Owens Corning Inc (OC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.04 | 3.65 | 3.45 | 4.42 | 4.55 | 4.38 | 4.26 | 4.14 | 4.14 | 5.02 | 5.11 | 5.38 | 5.48 | 5.96 | 6.16 | 6.00 | 5.79 | 6.00 | 5.58 | 5.18 |
| Receivables turnover | 8.75 | 6.57 | 5.83 | 6.79 | 9.73 | 7.32 | 6.77 | 6.92 | 10.01 | 7.26 | 6.74 | 6.30 | 8.91 | 7.16 | 6.41 | 6.21 | 7.54 | 6.71 | 6.90 | 7.62 |
| Payables turnover | 5.60 | 4.16 | 3.88 | 4.53 | 4.48 | 4.65 | 4.57 | 4.46 | 4.11 | 5.02 | 4.83 | 4.64 | 5.40 | — | — | — | 5.65 | — | — | — |
| Working capital turnover | 10.07 | 8.77 | 9.82 | 5.59 | 6.03 | 4.48 | 4.88 | 5.78 | 6.62 | 6.10 | 5.34 | 6.14 | 5.97 | 5.60 | 5.28 | 5.70 | 5.94 | 5.32 | 5.62 | 7.86 |
Based on the provided data, let's analyze Owens Corning Inc's activity ratios:
1. Inventory Turnover:
- The inventory turnover ratio has fluctuated over the years, ranging from 3.45 to 6.16.
- The highest inventory turnover was observed in June 30, 2021, while the lowest was in June 30, 2024.
- The company's ability to sell through its inventory has been fairly stable, with a slight decrease towards the end of the period.
2. Receivables Turnover:
- Owens Corning Inc's receivables turnover ratio has varied between 5.83 and 10.01.
- The highest turnover was recorded in December 31, 2022, while the lowest was in June 30, 2024.
- The company's efficiency in collecting outstanding receivables improved notably in the fourth quarter of 2022.
3. Payables Turnover:
- Payables turnover data is missing for the initial periods, but it has ranged between 3.88 and 5.60.
- The highest turnover was observed in December 31, 2024, while the lowest was in June 30, 2024.
- The company's management of its payables has been relatively stable throughout the period analyzed.
4. Working Capital Turnover:
- The working capital turnover ratio has fluctuated between 4.48 and 10.07.
- The highest turnover was seen in December 31, 2024, while the lowest was in September 30, 2023.
- Owens Corning Inc's ability to generate revenue relative to its working capital has shown significant variation, with a notable increase in the last quarter of 2024.
In general, the activity ratios of Owens Corning Inc indicate some variability in its operational efficiency over the years, with certain quarters showing improvements while others experienced declines. Monitoring these ratios can provide insights into the company's overall operational performance and effectiveness in managing its resources.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 72.35 | 100.01 | 105.76 | 82.55 | 80.23 | 83.26 | 85.71 | 88.27 | 88.11 | 72.76 | 71.37 | 67.89 | 66.57 | 61.27 | 59.26 | 60.83 | 63.07 | 60.87 | 65.39 | 70.43 |
| Days of sales outstanding (DSO) | days | 41.71 | 55.55 | 62.61 | 53.79 | 37.53 | 49.87 | 53.92 | 52.76 | 36.47 | 50.24 | 54.13 | 57.89 | 40.98 | 51.00 | 56.95 | 58.81 | 48.41 | 54.36 | 52.92 | 47.90 |
| Number of days of payables | days | 65.19 | 87.79 | 94.15 | 80.63 | 81.44 | 78.46 | 79.92 | 81.88 | 88.84 | 72.65 | 75.53 | 78.60 | 67.62 | — | — | — | 64.55 | — | — | — |
Based on the provided data for Owens Corning Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- Owens Corning's DOH has fluctuated over the years, ranging from a low of 59.26 days to a high of 105.76 days.
- Generally, a decreasing trend in DOH is preferred as it indicates efficient inventory management.
- However, there was a significant spike in DOH during June 30, 2024, suggesting potential issues with inventory control or slowing sales.
2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for the company to collect payment after a sale.
- Owens Corning's DSO ranged from a low of 36.47 days to a high of 62.61 days.
- A lower DSO is generally better as it implies quicker cash conversion from sales.
- The company showed a decreasing trend in DSO until December 31, 2023, after which it increased, potentially indicating slower collection of accounts receivable.
3. Number of Days of Payables:
- This ratio indicates the average number of days the company takes to pay its suppliers.
- Owens Corning's payables days ranged from 65.19 days to 94.15 days.
- A longer payable period can imply better cash flow management but may strain supplier relationships.
- The company's payables days saw fluctuations, with an overall increasing trend over the years, suggesting potential delays or stretched payment terms.
In conclusion, Owens Corning Inc's activity ratios highlight areas that may warrant further attention, such as inventory management, accounts receivable collection efficiency, and payables management to optimize working capital and cash flow. Monitoring and addressing fluctuations in these ratios can help improve the company's operational efficiency and financial health.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 2.61 | 2.26 | 2.11 | 2.52 | 2.50 | 2.58 | 2.57 | 2.56 | 2.58 | 2.59 | 2.49 | 2.30 | 2.16 | 2.17 | 2.07 | 1.93 | 1.82 | 1.84 | 1.83 | 1.89 |
| Total asset turnover | 0.77 | 0.69 | 0.65 | 0.85 | 0.85 | 0.86 | 0.87 | 0.89 | 0.89 | 0.88 | 0.87 | 0.85 | 0.84 | 0.82 | 0.79 | 0.76 | 0.73 | 0.73 | 0.73 | 0.78 |
Owens Corning Inc's Fixed Asset Turnover ratio has exhibited an upward trend from March 2020 to December 2024, indicating that the company is generating more sales revenue per dollar invested in fixed assets. The ratio increased steadily from 1.89 in March 2020 to a peak of 2.61 in December 2024, with minor fluctuations along the way.
On the other hand, the Total Asset Turnover ratio has been more volatile, fluctuating within a range from 0.65 to 0.89 over the same period. This ratio measures how efficiently the company is utilizing its total assets to generate sales. The ratio experienced peaks and troughs but generally showed an increasing trend from March 2020 to June 2022 before declining somewhat by December 2024.
Overall, both ratios provide insights into Owens Corning's ability to utilize its assets efficiently to generate sales. The increasing trend in Fixed Asset Turnover suggests improved efficiency in utilizing fixed assets, while the more volatile Total Asset Turnover ratio reflects fluctuations in the company's overall asset utilization efficiency over the analyzed period.