Enpro Industries (NPO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.35 | 4.44 | 4.45 | 4.41 | 5.02 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 3.34 | 2.33 | 2.33 | 3.42 | 2.85 |
Enpro Industries' inventory turnover ratio has gradually decreased from 5.02 in 2020 to 4.35 in 2024. This suggests that the company is taking slightly longer to sell its inventory as the ratio has decreased over the years.
The receivables turnover ratio is not available for the years provided, indicating the company may not have data on how quickly it collects payments from customers. This lack of data could suggest a limitation in tracking customer payment efficiency.
Similarly, the payables turnover ratio is not provided for the years, which implies there may be insufficient data on how efficiently the company pays its suppliers.
On the other hand, the working capital turnover ratio has shown fluctuations over the years, ranging from 2.33 to 3.42. A higher turnover ratio indicates that the company is generating more revenue relative to its working capital during the year. The increase from 2020 to 2021 and the subsequent decrease to a similar level in 2023 followed by a rise in 2024 demonstrates variability in how efficiently Enpro Industries utilizes its working capital to generate revenue.
Overall, the trends in these activity ratios provide insight into the management of inventory, working capital, and potentially highlight areas where Enpro Industries could focus on improving efficiency in its operations.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 83.89 | 82.29 | 82.03 | 82.81 | 72.72 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios of Enpro Industries, as reflected in the data provided, indicate the efficiency of the company in managing its inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- The trend in the Days of Inventory on Hand shows an increase from 72.72 days on December 31, 2020, to 83.89 days on December 31, 2024. This suggests that the company is holding onto inventory for a longer period, which could tie up working capital and indicate potential inefficiencies in inventory management.
2. Days of Sales Outstanding (DSO):
- The DSO data is not provided (marked as "— days"), which makes it difficult to evaluate the efficiency of Enpro Industries in collecting receivables. A lower DSO would indicate a faster turnover of receivables, which is generally favorable for cash flow management.
3. Number of Days of Payables:
- Similarly, the Number of Days of Payables data is also not provided (marked as "— days"), so the efficiency of the company in paying its suppliers cannot be determined. A longer period of payables may indicate stronger bargaining power with suppliers but could also signal potential liquidity issues if payments are being delayed excessively.
In conclusion, while the increasing trend in Days of Inventory on Hand raises concerns about inventory management efficiency, the absence of data for Days of Sales Outstanding and Number of Days of Payables limits a comprehensive assessment of Enpro Industries' overall activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 5.94 | 4.82 | 5.51 |
| Total asset turnover | 0.42 | 0.42 | 0.42 | 0.38 | 0.52 |
The fixed asset turnover ratio measures how effectively a company is using its fixed assets to generate revenue. A higher ratio indicates that the company is efficiently utilizing its fixed assets to generate sales.
Based on the provided data for Enpro Industries:
- The fixed asset turnover ratio decreased from 5.51 in 2020 to 4.82 in 2021, suggesting a potential decrease in the efficiency of utilizing fixed assets to generate revenue.
- However, there was an improvement in the fixed asset turnover ratio to 5.94 in 2022, indicating a better utilization of fixed assets that year.
- The data for 2023 and 2024 is not available, which makes it difficult to assess the trend in fixed asset turnover in those years.
Total asset turnover ratio measures how well a company generates sales from its total assets. A higher ratio indicates efficient utilization of all assets to generate revenue.
In terms of total asset turnover for Enpro Industries:
- The total asset turnover ratio decreased from 0.52 in 2020 to 0.38 in 2021, indicating a decline in the efficiency of generating revenue from total assets.
- The ratio slightly improved to 0.42 in 2022 and remained the same at 0.42 in both 2023 and 2024.
Overall, Enpro Industries experienced fluctuations in its fixed asset turnover ratio, with a mix of improvements and declines over the years. The total asset turnover ratio also fluctuated, showing varying efficiencies in generating revenue from total assets. Monitoring these ratios can help assess the company's effectiveness in utilizing its assets to drive sales and profitability.