SPX Corp (SPXC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.37 | 3.87 | 3.84 | 4.15 | 6.67 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 5.42 | 5.65 | 3.77 | 2.63 | 15.96 |
Based on the activity ratios provided for SPX Corp, here is a detailed analysis:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company is managing its inventory. A higher ratio indicates better inventory management.
- The inventory turnover for SPX Corp has decreased over the years, from 6.67 in 2020 to 4.37 in 2024. This suggests that the company is holding onto its inventory for a longer period, which may tie up capital and lead to higher carrying costs.
2. Receivables Turnover:
- The receivables turnover ratio shows how quickly a company collects payment from its customers. A higher ratio indicates better collection efficiency.
- The data provided shows that SPX Corp's receivables turnover is not available (marked as "—"). Without this information, it is difficult to assess the effectiveness of the company's credit policies and collection procedures.
3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers. A higher ratio suggests the company is efficiently using its trade credit.
- Similar to receivables turnover, the data indicates that payables turnover information is not available (marked as "—"). Lack of this data makes it challenging to evaluate how effectively SPX Corp manages its payables.
4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales. A higher ratio indicates better utilization of working capital.
- SPX Corp's working capital turnover has shown fluctuations over the years, with a notable decrease from 15.96 in 2020 to 2.63 in 2021, followed by a gradual increase in subsequent years. This indicates varying levels of efficiency in utilizing working capital to generate revenue.
In conclusion, while the inventory turnover and working capital turnover ratios provide insights into SPX Corp's operational efficiency and capital utilization, the lack of data for receivables turnover and payables turnover hinders a comprehensive assessment of the company's overall working capital management and liquidity. It may be beneficial for the company to improve transparency in reporting these financial metrics for a more thorough analysis.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 83.51 | 94.28 | 95.05 | 87.95 | 54.72 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for SPX Corp's activity ratios, we can analyze the following:
1. Days of Inventory on Hand (DOH):
- December 31, 2020: 54.72 days
- December 31, 2021: 87.95 days
- December 31, 2022: 95.05 days
- December 31, 2023: 94.28 days
- December 31, 2024: 83.51 days
The Days of Inventory on Hand have shown an increasing trend from 54.72 days as of December 31, 2020, to 83.51 days as of December 31, 2024. This indicates that the company is holding inventory for a longer period, which may lead to higher carrying costs and potential obsolescence risks. The increase in DOH could suggest inefficiencies in inventory management.
2. Days of Sales Outstanding (DSO):
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided
Unfortunately, there is no data available for the Days of Sales Outstanding (DSO) for SPX Corp for the specified years. DSO is a crucial metric to analyze the efficiency of accounts receivable management and cash flow generation.
3. Number of Days of Payables:
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided
Similar to DSO, data for the Number of Days of Payables is not available for the mentioned years. This ratio is essential for understanding how long a company takes to pay its suppliers, which can impact relationships with creditors and cash flow management.
In summary, the increasing trend in Days of Inventory on Hand for SPX Corp raises concerns about inventory management efficiency. However, without information on Days of Sales Outstanding and Number of Days of Payables, a comprehensive analysis of the company's overall activity ratios and working capital management cannot be provided.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.70 | 10.76 | 3.09 |
| Total asset turnover | 0.73 | 0.71 | 0.76 | 0.46 | 0.68 |
The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. In the case of SPX Corp:
1. The Fixed Asset Turnover ratio has shown significant fluctuations over the years. It increased from 3.09 in 2020 to 10.76 in 2021, indicating a substantial improvement in the company's ability to generate sales from its fixed assets. However, it decreased to 4.70 in 2022 before the data for 2023 and 2024 became unavailable. These fluctuations suggest changes in the company's asset utilization efficiency.
2. A high Fixed Asset Turnover ratio, such as the peak ratio in 2021, suggests that SPX Corp was able to generate a higher level of sales relative to its investment in fixed assets during that year, indicating an efficient utilization of fixed assets.
3. On the other hand, the decline in the Fixed Asset Turnover ratio in 2022 may indicate that the company's efficiency in converting fixed assets into sales slightly decreased during that year. Further analysis would be necessary to understand the reasons behind this decline.
Moving on to the Total Asset Turnover ratio:
1. The Total Asset Turnover ratio measures how efficiently a company generates sales from its total assets. For SPX Corp, the ratio declined from 0.68 in 2020 to 0.46 in 2021, which suggests that the company was less effective in utilizing its assets to generate sales during that period.
2. However, the ratio improved in the following years, reaching 0.76 in 2022, 0.71 in 2023, and 0.73 in 2024. These improvements indicate that SPX Corp became more efficient in generating sales from its total assets over the subsequent years.
3. Overall, the trends in the Total Asset Turnover ratio suggest that SPX Corp managed to enhance its efficiency in utilizing its total assets to generate sales after a decline in 2021, showing a positive trajectory in asset turnover efficiency over the analyzed years.
In conclusion, the analysis of SPX Corp's long-term activity ratios, particularly the Fixed Asset Turnover and Total Asset Turnover ratios, provides insights into the company's efficiency in utilizing its assets to drive sales. The fluctuations and trends observed in these ratios offer valuable information for evaluating SPX Corp's asset management strategies and operational performance over the specified years.