Quanex Building Products (NX)

Activity ratios

Short-term

Turnover ratios

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Inventory turnover 9.08 10.19 8.33 7.96 7.45 7.88 6.80 6.97 7.39 8.99 8.49 9.16 8.91 10.77 10.21 8.95 8.88 10.34 8.25 8.13
Receivables turnover 13.85 5.79 11.81 12.36 14.34 6.37 11.01 9.83 11.16 4.96 10.54 10.03 10.72 4.82 9.90 12.90 13.96 5.39 10.91 11.15
Payables turnover 17.70 13.42 12.28 14.08 15.08 12.23 11.12 10.21 11.49 9.58 10.03 8.86 10.83 8.52 11.12 15.91 14.12 10.92 13.29 14.43
Working capital turnover 7.84 8.14 7.46 8.01 8.28 8.67 8.17 7.63 8.63 11.78 10.13 9.80 9.12 11.05 9.25 5.65 10.82 11.09 9.03 8.06

Quanex Building Products' inventory turnover has fluctuated over the past few periods, ranging from a low of 6.80 to a high of 10.77. The company's ability to manage its inventory efficiently improved in the most recent period, with a turnover ratio of 10.19. This suggests that the company is selling and replacing its inventory at a faster rate, which can help improve cash flow and profitability.

On the other hand, the receivables turnover ratio has also varied significantly, indicating fluctuations in the company's collection efficiency. The ratio reached a high of 14.34 in one period but dropped to a low of 4.82 in another. A lower receivables turnover may suggest that the company is facing challenges in collecting outstanding payments from customers, which could lead to cash flow issues.

In terms of payables turnover, Quanex Building Products has shown relatively consistent performance, with ratios ranging from 10.21 to 17.70. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, potentially indicating good relationships with its vendors. However, a very high turnover ratio could also signal that the company is not taking full advantage of credit terms available to them.

Lastly, the working capital turnover ratio has also varied over the periods analyzed, with a high of 11.78 and a low of 5.65. A higher working capital turnover ratio suggests that the company is efficiently utilizing its working capital to generate sales. Quanex Building Products' performance in this area has been relatively strong, indicating effective management of working capital resources.

Overall, analyzing Quanex Building Products' activity ratios provides insights into the company's operational efficiency, inventory management, accounts receivable collection, payment practices, and working capital utilization. By monitoring these ratios over time, investors and stakeholders can assess the company's ability to convert assets into sales, manage inventory levels, collect receivables, pay suppliers, and utilize working capital effectively.

Average number of days

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Days of inventory on hand (DOH) days 40.22 35.83 43.82 45.83 49.01 46.30 53.69 52.40 49.42 40.62 42.98 39.83 40.97 33.90 35.75 40.80 41.13 35.30 44.26 44.92
Days of sales outstanding (DSO) days 26.35 63.00 30.90 29.52 25.45 57.33 33.14 37.14 32.70 73.55 34.63 36.39 34.04 75.68 36.86 28.29 26.16 67.66 33.47 32.75
Number of days of payables days 20.62 27.20 29.72 25.92 24.21 29.84 32.83 35.75 31.77 38.08 36.40 41.18 33.69 42.85 32.81 22.95 25.85 33.43 27.46 25.29

Days of inventory on hand (DOH) for Quanex Building Products have fluctuated over the past two years, ranging from a low of 33.90 days to a high of 53.69 days. The trend appears to be somewhat cyclical, with periodic peaks and troughs. This metric indicates the average number of days it takes for the company to sell its inventory, with lower numbers suggesting efficient inventory management.

Days of sales outstanding (DSO) have also seen significant variability, ranging from a low of 25.45 days to a high of 75.68 days over the same period. This represents the average number of days it takes for the company to collect its accounts receivable, with lower values indicating quicker collection processes. The trend in DSO appears to follow a pattern similar to that of DOH.

The number of days of payables for Quanex Building Products has shown a similar pattern of fluctuation, with values ranging from 20.62 days to 42.85 days. This metric measures how long it takes the company to pay its suppliers, with larger numbers suggesting more extended payment terms. The trend in payables days mirrors the patterns observed in DOH and DSO, indicating a cyclical nature in the company's working capital management.

Overall, the fluctuating trends in all three activity ratios suggest that Quanex Building Products may have challenges in consistently managing its inventory, accounts receivable, and accounts payable efficiently. Further analysis and monitoring of these ratios are recommended to ensure optimal working capital management and operational performance.

Long-term

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Fixed asset turnover 4.37 4.51 4.62 4.79 5.02 6.77 6.87 6.82 6.33 6.00 5.88 5.42 4.85 4.63 4.48 4.60 4.65 4.62 4.71 4.56
Total asset turnover 1.36 1.36 1.34 1.41 1.47 1.69 1.62 1.57 1.54 1.49 1.44 1.35 1.27 1.23 1.22 1.21 1.34 1.39 1.32 1.27

Quanex Building Products' fixed asset turnover ratio has shown a declining trend over the past few quarters, indicating a decrease in the efficiency of generating sales from its fixed assets. However, the current ratio of 4.37 on Jan 31, 2024, still reflects that the company is generating $4.37 in sales for every dollar invested in fixed assets.

In contrast, the total asset turnover ratio has been relatively stable, with slight fluctuations, suggesting that the company is efficiently utilizing its total assets to generate sales. The ratio of 1.36 on Jan 31, 2024, implies that Quanex Building Products is generating $1.36 in sales for every dollar of total assets.

Overall, while the fixed asset turnover ratio has seen a decline, the total asset turnover ratio has remained steady, indicating that Quanex Building Products may need to focus on optimizing the productivity of its fixed assets to improve overall operational efficiency and profitability.