Rogers Corporation (ROG)

Short-term

Turnover ratios

Rogers Corp.'s activity ratios provide insights into the efficiency of its operations.

1. Inventory Turnover:
The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a specific period. Rogers Corp.'s inventory turnover has shown a declining trend from 2019 to 2022 but recovered slightly in 2023. This suggests that the company is taking longer to sell its inventory, which may tie up capital and increase holding costs.

2. Receivables Turnover:
The receivables turnover ratio reflects how efficiently a company collects on credit sales. Rogers Corp.'s receivables turnover has been relatively consistent over the years, indicating that the company efficiently collects payments from customers. A higher turnover ratio suggests effective management of accounts receivable.

3. Payables Turnover:
The payables turnover ratio measures how quickly a company pays its suppliers. Rogers Corp.'s payables turnover has fluctuated over the years but generally remained at a moderate level. A higher turnover ratio indicates that the company is paying its suppliers more frequently, potentially benefiting from early payment discounts.

4. Working Capital Turnover:
The working capital turnover ratio shows how well a company utilizes its working capital to generate sales. Rogers Corp.'s working capital turnover has varied over the years, indicating changes in the efficiency of its working capital utilization. A higher turnover ratio suggests effective management of working capital resources.

In conclusion, Rogers Corp.'s activity ratios reflect different aspects of its operational efficiency, from inventory management to working capital utilization. Analyzing these ratios can help stakeholders assess the company's ability to generate sales, collect receivables, manage payables, and optimize working capital levels.

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Average number of days

Rogers Corp.'s activity ratios provide insight into how efficiently the company is managing its inventory, collecting accounts receivable, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- The company's DOH has fluctuated over the years, reaching its peak in 2022 at 102.40 days and slightly decreasing to 93.18 days in 2023. This indicates that, on average, Rogers Corp. holds inventory for about 93 days before it is sold. A lower DOH is generally preferred as it signifies faster inventory turnover.

2. Days of Sales Outstanding (DSO):
- Rogers Corp.'s DSO has also varied, with the number of days to collect receivables increasing from 51.43 days in 2019 to 66.78 days in 2023. A higher DSO suggests that the company is taking longer to collect payments from customers, impacting its cash flow and liquidity.

3. Number of Days of Payables:
- The days of payables for the company have shown inconsistency, with 30.53 days in 2023, an increase from the previous years. This ratio indicates that Rogers Corp. is taking over 30 days on average to pay its suppliers, which may be beneficial in managing cash flow but could also strain supplier relationships if payments are delayed excessively.

Overall, Rogers Corp. may need to focus on improving inventory management to reduce DOH, enhancing collection efforts to decrease DSO, and possibly reviewing payment terms with suppliers to maintain a balanced approach to managing its working capital effectively.

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Long-term

The fixed asset turnover ratio for Rogers Corp. has exhibited a declining trend over the past five years, decreasing from 3.45 in 2019 to 2.48 in 2023. This indicates that the company generated less revenue for each dollar invested in fixed assets during this period.

In contrast, the total asset turnover ratio has shown relatively stable fluctuations, with a slight decrease from 0.71 in 2019 to 0.60 in 2023. This suggests that the company has been less efficient in utilizing its total assets to generate sales revenue in recent years.

Overall, based on the long-term activity ratios of Rogers Corp., there has been a decrease in the efficiency of both fixed and total asset turnover, indicating potential operational challenges or changes in the company's business model that may require further analysis and consideration by stakeholders.