Enpro Industries (NPO)

Short-term

Turnover ratios

Enpro Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Inventory turnover: Enpro Inc's inventory turnover has been relatively stable over the past five years, ranging from 4.41 to 5.10 times. This indicates that the company is able to sell and replace its inventory multiple times within a year. A high inventory turnover ratio suggests efficient inventory management and may indicate strong sales or effective inventory control.

2. Receivables turnover: Enpro Inc's receivables turnover has shown an increasing trend from 6.45 to 9.08 times over the past five years. This indicates that the company is collecting its accounts receivables more frequently, which can improve cash flow and reduce the risk of bad debts. A higher receivables turnover ratio is generally favorable as it shows the efficiency of the company in collecting outstanding payments.

3. Payables turnover: Enpro Inc's payables turnover has remained relatively stable between 8.61 to 10.00 times over the past five years. A high payables turnover ratio suggests that the company is paying its suppliers quickly, which may indicate strong supplier relationships or negotiating power. However, an extremely high payables turnover ratio may also signal potential liquidity issues.

4. Working capital turnover: Enpro Inc's working capital turnover has varied over the years, with the lowest value in 2021 at 2.77 times and the highest value in 2019 at 3.42 times. This ratio measures how effectively the company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates efficient use of resources and may suggest that the company is effectively managing its short-term assets and liabilities.

Overall, Enpro Inc's activity ratios reflect a mix of efficient operating cycles related to inventory, accounts receivable, and accounts payable. It is important for the company to monitor these ratios over time to ensure continued operational efficiency and financial health.

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Average number of days

Enpro Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): Enpro Inc's DOH has been relatively stable over the past five years, ranging between 71.51 days to 82.81 days. This indicates that, on average, the company holds inventory for around 72 to 83 days before it is sold. A consistent DOH level suggests a steady inventory management strategy.

2. Days of Sales Outstanding (DSO): Enpro Inc's DSO has shown some variability over the years, with values ranging from 40.21 days to 56.58 days. A lower DSO indicates that the company collects its accounts receivable more quickly, while a higher DSO suggests delayed collections. The decreasing trend in DSO from 56.58 days in 2021 to 40.21 days in 2023 could be a positive sign of improved receivables management efficiency.

3. Number of Days of Payables: Enpro Inc's days of payables have remained relatively stable around 37 to 43 days over the past five years. A higher number of days of payables indicates that the company takes longer to pay its suppliers, potentially benefiting from extending payment terms. The stable trend in payables days suggests a consistent approach to managing trade credit agreements with suppliers.

Overall, Enpro Inc's activity ratios indicate a reasonable balance in managing inventory, receivables, and payables. The company has shown stability in its inventory holding period and payable days, while also improving its efficiency in collecting accounts receivable over the years.

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Long-term

Based on the data provided, we can analyze Enpro Inc's long-term activity ratios:

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets.
- Enpro Inc's fixed asset turnover has fluctuated over the past five years, ranging from 4.82 to 5.94. In 2023, the ratio stood at 5.47.
- This suggests that Enpro Inc was able to generate $5.47 in sales for every $1 of fixed assets in 2023, showcasing efficient utilization of fixed assets compared to the previous year but slightly lower compared to the peak at 5.94 in 2022.

2. Total Asset Turnover:
- The total asset turnover ratio measures a company's ability to generate sales from its total assets. A higher ratio indicates better efficiency in asset utilization.
- Enpro Inc's total asset turnover has remained relatively low over the past five years, ranging from 0.38 to 0.59. In 2023, the ratio was 0.42.
- This indicates that Enpro Inc generated $0.42 in sales for every $1 of total assets in 2023, showing consistency in asset utilization efficiency compared to the previous year.

In conclusion, Enpro Inc has shown stable efficiency in utilizing fixed assets to generate sales, with a slight decrease in the fixed asset turnover ratio in 2023. However, the company's total asset turnover remains relatively low, indicating potential room for improvement in utilizing its total assets more effectively to drive sales.