Gibraltar Industries Inc (ROCK)
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 | 6.93 | 7.08 | 7.41 | 7.31 | 8.43 | 7.20 | 6.43 | 6.03 | 6.29 | 5.37 | 5.49 | 5.74 | 5.96 | 6.29 | 6.86 | 7.83 | 7.90 | 8.29 | 8.23 | 7.45 |
| Receivables turnover | 7.73 | 6.46 | 5.26 | 5.96 | 6.14 | 5.32 | 5.12 | 5.93 | 6.40 | 5.12 | 5.04 | 5.57 | 5.67 | 4.87 | 5.32 | 5.53 | 5.22 | 4.88 | 4.95 | 5.37 |
| Payables turnover | 8.15 | 5.99 | 7.07 | 7.90 | 11.03 | 6.31 | 6.60 | 7.98 | 10.05 | 6.97 | 6.78 | 6.75 | 6.09 | 5.93 | 5.42 | 6.20 | 5.76 | 4.91 | 5.57 | 6.42 |
| Working capital turnover | 3.30 | 3.98 | 4.46 | 5.15 | 5.82 | 7.00 | 8.02 | 7.24 | 6.66 | 5.49 | 6.14 | 6.93 | 8.37 | 7.39 | 10.63 | 11.83 | 8.38 | 4.68 | 5.43 | 6.54 |
Gibraltar Industries Inc's inventory turnover ratio has shown a decreasing trend over the periods analyzed, indicating that the company is taking longer to sell its inventory. This could suggest potential inefficiencies in inventory management or changing market demand patterns.
The receivables turnover ratio fluctuated throughout the periods but generally remained stable. This implies that the company is efficiently collecting its accounts receivable, with variations possibly reflecting seasonal factors or changes in credit policies.
In contrast, the payables turnover ratio exhibited significant volatility, with periods of both increase and decrease. A rising turnover ratio could indicate that the company is paying its suppliers more quickly, possibly to take advantage of early payment discounts, while a declining ratio may suggest delays in payments or changes in supplier relationships.
The working capital turnover ratio also displayed fluctuations, with a general downward trend. This may indicate that the company's working capital is being less effectively utilized to generate sales, which could be a cause for concern regarding the company's operational efficiency and capital management.
Overall, while the analysis of activity ratios provides insights into different aspects of Gibraltar Industries Inc's operations, further investigation into the underlying reasons for these trends and changes is recommended to gain a more comprehensive understanding of the company's financial performance.
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 | 52.69 | 51.52 | 49.26 | 49.95 | 43.30 | 50.72 | 56.75 | 60.55 | 58.04 | 68.00 | 66.47 | 63.57 | 61.27 | 58.05 | 53.24 | 46.59 | 46.23 | 44.00 | 44.33 | 48.96 |
| Days of sales outstanding (DSO) | days | 47.23 | 56.53 | 69.35 | 61.22 | 59.49 | 68.67 | 71.35 | 61.52 | 57.02 | 71.34 | 72.44 | 65.49 | 64.41 | 74.87 | 68.65 | 65.94 | 69.99 | 74.77 | 73.81 | 67.94 |
| Number of days of payables | days | 44.78 | 60.89 | 51.60 | 46.20 | 33.10 | 57.82 | 55.30 | 45.74 | 36.31 | 52.39 | 53.87 | 54.05 | 59.90 | 61.56 | 67.30 | 58.84 | 63.36 | 74.38 | 65.53 | 56.83 |
The activity ratios of Gibraltar Industries Inc provide insights into how efficiently the company manages its operations.
1. Days of Inventory on Hand (DOH):
- The DOH measures the number of days it takes for the company to sell its entire inventory.
- The trend shows an increase in DOH from 48.96 days on March 31, 2020, to 52.69 days on December 31, 2024.
- A higher DOH could indicate slow-moving inventory or potential inventory management issues.
2. Days of Sales Outstanding (DSO):
- The DSO indicates the average number of days it takes for the company to collect its accounts receivable.
- The DSO fluctuated over the period, from 65.94 days on March 31, 2021, to 47.23 days on December 31, 2024.
- A decreasing DSO suggests improved collection efficiency, while an increasing DSO may signal credit or collection problems.
3. Number of Days of Payables:
- This ratio represents the average number of days it takes for the company to pay its suppliers.
- The trend shows a decrease in days of payables from 56.83 days on March 31, 2020, to 44.78 days on December 31, 2024.
- A decreasing trend in days of payables could indicate more timely payments to suppliers but may also indicate cash flow constraints.
Overall, monitoring these activity ratios can help stakeholders assess the company's efficiency in managing inventory, collecting receivables, and paying suppliers, providing valuable insights into its operational performance 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 | 11.92 | 12.16 | 12.60 | 12.75 | 12.80 | 12.91 | 12.85 | 12.68 | 12.68 | 13.42 | 13.75 | 14.02 | 13.83 | 13.20 | 12.50 | 12.05 | 11.53 | 10.46 | 10.11 | 9.66 |
| Total asset turnover | 0.92 | 0.94 | 0.99 | 1.04 | 1.10 | 1.06 | 1.10 | 1.13 | 1.15 | 1.06 | 1.07 | 1.10 | 1.10 | 1.03 | 1.01 | 0.96 | 0.85 | 0.90 | 0.92 | 0.94 |
Based on the provided data, we can analyze Gibraltar Industries Inc's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios.
1. Fixed Asset Turnover Ratio:
- The Fixed Asset Turnover ratio measures how efficiently the company generates sales from its investment in fixed assets.
- Gibraltar Industries Inc's Fixed Asset Turnover ratio has been steadily increasing from 9.66 in March 31, 2020, to 11.92 in December 31, 2024, with some fluctuations in between.
- The increasing trend indicates that the company is becoming more efficient in utilizing its fixed assets to generate sales over the long term, peaking at 13.83 in December 31, 2021, before slightly declining.
2. Total Asset Turnover Ratio:
- The Total Asset Turnover ratio indicates how effectively the company utilizes its total assets to generate revenue.
- Gibraltar Industries Inc's Total Asset Turnover ratio has shown fluctuations over the years, varying from 0.85 in December 31, 2020, to 1.15 in December 31, 2022.
- The ratio peaked in December 31, 2022, indicating that the company efficiently generated sales relative to its total assets during that period.
- The ratio then declined slightly to 0.92 by the end of December 31, 2024, reflecting a decrease in the effectiveness of asset utilization compared to the previous year.
In conclusion, while the Fixed Asset Turnover ratio of Gibraltar Industries Inc has shown a more consistent improvement over time, the Total Asset Turnover ratio has exhibited more variability. It is essential for the company to maintain or enhance these ratios to ensure continued efficiency in utilizing its assets to drive revenue growth.