Owens Corning Inc (OC)
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 | 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 | 5.37 | 5.39 | 5.20 | 4.90 |
| Receivables turnover | 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 | 9.30 | 7.36 | 7.23 | 6.76 |
| Payables turnover | 4.48 | 4.65 | 4.57 | 4.46 | 4.11 | 5.02 | 4.83 | 4.64 | 5.40 | — | — | — | 5.65 | — | — | — | 6.81 | — | — | — |
| Working capital turnover | 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 | 9.78 | 8.28 | 7.80 | 6.65 |
Owens Corning's activity ratios provide insight into how efficiently the company is managing its inventory, receivables, payables, and working capital.
1. Inventory turnover: Owens Corning's inventory turnover has been relatively stable over the past eight quarters, ranging from 5.34 to 5.84. This indicates that the company is efficiently managing its inventory by selling and replacing it approximately 5 to 6 times during a year.
2. Receivables turnover: The receivables turnover for Owens Corning has varied significantly, with a high of 10.16 in Q4 2022 and a low of 6.40 in Q1 2022. Overall, the company is collecting its receivables efficiently, with an average turnover of around 7 to 9 times per year.
3. Payables turnover: Owens Corning's payables turnover has been relatively stable, ranging from 4.92 to 6.05 over the past eight quarters. This indicates that the company is managing its payables effectively by paying suppliers approximately 5 to 6 times a year.
4. Working capital turnover: The company's working capital turnover has also shown some fluctuations but has generally been consistent, with values ranging from 4.55 to 6.72. This ratio reflects how efficiently Owens Corning is using its working capital to generate sales, with an average turnover of around 5 to 6 times per year.
In conclusion, Owens Corning's activity ratios suggest that the company is effectively managing its inventory, receivables, payables, and working capital to support its operations and generate sales. The relatively stable turnover ratios indicate consistency in the company's operational efficiency over the past two years.
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 | 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 | 67.92 | 67.74 | 70.17 | 74.53 |
| Days of sales outstanding (DSO) | days | 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 | 39.25 | 49.58 | 50.50 | 53.97 |
| Number of days of payables | days | 81.44 | 78.46 | 79.92 | 81.88 | 88.84 | 72.65 | 75.53 | 78.60 | 67.62 | — | — | — | 64.55 | — | — | — | 53.59 | — | — | — |
The activity ratios for Owens Corning present a mixed performance over the past eight quarters.
- Days of Inventory on Hand (DOH): The company has shown a gradual decrease in the days of inventory on hand from Q1 2023 to Q4 2023, indicating efficient management in turning inventory into sales. However, the DOH remains relatively high compared to previous periods, with a peak in Q2 2023.
- Days of Sales Outstanding (DSO): Owens Corning's days of sales outstanding have fluctuated significantly over the quarters. There was a notable decrease from Q3 to Q4 2022, followed by a slight increase in Q1 2023, indicating a possible delay in collecting sales revenue. Subsequently, the DSO improved in Q2 and Q3 2023 but increased again in Q4 2023, suggesting a potential slowdown in the collection of accounts receivable.
- Number of Days of Payables: The number of days of payables has varied over the quarters, with a general trend of decreasing from Q1 2023 to Q3 2023, indicating a potential improvement in the company's payment terms with suppliers. However, there was a slight increase in Q4 2023, which may indicate a delay in payment to suppliers.
Overall, Owens Corning's activity ratios suggest some room for improvement in managing inventory levels, collections from customers, and payment to suppliers to optimize working capital and operational efficiency. Monitoring these ratios closely and implementing strategies to streamline these processes could help enhance the company's financial performance.
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 | 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 | 1.86 | 1.91 | 1.87 | 1.86 |
| Total asset turnover | 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 | 0.72 | 0.72 | 0.70 | 0.69 |
The long-term activity ratios of Owens Corning, as represented by the fixed asset turnover and total asset turnover, have exhibited some fluctuations over the past eight quarters.
The fixed asset turnover, which indicates how efficiently the company utilizes its fixed assets to generate sales, has ranged from 2.33 to 2.62 during this period. In Q4 2023, the fixed asset turnover stood at 2.52, showing a slight decrease compared to the previous quarter's ratio of 2.62. Despite some variability, Owens Corning has generally maintained a relatively stable performance in terms of generating sales from its fixed assets.
On the other hand, the total asset turnover, which measures the company's ability to generate sales from all its assets, not just fixed assets, has fluctuated between 0.86 and 0.91 in the same period. In Q4 2023, the total asset turnover was 0.86, indicating a decrease from the previous quarter's ratio of 0.87. This suggests that Owens Corning may need to improve its overall asset utilization efficiency to generate more sales compared to its asset base.
Overall, while the fixed asset turnover has been more consistent, the total asset turnover has shown more variability, indicating potential room for improvement in optimizing the company's overall asset utilization efficiency. Investors and stakeholders may want to monitor these ratios to assess Owens Corning's long-term efficiency in generating sales relative to its asset base.