Newell Brands Inc (NWL)

Short-term

Turnover ratios

The analysis of Newell Brands Inc activity ratios reveals the following trends:

1. Inventory Turnover: The company's inventory turnover ratio has fluctuated over the years, ranging from 3.01 to 3.85. A higher inventory turnover ratio indicates that the company is selling its inventory efficiently. Although there was a slight decline in 2022, the ratio remained relatively stable, indicating effective management of inventory during this period.

2. Receivables Turnover: The data provided does not include information on the receivables turnover ratio for any of the years. This could be due to the nature of the company's business or data availability constraints. A higher receivables turnover ratio would indicate that the company is collecting on its credit sales efficiently.

3. Payables Turnover: Similar to receivables turnover, no data is available for the payables turnover ratio for the company. This ratio measures how quickly a company pays its suppliers, and a higher ratio would indicate faster payment cycles.

4. Working Capital Turnover: The working capital turnover ratio of Newell Brands Inc has shown an increasing trend over the years, rising from 9.32 in 2020 to 22.43 in 2024. A higher working capital turnover ratio indicates that the company efficiently utilizes its working capital to generate sales. The significant increase in this ratio from 2020 to 2024 suggests improved efficiency in utilizing its working capital to drive revenue growth.

Overall, while the inventory turnover and working capital turnover ratios provide insights into the company's operational efficiency and utilization of resources, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of Newell Brands Inc's overall activity ratios.

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Average number of days

The activity ratios of Newell Brands Inc, based on the provided data, indicate the following:

1. Days of Inventory on Hand (DOH):
- The average number of days it takes for Newell Brands Inc to sell its inventory increased from 94.81 days in 2020 to 101.51 days in 2024, with fluctuations in between.
- A higher number of days of inventory on hand indicates that the company may be holding onto excess inventory, which could tie up capital and lead to higher storage costs.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on the days of sales outstanding for Newell Brands Inc for the years specified.
- Days of sales outstanding is a measure of how long it takes for a company to collect its accounts receivable. Without this data, it is challenging to evaluate the efficiency of the company's accounts receivable management over the years.

3. Number of Days of Payables:
- The data does not provide information on the number of days of payables for Newell Brands Inc for the years specified.
- The number of days of payables measures how long it takes for a company to pay its suppliers. Without this information, the analysis of the company's payment policies and cash flow management is limited.

In conclusion, while the days of inventory on hand increased over the years, the absence of data on days of sales outstanding and number of days of payables limits a comprehensive assessment of Newell Brands Inc's overall efficiency in managing its working capital and operations.

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Long-term

Newell Brands Inc's fixed asset turnover has shown a declining trend over the years, decreasing from 7.98 in 2020 to 5.37 in 2022. This indicates that the company generated less revenue per dollar of fixed assets invested. The data for 2023 and 2024 is not available.

In terms of total asset turnover, there was a slight increase from 0.64 in 2020 to 0.75 in 2021, but then it declined to 0.67 in 2023 before slightly increasing to 0.69 in 2024. This suggests that the company's overall efficiency in generating sales from its total assets fluctuated over the years.

Overall, the declining fixed asset turnover and fluctuating total asset turnover ratios indicate that Newell Brands Inc may need to evaluate its asset utilization efficiency and consider strategies to improve productivity and profitability in the long term.