Gibraltar Industries Inc (ROCK)

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 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 10.95 7.94 7.57 6.52
Receivables turnover 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 6.09 4.65 5.16 5.83
Payables turnover 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 9.34 6.36 7.77 7.61
Working capital turnover 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 4.32 4.70 5.39 6.52

Looking at the activity ratios of Gibraltar Industries Inc. over the past eight quarters, we can draw several insights:

1. Inventory Turnover:
- The inventory turnover ratio has been increasing steadily from Q1 2022 to Q4 2023, indicating that the company is managing its inventory efficiently.
- The current ratio of 8.43 in Q4 2023 suggests that the company is able to convert its inventory into sales approximately 8.43 times during the quarter.

2. Receivables Turnover:
- The receivables turnover ratio has shown some fluctuations but has generally remained stable over the quarters.
- The company was able to collect its receivables around 6.14 times in Q4 2023, which indicates effective management of credit and collections.

3. Payables Turnover:
- The payables turnover ratio has seen some variance, with a notable increase in Q4 2023 compared to previous quarters.
- The ratio of 11.03 in Q4 2023 implies that the company is paying its creditors approximately 11.03 times during the quarter.

4. Working Capital Turnover:
- The working capital turnover ratio depicts how effectively the company is utilizing its working capital to generate revenue.
- There has been some fluctuation in this ratio, with a peak of 8.02 in Q2 2023 and a decline in Q4 2023 to 5.82, indicating variations in working capital efficiency over the quarters.

Overall, Gibraltar Industries Inc. shows a generally positive trend in its activity ratios, implying efficient management of inventory, receivables, payables, and working capital over the analyzed period. It is crucial for the company to continue monitoring these ratios to ensure optimal operational performance and financial health.

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 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 33.34 45.99 48.23 56.00
Days of sales outstanding (DSO) days 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 59.94 78.48 70.74 62.64
Number of days of payables days 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 39.08 57.39 46.96 47.97

The activity ratios of Gibraltar Industries Inc. provide insight into the company's efficiency in managing its inventory, receivables, and payables.

1. Days of inventory on hand (DOH) decreased from 58.04 days in Q4 2022 to 43.30 days in Q4 2023. This indicates that the company is managing its inventory more efficiently by holding inventory for a shorter period, potentially leading to lower carrying costs and improved liquidity.

2. Days of sales outstanding (DSO) increased from 57.02 days in Q4 2022 to 59.49 days in Q4 2023. This suggests that the company is taking longer to collect payments from its customers, which may indicate slower sales or challenges in collecting receivables promptly.

3. The number of days of payables decreased from 36.31 days in Q4 2022 to 33.10 days in Q4 2023. A reduction in days of payables could indicate that the company is paying its suppliers more promptly, potentially maintaining good relationships with vendors but also potentially impacting cash flow.

In summary, Gibraltar Industries Inc. has improved its management of inventory but may need to focus on reducing the collection period for receivables to enhance its overall efficiency in working capital management.

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 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 11.49 9.60 9.73 10.16
Total asset turnover 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 0.91 0.93 1.03 1.12

Gibraltar Industries Inc.'s fixed asset turnover ratio demonstrates the efficiency of the company in generating sales revenue from its fixed assets over time. The trend of the fixed asset turnover ratio has been relatively stable, ranging between 12.68 and 13.75. This indicates that the company has consistently been able to generate revenue efficiently from its fixed assets.

On the other hand, the total asset turnover ratio reflects how well the company utilizes all of its assets to generate sales. The trend in total asset turnover shows some fluctuation but generally remains around 1.10. This implies that Gibraltar Industries Inc. is effectively utilizing its total assets to generate revenue, with each dollar of assets generating approximately $1.10 of sales.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that Gibraltar Industries Inc. is efficiently utilizing its assets to generate revenue, which is a positive indicator of the company's operational performance and financial health.