RPM International Inc (RPM)
Activity ratios
Short-term
Turnover ratios
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.93 | 6.16 | 6.08 | 6.02 | 5.90 | 4.95 | 4.70 | 4.81 | 5.13 | 5.03 | 5.60 | 5.65 | 5.90 | 5.80 | 6.30 | 6.64 | 6.36 | 5.74 | 5.93 | 6.07 |
| Receivables turnover | 5.08 | 6.73 | 5.86 | 5.09 | 4.76 | 5.93 | 5.25 | 4.90 | 4.62 | 5.88 | 5.30 | 5.17 | 4.70 | 5.76 | 5.23 | 4.80 | 4.77 | 5.87 | 5.28 | 4.95 |
| Payables turnover | 10.20 | 11.53 | 10.30 | 9.84 | 9.83 | 11.48 | 9.62 | 8.19 | 7.77 | 8.87 | 8.89 | 8.70 | 7.71 | 9.31 | 9.66 | 9.89 | 9.63 | 11.04 | 11.02 | 10.94 |
| Working capital turnover | 5.04 | 4.67 | 4.34 | 3.92 | 4.22 | 3.64 | 3.47 | 4.21 | 5.83 | 7.29 | 4.87 | 3.91 | 4.15 | 4.23 | 4.29 | 4.08 | 4.08 | 4.12 | 4.02 | 5.98 |
1. Inventory turnover:
RPM International Inc's inventory turnover ratio has been relatively stable over the period, ranging from 4.70 to 6.93. This indicates that the company efficiently manages its inventory, with an average of approximately 5.84 over the period. A higher inventory turnover ratio generally suggests effective inventory management and liquidity.
2. Receivables turnover:
The receivables turnover ratio for RPM has fluctuated between 4.62 and 6.73. On average, the company collects its receivables approximately 5.43 times per year. The fluctuation in this ratio may indicate changes in the company's credit policies or the creditworthiness of its customers.
3. Payables turnover:
RPM's payables turnover ratio has varied between 7.71 and 11.53, with an average of around 9.68. A higher payables turnover ratio suggests that the company is paying its suppliers more frequently, potentially benefiting from early payment discounts.
4. Working capital turnover:
The working capital turnover ratio for RPM has ranged from 3.47 to 7.29. This ratio indicates how efficiently the company generates revenue from its working capital. The average working capital turnover ratio over the period is approximately 4.66, showing that the company effectively utilizes its working capital to generate sales.
Overall, analyzing these activity ratios provides insights into RPM International Inc's efficiency in managing its inventory, receivables, payables, and working capital to generate sales and optimize its operations.
Average number of days
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.70 | 59.21 | 60.04 | 60.60 | 61.91 | 73.79 | 77.61 | 75.95 | 71.13 | 72.57 | 65.20 | 64.61 | 61.92 | 62.91 | 57.96 | 54.99 | 57.41 | 63.53 | 61.58 | 60.17 |
| Days of sales outstanding (DSO) | days | 71.85 | 54.27 | 62.30 | 71.66 | 76.69 | 61.55 | 69.51 | 74.56 | 79.04 | 62.10 | 68.90 | 70.56 | 77.68 | 63.32 | 69.78 | 75.97 | 76.52 | 62.14 | 69.10 | 73.66 |
| Number of days of payables | days | 35.80 | 31.66 | 35.43 | 37.10 | 37.13 | 31.79 | 37.96 | 44.55 | 46.95 | 41.13 | 41.06 | 41.95 | 47.34 | 39.19 | 37.77 | 36.91 | 37.92 | 33.05 | 33.12 | 33.36 |
Based on the provided data on RPM International Inc's activity ratios, we can observe fluctuations in the company's efficiency in managing its inventory, receivables, and payables over the given periods.
1. Days of Inventory on Hand (DOH):
The Days of Inventory on Hand measure how quickly RPM International Inc sells its inventory. A decrease in this ratio indicates that the company is selling its inventory faster. We notice some variability in this ratio over time, with a recent decrease from 59.21 days to 52.70 days, indicating that the company is holding less inventory on hand compared to previous periods.
2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding ratio reflects the average number of days it takes for the company to collect its accounts receivable. A lower DSO signifies that receivables are being collected more quickly. In this case, there is some fluctuation in this ratio, with a recent increase from 54.27 days to 71.85 days, indicating that RPM International Inc took longer to collect receivables in the most recent period.
3. Number of Days of Payables:
The Number of Days of Payables metric shows how long RPM International Inc takes to pay its suppliers. A higher number indicates that the company is taking longer to pay its bills. We observe some variability in this ratio, with the latest reading of 35.80 days revealing that the company took slightly longer to pay its payables compared to the previous period.
Overall, these activity ratios provide insights into RPM International Inc's efficiency in managing its inventory, receivables, and payables. It is important for investors and analysts to monitor these ratios to assess the company's operational effectiveness and cash flow management.
Long-term
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.42 | 5.60 | 5.77 | 5.80 | 5.77 | 6.12 | 6.25 | 6.27 | 5.99 | 6.08 | 6.08 | 6.38 | 6.24 | 6.38 | 6.36 | 6.47 | 6.39 | 6.71 | 6.74 | 6.76 |
| Total asset turnover | 1.09 | 1.13 | 1.11 | 1.08 | 1.05 | 1.08 | 1.03 | 1.01 | 0.99 | 1.01 | 0.99 | 0.98 | 0.96 | 0.99 | 0.98 | 0.98 | 0.96 | 1.00 | 0.99 | 0.98 |
RPM International Inc's fixed asset turnover ratio has exhibited a fluctuating trend over the past few periods, ranging between 5.42 and 6.76. This ratio measures how efficiently the company utilizes its fixed assets to generate sales, with higher values indicating better utilization. The average fixed asset turnover ratio for RPM International Inc over this period is approximately 6.12.
In comparison, the company's total asset turnover ratio has also varied, ranging from 0.96 to 1.13. This ratio reflects how effectively the company utilizes all its assets to generate sales, with higher values suggesting more efficient asset utilization. The average total asset turnover ratio for RPM International Inc during this period stands at around 1.03.
Overall, both the fixed asset turnover and total asset turnover ratios for RPM International Inc have shown some fluctuations but have generally remained at levels indicating efficient asset utilization for revenue generation.