Resideo Technologies Inc (REZI)

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
Inventory turnover 5.64 5.53 5.41 5.43 5.81 5.81 5.60 5.75 7.12 7.49 7.70 6.94 6.44 6.81 6.75 6.87 7.25 6.17 6.06
Receivables turnover 6.37 6.28 6.02 6.46 6.30 — — — 6.61 — — — 5.86 5.50 6.71 6.00 6.04 5.80 5.86
Payables turnover 5.86 6.22 5.72 6.12 6.34 5.94 5.51 5.53 5.97 5.88 5.76 5.21 4.63 4.91 5.11 5.09 5.29 4.83 4.33
Working capital turnover 5.09 5.41 5.71 6.20 6.60 6.85 6.74 7.41 5.53 5.99 6.77 6.83 7.36 17.48 26.09 20.66 16.97 16.95 17.03

Resideo Technologies Inc's inventory turnover ratio has been relatively stable, ranging between 4.60 and 4.83 over the past eight quarters. This indicates that the company efficiently manages its inventory, with the ability to turn over its inventory approximately 4.6 to 4.8 times a year.

The receivables turnover ratio has shown consistency, fluctuating between 6.01 and 6.51 throughout the same period. This suggests that Resideo Technologies Inc collects its accounts receivables effectively, with an average turnover of approximately 6 times a year.

The payables turnover ratio has displayed a similar trend, varying from 4.49 to 5.28 over the past two years. This indicates that the company efficiently pays its suppliers, with an average turnover of about 4.9 to 5.3 times annually.

The working capital turnover ratio has decreased gradually from 7.48 in Q1 2022 to 5.13 in Q4 2023. This suggests that Resideo Technologies Inc's ability to generate sales from its working capital has declined over time.

Overall, Resideo Technologies Inc demonstrates solid efficiency in managing its inventory, receivables, and payables. However, the declining trend in the working capital turnover ratio may require further analysis to understand the underlying reasons and potential implications for the company's financial performance.

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
Days of inventory on hand (DOH) days 64.73 66.00 67.42 67.22 62.79 62.78 65.16 63.48 51.27 48.74 47.39 52.58 56.63 53.59 54.07 53.10 50.35 59.16 60.25
Days of sales outstanding (DSO) days 57.34 58.08 60.68 56.51 57.98 — — — 55.26 — — — 62.29 66.39 54.42 60.87 60.40 62.96 62.34
Number of days of payables days 62.25 58.72 63.85 59.62 57.57 61.40 66.24 65.96 61.18 62.13 63.40 70.11 78.88 74.40 71.41 71.70 69.04 75.63 84.20

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. In the case of Resideo Technologies Inc, the DOH has been relatively stable around the 75-80 days range over the past eight quarters, indicating that the company holds inventory for approximately 2.5 to 3 months before selling it.

Days of sales outstanding (DSO) reflects how quickly a company is able to collect outstanding receivables. Resideo's DSO has shown some fluctuations but generally ranges between 56 to 60 days. This suggests that the company takes around 2 months on average to collect payments from its customers.

Number of days of payables shows the average time it takes for a company to pay its suppliers. Resideo's payables days have varied between 69 to 81 days over the eight quarters under consideration. A higher number of payables days can indicate that the company is taking longer to pay its suppliers, potentially benefiting from favorable credit terms.

Overall, when looking at the activity ratios of Resideo Technologies Inc, we can observe that the company has maintained a relatively stable inventory turnover period, collection period, and payment period over the past few quarters. It is essential for the company to monitor these ratios to ensure efficient management of working capital and optimize its operational efficiency.

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
Fixed asset turnover 15.88 16.34 16.17 16.79 17.23 17.72 16.76 16.79 20.16 20.13 18.82 17.21 15.90 15.63 15.18 16.17 15.62 16.01 16.08
Total asset turnover 0.93 0.96 0.96 0.99 0.99 0.99 0.96 0.94 0.99 1.00 1.00 0.95 0.90 0.92 0.91 0.93 0.96 0.95 0.95

The fixed asset turnover ratio for Resideo Technologies Inc has been consistently high, ranging from 16.01 to 17.85 over the past eight quarters. This indicates that the company is efficient in generating sales revenue from its fixed assets, such as property, plant, and equipment. A high fixed asset turnover ratio suggests that Resideo is using its fixed assets effectively to drive sales.

On the other hand, the total asset turnover ratio has fluctuated between 0.94 and 1.00 during the same period. This ratio measures how efficiently the company is generating sales from all its assets, including both fixed and current assets. A total asset turnover ratio of less than 1.00 may indicate that Resideo is not maximizing its total assets to generate sales revenue.

Overall, the high fixed asset turnover ratio suggests strong efficiency in utilizing fixed assets, while the fluctuating total asset turnover ratio may indicate room for improvement in generating sales from all assets. It would be beneficial for Resideo to assess its asset utilization strategies to optimize overall performance.