Newell Brands Inc (NWL)

Activity ratios

Short-term

Turnover ratios

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 Jun 30, 2019 Mar 31, 2019
Inventory turnover 5.44 4.46 4.10 3.60 3.81 3.44 3.56 3.99 4.36 4.57 4.65 4.68 6.16 6.73 6.70 6.75 6.22 9.82 9.56 9.52
Receivables turnover 6.55 6.70 6.48 7.13 7.42 6.53 6.62 7.39 6.94 6.03 5.86 6.23 5.48 5.31 5.74 6.74 5.01 4.56 4.76 5.29
Payables turnover 8.30 7.32 7.84 7.39 7.91 6.04 5.28 5.55 5.42 5.61 5.95 5.93 6.61 8.17 9.93 11.08 9.06 16.49 16.27 18.32
Working capital turnover 17.12 11.15 10.68 11.36 9.53 9.42 81.43 8.55 10.05 11.20 11.44 9.32 9.13 6.04 6.88 9.75 8.15 4.79 2.14 2.15

Newell Brands Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 2.81 to 3.78. A higher inventory turnover ratio indicates efficient management of inventory levels, as the company is selling and restocking its inventory at a faster rate.

The receivables turnover ratio has also shown consistency, with a range of 6.65 to 7.57 over the same period. This indicates that Newell Brands is efficient in collecting payments from its customers, as higher turnover ratios suggest quicker collection of accounts receivable.

On the other hand, the payables turnover ratio for Newell Brands has fluctuated, ranging from 4.27 to 6.24. A higher payables turnover ratio suggests that the company is taking longer to pay its suppliers, which could potentially strain supplier relationships if not managed effectively.

The working capital turnover ratio has shown significant variability, with a notable spike in Q2 2022 to 82.79. This high turnover ratio indicates that Newell Brands efficiently utilizes its working capital to generate sales revenue. However, the drastic fluctuation in this ratio may warrant further investigation into the company's working capital management practices.

Overall, Newell Brands Inc's activity ratios depict varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the past eight quarters. Monitoring these ratios can provide insights into the company's operational performance and efficiency in utilizing its resources.

Average number of days

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 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 67.12 81.82 89.05 101.33 95.69 106.19 102.53 91.43 83.65 79.94 78.43 77.98 59.25 54.23 54.45 54.06 58.70 37.16 38.19 38.34
Days of sales outstanding (DSO) days 55.75 54.44 56.37 51.21 49.16 55.94 55.13 49.39 52.63 60.56 62.32 58.60 66.59 68.72 63.57 54.17 72.90 79.98 76.75 68.94
Number of days of payables days 43.98 49.88 46.57 49.40 46.13 60.39 69.11 65.72 67.34 65.12 61.35 61.57 55.20 44.66 36.76 32.94 40.28 22.14 22.43 19.92

The activity ratios of Newell Brands Inc over the past eight quarters show fluctuations in the efficiency of the company's operations:

1. Days of Inventory on Hand (DOH): The trend in DOH demonstrates a general decreasing pattern from Q1 2022 to Q4 2023, indicating an improvement in inventory management efficiency. However, there were fluctuations within this trend, suggesting varying levels of inventory control during different quarters.

2. Days of Sales Outstanding (DSO): The DSO ratio fluctuated over the quarters, but there is no clear trend observed in the data. The company's collection period for accounts receivable varied, which could indicate inconsistent credit policies or changes in customer payment behavior.

3. Number of Days of Payables: The days of payables trend shows fluctuations over the quarters, with some quarters showing an increase in the number of days it takes for the company to pay its suppliers. The varying payment terms may reflect changes in the company's cash management strategies or supplier agreements.

Overall, the analysis of Newell Brands Inc's activity ratios suggests a need for continuous monitoring and potential optimization of inventory management, accounts receivable collection, and accounts payable processes to enhance operational efficiency and cash flow management.

Long-term

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 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 6.46 6.76 6.89 7.16 7.85 8.72 9.09 9.18 8.64 8.80 8.68 8.28 7.82 8.64 8.43 8.39 7.98 8.09 9.11 9.14
Total asset turnover 0.64 0.65 0.64 0.65 0.70 0.67 0.72 0.74 0.73 0.70 0.69 0.66 0.63 0.65 0.66 0.68 0.59 0.53 0.48 0.47

To assess Newell Brands Inc's long-term activity ratios, we look at the fixed asset turnover and total asset turnover over the past eight quarters.

The fixed asset turnover ratio measures how efficiently a company generates sales from its fixed assets. Newell Brands Inc's fixed asset turnover has been consistently high, ranging from 6.71 to 9.34 over the past two years. This indicates that the company is effectively utilizing its fixed assets to generate revenue.

In contrast, the total asset turnover ratio assesses a company's ability to generate sales from all its assets. Newell Brands Inc's total asset turnover has fluctuated between 0.66 and 0.75 during the same period. While the ratios are relatively stable, they are lower compared to the fixed asset turnover ratios. This suggests that Newell Brands Inc may have higher levels of assets relative to sales, which could indicate inefficiencies in asset utilization or potential overinvestment in assets.

Overall, Newell Brands Inc's high fixed asset turnover ratios demonstrate efficient use of fixed assets, while the total asset turnover ratios imply room for improvement in generating sales from all assets. Tracking these ratios over time can provide insights into the company's operational efficiency and asset management strategies.