PPG Industries Inc (PPG)
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 | 5.17 | 4.72 | 4.68 | 4.61 | 5.05 | 4.89 | 4.35 | 4.23 | 4.88 | 4.63 | 4.46 | 4.41 | 4.74 | 4.33 | 4.06 | 4.23 | 4.48 | 4.63 | 4.63 | 4.57 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 10.27 | 6.18 | 7.07 | 6.66 | 7.68 | 7.37 | 6.75 | 5.33 | 7.20 | 6.89 | 6.78 | 7.02 | 8.42 | 8.91 | 8.01 | 6.46 | 6.98 | 5.76 | 7.54 | 7.96 |
Analysis of PPG Industries Inc Activity Ratios
1. Inventory Turnover:
- PPG's inventory turnover has been relatively stable over the period, ranging from 4.06 to 5.17.
- The company manages its inventory efficiently, with a higher turnover indicating better sales performance.
2. Receivables Turnover:
- Data on receivables turnover is not available, indicating that the company may not disclose this information or does not have significant accounts receivable activity.
3. Payables Turnover:
- Similar to receivables turnover, payables turnover data is not provided, suggesting limited insights into the company's ability to manage its accounts payable.
4. Working Capital Turnover:
- Working capital turnover has shown some fluctuations but generally remained above 5.00, indicating effective utilization of working capital to generate sales.
- The ratios have shown variability, possibly influenced by changes in the company's operations or market conditions.
In conclusion, PPG Industries Inc demonstrates efficient management of inventory and working capital based on the available activity ratios. However, the lack of data on receivables and payables turnover limits a comprehensive analysis of the company's overall working capital cycle. Further disclosure in these areas would provide a more holistic view of PPG's operational efficiency.
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 | 70.55 | 77.40 | 77.98 | 79.23 | 72.25 | 74.67 | 83.87 | 86.29 | 74.74 | 78.82 | 81.75 | 82.80 | 77.04 | 84.33 | 90.01 | 86.24 | 81.43 | 78.77 | 78.79 | 79.94 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for PPG Industries Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- DOH is a measure of how many days, on average, a company holds its inventory before selling it.
- Over the analyzed periods, PPG Industries Inc has shown fluctuations in its DOH metric, ranging from a low of 70.55 days to a high of 90.01 days.
- A decreasing trend in DOH can indicate efficient inventory management, while an increasing trend may suggest possible overstocking or slowing sales.
- PPG Industries Inc should aim to strike a balance in managing its inventory levels to optimize working capital and minimize carrying costs.
2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes a company to collect revenues after a sale is made.
- The data provided does not include information on DSO for PPG Industries Inc, possibly indicating that the company's credit sales are not significant or the data has not been disclosed.
- Monitoring DSO is crucial to assess the effectiveness of the company's credit policies and collection efforts.
3. Number of Days of Payables:
- The absence of data on the number of days of payables for PPG Industries Inc suggests that specific information on the company's payment terms and relationships with suppliers is not available in the provided dataset.
- Analyzing payables turnover can provide insights into the company's liquidity, cash flow management, and supplier relationships.
In conclusion, while the DOH information highlights the management of inventory levels by PPG Industries Inc, the lack of data on DSO and payables hinders a comprehensive assessment of the company's efficiency in managing accounts receivable and payables. Monitoring these activity ratios can provide valuable insights into PPG's operational performance and working capital management.
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 | — | — | — | — | — | 4.27 | 5.24 | 5.28 | 5.30 | 5.62 | 5.46 | 5.19 | 4.88 | 3.85 | 3.60 | 4.70 | 4.42 | 4.75 | 4.85 | 5.20 |
| Total asset turnover | 0.82 | 0.82 | 0.83 | 0.83 | 0.84 | 0.84 | 0.83 | 0.80 | 0.85 | 0.85 | 0.81 | 0.94 | 0.79 | 0.91 | 0.86 | 0.87 | 0.71 | 0.75 | 0.76 | 0.82 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. For PPG Industries Inc, the trend in the fixed asset turnover ratio has been fluctuating over the years. The ratio was relatively high in the earlier periods, indicating that the company was effectively utilizing its fixed assets to generate revenue. However, there was a noticeable decline in the ratio in the latter half of 2021 and into 2022, suggesting a potential decrease in the efficiency of using fixed assets to generate sales.
On the other hand, the total asset turnover ratio indicates the company's ability to generate sales from its total assets. The trend for PPG Industries Inc shows some variability but overall remains stable. The ratio has shown periods of increase and decrease, suggesting fluctuations in the company's ability to generate sales relative to its total asset base.
Overall, based on the long-term activity ratios, PPG Industries Inc may need to focus on improving its efficiency in utilizing fixed assets to generate sales, especially considering the recent decline in the fixed asset turnover ratio trend. Additionally, maintaining a stable total asset turnover ratio indicates that the company is effectively utilizing its total assets to generate revenue.