Quanex Building Products (NX)

Activity ratios

Short-term

Turnover ratios

Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 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
Inventory turnover 4.31 9.66 9.55 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
Receivables turnover 3.27 12.40 12.67 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
Payables turnover 9.55 14.97 15.99 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
Working capital turnover 3.77 6.26 7.61 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

The inventory turnover ratio of Quanex Building Products has been fluctuating over the past few periods, ranging from a low of 4.31 to a high of 10.77. Overall, the company's inventory turnover has shown a generally increasing trend, indicating that the company is managing its inventory more efficiently.

The receivables turnover ratio of Quanex Building Products has also varied significantly over the periods provided, with values ranging from 3.27 to 14.34. The company experienced a notable increase in receivables turnover in some periods, suggesting that it is collecting its accounts receivable more quickly.

In terms of payables turnover, Quanex Building Products has generally maintained a stable performance, with ratios ranging from 8.52 to 17.70. The company's ability to pay off its accounts payable has been relatively consistent, with some fluctuations observed over time.

The working capital turnover ratio of Quanex Building Products has also displayed variability, ranging from 3.77 to 11.78. This ratio reflects the company's ability to generate sales revenue relative to its working capital levels, with higher values indicating more efficient utilization of working capital.

Overall, Quanex Building Products has demonstrated varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the periods analyzed. By monitoring these activity ratios, stakeholders can gain insights into the company's operational effectiveness and financial performance.

Average number of days

Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 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
Days of inventory on hand (DOH) days 84.64 37.79 38.21 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
Days of sales outstanding (DSO) days 111.47 29.43 28.82 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
Number of days of payables days 38.21 24.38 22.83 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

Quanex Building Products' activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): Quanex Building Products shows a fluctuating trend in managing its inventory levels over the reporting periods. The company's DOH has increased from 33.90 days to 84.64 days, indicating that it took longer to sell its inventory at the end of the period. This rise may suggest challenges in inventory management and potential risks of obsolescence or carrying costs.

2. Days of Sales Outstanding (DSO): The DSO ratio for Quanex Building Products has been volatile, with significant variations across the reporting periods. A high DSO indicates that the company is taking longer to collect its accounts receivable, which can impact cash flow and working capital management. Notably, the DSO has increased from 25.45 days to 111.47 days, signaling potential issues with credit policies or collection efficiency.

3. Number of Days of Payables: Quanex Building Products has also experienced fluctuations in the number of days of payables outstanding. The trend shows variability in the company's payment terms with suppliers. An increasing trend in payables days, from 20.62 days to 38.21 days, could indicate delays in paying suppliers, which might strain supplier relationships or signal financial distress if intentional stretching of payables is not managed effectively.

In conclusion, the activity ratios of Quanex Building Products highlight areas where the company may need to focus on improving efficiency in inventory management, accounts receivable collections, and payables management to optimize its working capital and overall operational performance.

Long-term

Oct 31, 2024 Jul 31, 2024 Apr 30, 2024 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
Fixed asset turnover 3.17 4.31 4.36 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
Total asset turnover 0.55 1.24 1.32 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

Quanex Building Products' fixed asset turnover ratio has been relatively stable over the past few years, ranging from 3.17 to 6.87. This indicates that the company is generating between $3.17 to $6.87 in sales for every dollar invested in fixed assets. The trend shows a gradual increase in efficiency in utilizing fixed assets to generate revenue.

In contrast, the total asset turnover ratio has shown more variability, ranging from 0.55 to 1.69. This suggests that the company's ability to generate sales from all assets (both fixed and current) has fluctuated over time. Despite the fluctuations, the total asset turnover has generally increased over the years, indicating improved efficiency in utilizing all assets to generate revenue.

Overall, the analysis of Quanex Building Products' long-term activity ratios reveals an increasing trend in asset turnover efficiency, both in terms of fixed assets and total assets. This indicates effective management of resources and a focus on maximizing revenue generation relative to asset investment.