Resideo Technologies Inc (REZI)
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 | 3.95 | 3.91 | 3.80 | 4.87 | 4.84 | 4.70 | 4.61 | 4.63 | 4.73 | 4.74 | 4.56 | 4.67 | 5.79 | 6.06 | 6.17 | 5.75 | 5.59 | 5.97 | 5.92 | 5.65 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 4.89 | 4.72 | 4.78 | 4.78 | 5.12 | 5.46 | 5.76 | 6.25 | 6.66 | 6.90 | 6.81 | 7.48 | 5.58 | 6.04 | 6.82 | 6.86 | 7.38 | 17.53 | 26.18 | 20.80 |
The inventory turnover ratio for Resideo Technologies Inc has fluctuated over the years, indicating how efficiently the company is managing its inventory. The ratio has generally been above 5, which suggests that the company is effective in selling its inventory and replenishing it. However, there has been a slight decline in the inventory turnover ratio from a high of 6.17 in June 2021 to 3.95 in December 2024, which may indicate a slowdown in sales or potential inventory management issues.
On the other hand, the receivables turnover and payables turnover ratios are not available, which limits the ability to assess the efficiency of the company's accounts receivable and accounts payable management.
The working capital turnover ratio shows how effectively the company is utilizing its working capital to generate sales. The trend in this ratio for Resideo Technologies Inc has been decreasing over the years, from a high of 26.18 in June 2020 to 4.89 in December 2024. This declining trend suggests that the company may be becoming less efficient in using its working capital to drive sales revenue.
In conclusion, while the inventory turnover ratio for Resideo Technologies Inc indicates effective inventory management, the declining trend in the working capital turnover ratio warrants further analysis to understand the company's overall efficiency in utilizing 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 | 92.48 | 93.40 | 96.13 | 74.99 | 75.35 | 77.59 | 79.19 | 78.83 | 77.23 | 76.99 | 80.02 | 78.15 | 63.03 | 60.20 | 59.20 | 63.51 | 65.27 | 61.10 | 61.62 | 64.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Resideo Technologies Inc's activity ratios, we can analyze the Days of Inventory on Hand (DOH). The DOH indicates the average number of days the company holds inventory before it is sold. From March 31, 2020, to December 31, 2024, Resideo's DOH fluctuated between 59.20 days and 96.13 days. Notably, there was an upward trend in the most recent periods, reaching a high of 96.13 days on June 30, 2024. This suggests that Resideo may be experiencing challenges in managing its inventory efficiently, potentially leading to excess stock levels or slower sales turnover.
Unfortunately, the data for Days of Sales Outstanding (DSO) and Number of Days of Payables is not provided, making it challenging to perform a comprehensive analysis of working capital management and liquidity. However, DSO measures how long it takes for the company to collect payments from its customers, while the Number of Days of Payables quantifies how long it takes for the company to pay its suppliers. Monitoring these ratios is crucial for understanding cash flow cycles and operational efficiency.
In conclusion, Resideo Technologies Inc's inventory management based on the DOH ratio shows some inconsistencies and may require closer attention to optimize working capital and enhance overall financial performance. Additionally, detailed information on DSO and payables would provide a more thorough assessment of the company's liquidity position and operational effectiveness.
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 | — | — | — | — | — | 10.86 | 16.31 | 16.92 | 17.40 | 17.85 | 16.92 | 16.95 | 20.37 | 20.32 | 18.94 | 17.30 | 15.95 | 15.67 | 10.77 | 11.43 |
| Total asset turnover | 0.82 | 0.79 | 0.77 | 0.95 | 0.94 | 0.97 | 0.97 | 1.00 | 1.00 | 1.00 | 0.97 | 0.95 | 1.00 | 1.01 | 1.01 | 0.95 | 0.90 | 0.93 | 0.92 | 0.94 |
The fixed asset turnover ratio for Resideo Technologies Inc has shown fluctuations over the years, starting at 11.43 in March 2020, peaking at 20.37 in December 2021, and then declining to 16.31 in June 2023 and further dropping to 10.86 in September 2023. This ratio indicates how efficiently the company is generating revenue from its fixed assets.
On the other hand, the total asset turnover ratio, which measures the efficiency of the company in generating sales from all assets, has also been variable. Starting at 0.94 in March 2020, the ratio increased to 1.01 by June 2021, remained at around 1.00 until December 2022 before declining to 0.77 in June 2024.
These ratios suggest that Resideo Technologies Inc has been effective in utilizing its fixed assets to generate revenue, although there have been some recent declines in efficiency. The overall efficiency in generating sales from all assets has fluctuated, showing periods of improvement followed by declines. Tracking these ratios can help assess the company's operational efficiency and asset utilization over time.