SPX Corp (SPXC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.48 | 5.43 | 5.90 | 9.15 | 9.14 |
| Receivables turnover | 6.12 | 5.50 | 5.19 | 5.16 | 5.20 |
| Payables turnover | 12.78 | 10.63 | 9.37 | 13.89 | 10.03 |
| Working capital turnover | 5.55 | 3.75 | 2.60 | 14.97 | 63.93 |
Inventory turnover measures how efficiently a company manages its inventory by showing how many times the inventory is sold and replaced during a specific period. SPX Corp's inventory turnover has been relatively stable over the past five years, ranging from 5.43 to 5.90, indicating a consistent management of inventory levels.
Receivables turnover indicates how well a company collects payments from its customers. SPX Corp's receivables turnover has improved over the years, from 5.20 in 2019 to 6.12 in 2023, suggesting that the company has been effectively managing its accounts receivable to accelerate cash inflows.
Payables turnover measures how quickly a company pays its suppliers. SPX Corp's payables turnover has fluctuated but generally remained at healthy levels, with a notable increase from 2019 to 2020 and 2023. This may indicate effective cash management practices or negotiation of favorable payment terms with suppliers.
Working capital turnover reflects how efficiently the company utilizes its working capital to generate sales. SPX Corp's working capital turnover has varied significantly, with a sharp decline in 2020 and subsequent improvements in 2021 to 2023. The company may have adjusted its working capital management strategies to optimize operational efficiency and liquidity.
Overall, SPX Corp's activity ratios show a mix of stability and improvement over the years, suggesting effective management of inventory, receivables, payables, and working capital to support its business operations.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.59 | 67.27 | 61.83 | 39.90 | 39.92 |
| Days of sales outstanding (DSO) | days | 59.62 | 66.31 | 70.29 | 70.78 | 70.19 |
| Number of days of payables | days | 28.57 | 34.32 | 38.96 | 26.28 | 36.39 |
Days of inventory on hand (DOH) is a measure that indicates the average number of days a company holds its inventory before selling it. In the case of SPX Corp, the trend over the five-year period shows an increasing trend in the days of inventory on hand, from 39.92 days in 2019 to 66.59 days in 2023. This increasing trend may indicate potential inefficiencies in managing inventory levels or challenges in selling inventory promptly.
Days of sales outstanding (DSO) measures the average number of days it takes for a company to collect revenue after a sale has been made. SPX Corp's DSO has fluctuated over the five-year period, with a decrease from 70.19 days in 2019 to 59.62 days in 2023. A lower DSO is generally favorable as it indicates faster collection of receivables, which can improve cash flow and working capital management.
Number of days of payables represents the average number of days it takes for a company to pay its suppliers. SPX Corp's number of days of payables has also varied over the past five years, decreasing from 36.39 days in 2019 to 28.57 days in 2023. A lower number of days of payables may indicate a more efficient use of trade credit and potentially better relationships with suppliers.
In summary, SPX Corp's activity ratios show mixed trends over the five-year period, with increasing inventory holding periods, fluctuations in days of sales outstanding, and a decreasing trend in the number of days of payables. Further analysis and comparison with industry benchmarks may provide insights into the company's operational efficiency and effectiveness in managing working capital.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 12.24 | 13.28 | 10.73 | 14.79 | 8.39 |
| Total asset turnover | 0.70 | 0.75 | 0.46 | 0.66 | 0.69 |
The fixed asset turnover ratio for SPX Corp has fluctuated over the past five years, ranging from 8.39 in 2019 to 14.79 in 2020, with a noticeable decrease to 10.73 in 2021 before increasing to 13.28 in 2022 and further to 12.24 in 2023. This ratio indicates the company's efficiency in generating sales revenue from its fixed assets. A higher fixed asset turnover ratio generally suggests better asset utilization, as it reflects how effectively the company is using its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has also shown variability, moving from 0.69 in 2019 to 0.66 in 2020, then increasing to 0.46 in 2021 before rising to 0.75 in 2022 and falling back to 0.70 in 2023. This ratio measures the company's efficiency in using all its assets to generate sales. A higher total asset turnover ratio typically indicates that the company is generating more sales from its total assets.
Overall, the trend in both fixed asset turnover and total asset turnover ratios for SPX Corp indicates fluctuating efficiency in asset utilization over the years. It would be essential for the company to analyze the factors contributing to these fluctuations to improve operational efficiency and potentially enhance overall financial performance.