nVent Electric PLC (NVT)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.42 | 6.36 | 6.13 | 5.48 | 5.18 | 6.62 | 6.96 | 6.37 | 6.15 | 6.32 | 6.42 | 6.44 | 7.45 | 8.15 | 8.22 | 12.41 | 9.92 | 8.73 | 7.54 | 3.27 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 10.76 | 10.66 | 9.82 | 10.47 | 10.20 | 10.07 | 9.58 | 9.21 | 8.25 | 8.35 | 7.92 | 8.53 | 9.36 | 10.96 | 11.31 | 21.31 | 18.20 | 14.41 | 9.86 | 6.06 |
| Working capital turnover | 4.40 | 4.85 | 5.30 | 4.83 | 4.43 | 4.49 | 4.96 | 4.91 | 5.89 | 6.80 | 8.77 | 7.19 | 5.88 | 5.97 | 6.27 | 4.97 | 4.15 | 4.52 | 6.45 | 5.88 |
nVent Electric PLC's inventory turnover ratio has shown some variability over the periods analyzed, ranging from a low of 3.27 to a high of 12.41. Generally, the company has maintained a healthy inventory turnover ratio, indicating that it efficiently manages its inventory levels and has good sales performance.
The company's payables turnover ratio has also fluctuated but has generally remained at a relatively stable level, with a range from 6.06 to 21.31. This suggests that nVent Electric PLC effectively manages its accounts payable by paying its suppliers in a timely manner.
In terms of working capital turnover, the company has experienced fluctuations in this ratio as well, with values ranging from 4.15 to 8.77. Generally, a higher working capital turnover ratio indicates effective utilization of the company's working capital to generate sales revenues.
Overall, nVent Electric PLC's activity ratios indicate efficient management of its inventory, payables, and working capital, which are crucial aspects of the company's operational efficiency and financial performance.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 56.85 | 57.36 | 59.50 | 66.59 | 70.49 | 55.12 | 52.41 | 57.31 | 59.35 | 57.73 | 56.85 | 56.66 | 49.02 | 44.78 | 44.38 | 29.42 | 36.79 | 41.79 | 48.42 | 111.73 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 33.93 | 34.23 | 37.17 | 34.86 | 35.79 | 36.26 | 38.11 | 39.62 | 44.25 | 43.71 | 46.09 | 42.77 | 39.00 | 33.30 | 32.28 | 17.13 | 20.05 | 25.33 | 37.02 | 60.20 |
Days of Inventory on Hand (DOH) for nVent Electric PLC have been fluctuating over the past few quarters, with a general increasing trend observed from December 2019 to June 2020, reaching a peak of 111.73 days, followed by a significant decrease to 29.42 days by December 2020. Since then, there have been fluctuations, but the trend seems to have stabilized around the range of 50-60 days.
Days of Sales Outstanding (DSO) data is missing for all periods, so we cannot analyze this activity ratio for nVent Electric PLC.
Number of Days of Payables for the company has been fluctuating as well, but there is a general increasing trend observed from September 2019 to December 2022. However, there was a significant decrease in payables days from December 2022 to March 2023, followed by a gradual increase again. As of June 2024, the number of days of payables is around 34 days, indicating the average number of days it takes for the company to pay its suppliers.
Overall, nVent Electric PLC's activity ratios suggest that the company has managed its inventory levels and payables effectively over the periods analyzed, ensuring a balance between inventory management and managing its payment obligations to suppliers.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 8.78 | 8.64 | 8.19 | 8.31 | 7.92 | 9.98 | 9.95 | 10.26 | 9.63 | 8.91 | 8.29 | 7.96 | 7.39 | 7.08 | 6.81 | 7.25 | 7.46 | 7.73 | 7.63 | 7.75 |
| Total asset turnover | 0.55 | 0.54 | 0.52 | 0.52 | 0.51 | 0.59 | 0.59 | 0.57 | 0.56 | 0.54 | 0.52 | 0.49 | 0.46 | 0.45 | 0.45 | 0.46 | 0.44 | 0.46 | 0.47 | 0.47 |
nVent Electric PLC's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide key insights into the company's efficiency in utilizing its assets to generate sales. The fixed asset turnover ratio indicates how effectively the company is generating sales from its investments in fixed assets such as property, plant, and equipment.
Over the periods analyzed, nVent Electric PLC's fixed asset turnover ratio ranged from 6.81 to 10.26, with an average of approximately 8.3. This signifies that, on average, the company generated $8.3 in sales for every $1 invested in fixed assets. The ratio fluctuated over time, reaching a peak in March 2023 at 9.98, indicating a high level of efficiency in utilizing fixed assets to generate revenue.
On the other hand, the total asset turnover ratio reflects how well the company is utilizing all its assets (fixed and current) to generate revenue. nVent Electric PLC's total asset turnover ratio ranged from 0.45 to 0.59, with an average of approximately 0.52. This suggests that, on average, the company generated $0.52 in sales for every $1 of total assets.
It is important to note that a higher asset turnover ratio generally indicates better efficiency in asset utilization. nVent Electric PLC's ratios show a relatively consistent performance, with some fluctuations over time. Overall, the company demonstrates effectiveness in generating sales from both fixed and total assets, which is crucial for long-term sustainability and profitability.