NXP Semiconductors NV (NXPI)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	2.33	2.68	3.19	4.20	4.25
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	3.00	3.54	3.60	3.99	3.73

NXP Semiconductors NV's inventory turnover has shown a declining trend over the years, decreasing from 4.25 in 2020 to 2.33 in 2024. This indicates that the company is taking longer to sell its inventory, which could potentially lead to excess or obsolete inventory levels.

The receivables turnover ratio is not available for all the years specified, suggesting that the company may not be efficiently collecting its accounts receivable or has a different business model that requires detailed analysis to understand.

Similarly, the payables turnover ratio data is not provided for any of the years, making it difficult to assess how quickly the company is paying its suppliers.

Regarding the working capital turnover, it has also decreased from 3.73 in 2020 to 3.00 in 2024. This ratio indicates how efficiently the company is using its working capital to generate sales. The decrease in this ratio over the years may suggest a reduction in sales efficiency or an increase in working capital requirements.

Overall, based on the activity ratios provided, NXP Semiconductors NV appears to be facing challenges in managing its inventory efficiently and maintaining optimal working capital turnover. Further analysis and comparisons with industry benchmarks would be necessary to fully evaluate the company's performance in these areas.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	156.49	136.10	114.35	86.87	85.89
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

The activity ratios of NXP Semiconductors NV reflect the company's efficiency in managing its inventory and collections from customers, as well as its payment cycle to suppliers.

1. Days of Inventory on Hand (DOH):
- The company's DOH has shown a trend of increase from 85.89 days in 2020 to 156.49 days in 2024. This indicates that NXP Semiconductors has been holding inventory for an increasing period of time over the years, which may suggest inefficiencies in inventory management, potential excess inventory levels, or challenges in sales trends matching production levels.

2. Days of Sales Outstanding (DSO):
- The data provided did not specify the DSO for NXP Semiconductors for the years under review. Typically, the DSO ratio measures how long it takes for a company to collect payments from its customers. A lower DSO is usually preferred as it indicates faster collection of receivables and better liquidity.

3. Number of Days of Payables:
- The data did not provide information on the number of days of payables for NXP Semiconductors. Nonetheless, analyzing the payables period is crucial for understanding the company's payment practices to its suppliers. A longer payable period may indicate better cash flow management but could potentially strain relationships with suppliers if stretched too far.

In conclusion, the increasing trend in Days of Inventory on Hand for NXP Semiconductors warrants attention as it may signal potential inefficiencies in managing inventory levels, which could impact the company's overall performance and profitability in the long run.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	4.91	4.20	3.75
Total asset turnover	0.52	0.55	0.57	0.53	0.43

NXP Semiconductors NV's long-term activity ratios paint a picture of the efficiency with which the company utilizes its assets.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio has been showing an increasing trend from 3.75 in 2020 to 4.20 in 2021 and further to 4.91 in 2022. This indicates that the company is generating more revenue for each dollar invested in fixed assets over the years.
- However, there is missing data for 2023 and 2024, so it is difficult to assess the trend for those years. It would be important to fill in those gaps for a more comprehensive analysis.

2. Total Asset Turnover:
- The total asset turnover ratio has also been improving, from 0.43 in 2020 to 0.53 in 2021, 0.57 in 2022, then declining slightly to 0.55 in 2023, and further dropping to 0.52 in 2024.
- This indicates that the company's ability to generate sales from its total assets reached its peak in 2022 but slightly decreased in subsequent years.

In general, the increasing trend in the fixed asset turnover ratio up to 2022 indicates that NXP Semiconductors NV has been more efficient in generating revenue from its investments in fixed assets. However, the declining trend in total asset turnover after 2022 suggests a slight reduction in the ability to generate sales from all assets. It would be essential to monitor these ratios in the coming years to understand the company's asset utilization efficiency better.