how quickly a company pays its suppliers, is not available for analysis in the provided data.

Finally, the working capital turnover ratio, which evaluates the efficiency of the company's working capital management in generating sales, displays a varying trend throughout the period. The ratio fluctuates between 1.08 and 1.53, indicating differences in how effectively the company utilizes its working capital to generate revenue over time.

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Average number of days

Based on the provided data for National Presto Industries Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH indicates the average number of days a company holds onto its inventory before selling it.
- From June 30, 2020, to March 31, 2025, we observe fluctuations in DOH ranging from 183.36 days to 335.66 days.
- Initially, the DOH decreased slightly from 196.38 days on June 30, 2020, to 180.21 days on December 31, 2021.
- However, in the following periods, the DOH increased significantly, reaching the highest level of 335.66 days on September 30, 2024.
- A rising trend in DOH may indicate slower inventory turnover and potential inefficiencies in inventory management.

2. Days of Sales Outstanding (DSO):
- Unfortunately, specific data on DSO for National Presto Industries Inc is not provided from June 30, 2020, to March 31, 2025.
- DSO measures the average number of days it takes for a company to collect its accounts receivable.
- Without this data, it's challenging to evaluate the company's efficiency in collecting payments from customers.

3. Number of Days of Payables:
- Similarly, there is no data provided for the number of days of payables for National Presto Industries Inc from June 30, 2020, to March 31, 2025.
- This ratio typically reflects how long a company takes to pay its suppliers.
- Without this information, it is difficult to assess the company's payment behavior towards its suppliers.

In conclusion, the analysis of National Presto Industries Inc's activity ratios based on the provided data shows fluctuations in the Days of Inventory on Hand, but the absence of data for Days of Sales Outstanding and Number of Days of Payables limits the overall assessment of the company's efficiency in managing its working capital effectively.

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Long-term

The long-term activity ratios of National Presto Industries Inc provide valuable insights into the efficiency of the company's utilization of fixed assets and total assets over time.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company generates sales revenue from its investment in fixed assets.
- The ratio fluctuates over the periods reported, suggesting variations in the company's ability to efficiently utilize its fixed assets to generate revenue.
- Notably, the ratio peaked at 9.31 in September 2020, indicating that National Presto Industries Inc generated $9.31 in sales for every dollar invested in fixed assets at that time.
- The ratio showed some inconsistency in its trend, with periods of improvement followed by slight decline until reaching 6.97 in September 2023.
- It is important to note the absence of data for certain periods, indicating potentially inconsistent reporting or changes in the company's fixed asset utilization during those times.

2. Total Asset Turnover:
- The total asset turnover ratio reflects how efficiently the company generates sales revenue in relation to its total assets.
- The ratio shows a fluctuating trend across the reporting periods, indicating changes in the company's overall asset efficiency.
- Noteworthy is the increase in the ratio from 0.79 in June 2020 to 0.98 in March 2025, indicating a potential improvement in the company's revenue generation relative to its total assets over this period.
- Despite fluctuations, the ratio generally remained within a range between 0.76 and 0.93, suggesting fluctuations but overall stability in asset turnover efficiency.

In conclusion, the analysis of National Presto Industries Inc's long-term activity ratios highlights the company's varying efficiency in utilizing fixed assets and total assets to generate sales revenue over time. Further examination of the factors influencing these ratios and their implications on the company's operational performance would be essential for a comprehensive assessment of its long-term activity efficiency.