Rogers Corporation (ROG)

Short-term

Turnover ratios

Rogers Corp.'s activity ratios provide insight into the efficiency with which the company manages its assets and liabilities to generate sales.

1. Inventory Turnover: Rogers Corp.'s inventory turnover ratio has been relatively stable over the past few quarters, ranging between 3.56 and 3.93. This indicates that the company is able to sell and replace its inventory approximately 3-4 times a year, which is crucial for managing working capital and avoiding excess stock.

2. Receivables Turnover: The receivables turnover ratio has fluctuated, with the highest turnover in Q3 2022 and the lowest in Q3 2023. This ratio measures how quickly the company collects its receivables. The declining trend in recent quarters suggests a potential issue with collecting payments efficiently.

3. Payables Turnover: Rogers Corp.'s payables turnover ratio has been relatively consistent, indicating that the company takes approximately 8-13 days to pay its suppliers. A higher turnover ratio may suggest a more aggressive approach in managing payables to optimize cash flow.

4. Working Capital Turnover: The working capital turnover ratio has fluctuated, with the highest turnover in Q1 2022 and the lowest in Q4 2022. This ratio reflects how effectively the company utilizes its working capital to generate sales. A decreasing trend in this ratio may indicate inefficiencies in managing working capital.

Overall, analyzing these activity ratios provides valuable insights into Rogers Corp.'s operational efficiency and effectiveness in managing its assets and liabilities to support revenue generation. Further investigation into the company's specific practices and industry benchmarks can provide a more comprehensive understanding of its performance.

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Average number of days

Rogers Corp.'s activity ratios provide insight into how efficiently the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- Rogers Corp.'s DOH has been fluctuating over the past eight quarters, ranging from 91.51 days to 102.40 days.
- A decreasing trend in DOH indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient inventory management.
- However, the recent increase in DOH in Q4 2023 compared to the previous quarter suggests that Rogers Corp. might be carrying more inventory relative to its sales levels.

2. Days of Sales Outstanding (DSO):
- The DSO for Rogers Corp. has also shown variability, ranging from 62.07 days to 74.62 days.
- A higher DSO indicates that the company takes longer to collect its accounts receivable, which may impact cash flow and working capital.
- The decrease in DSO in Q4 2023 compared to Q3 2023 suggests that Rogers Corp. may have improved its collections efficiency during the period.

3. Number of Days of Payables:
- Rogers Corp.'s days of payables have been relatively stable but have shown some fluctuations over time, with a range from 27.73 days to 45.06 days.
- A higher number of days of payables suggests that the company takes longer to pay its suppliers, which can provide a source of short-term financing but may strain supplier relationships.
- The decrease in days of payables from Q2 2022 to Q1 2023 indicates that the company might be settling its payables more quickly.

In conclusion, by analyzing these activity ratios, investors and stakeholders can better understand how effectively Rogers Corp. is managing its inventory levels, collecting receivables, and handling payables. The trends in these ratios can provide valuable insights into the company's operational efficiency and potential liquidity challenges.

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Long-term

Long-term activity ratios provide insights into the efficiency with which a company is utilizing its assets to generate sales. In the case of Rogers Corp., the fixed asset turnover ratio has shown fluctuation over the past eight quarters, ranging from 2.48 to 2.73. This ratio indicates that, on average, Rogers Corp. generated sales of approximately 2.48 to 2.73 times the value of its fixed assets. The trend suggests that the company has been relatively stable in the utilization of its fixed assets to generate revenue, with some minor variations quarter to quarter.

In comparison, the total asset turnover ratio for Rogers Corp. has remained relatively steady around 0.60 over the same period. This ratio indicates that, on average, the company is generating sales equal to 0.60 times the value of its total assets. The stability of this ratio suggests that Rogers Corp. has been consistent in its overall asset utilization efficiency in generating revenue.

Overall, both the fixed asset turnover and total asset turnover ratios indicate that Rogers Corp. has been effectively utilizing its assets to generate sales. Consistency in these ratios demonstrates a certain level of operational efficiency in the company's long-term asset management and revenue generation strategies.