SPX Corp (SPXC)

Short-term

Turnover ratios

The analysis of SPX Corp's activity ratios reveals interesting insights into the company's efficiency in managing its working capital and inventory.

1. Inventory Turnover:
The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. SPX Corp's inventory turnover has shown a declining trend from 6.16 on March 31, 2020, to 4.49 on December 31, 2024. This indicates that the company is taking longer to sell its inventory, which may lead to inventory obsolescence or carrying costs.

2. Receivables Turnover:
Unfortunately, the data provided does not include the receivables turnover ratio. This ratio would have helped assess how efficiently SPX Corp collects outstanding accounts receivable from its customers. A higher receivables turnover ratio is generally favorable as it indicates quicker collection of receivables.

3. Payables Turnover:
Similar to receivables turnover, the payables turnover ratio data is not available. This ratio helps in evaluating how quickly a company pays its suppliers. A higher payables turnover ratio may suggest that the company is efficiently managing its accounts payable.

4. Working Capital Turnover:
The working capital turnover ratio measures how efficiently a company uses its working capital to generate sales revenue. SPX Corp's working capital turnover fluctuates over the years, ranging from 37.02 on March 31, 2020, to 5.42 on December 31, 2024. A decreasing trend in working capital turnover may indicate a decline in sales relative to the working capital invested.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into SPX Corp's operational efficiency, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall liquidity and management of accounts receivable and accounts payable. It would be beneficial to have complete data on all activity ratios to better evaluate SPX Corp's performance in these areas.

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Average number of days

The analysis of SPX Corp's activity ratios reveals noteworthy trends in its operational efficiency over the years.

1. Days of Inventory on Hand (DOH):
- SPX Corp experienced a gradual increase in its DOH from March 2020 to December 2022, reflecting a longer time taken to sell its inventory.
- There was a significant spike in DOH from December 2022 to March 2024, indicating potential issues with inventory management or slowing sales.

2. Days of Sales Outstanding (DSO):
- Data for DSO is missing for all periods provided, making it challenging to evaluate the efficiency of SPX Corp's accounts receivable collection process.

3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not available, preventing an assessment of the company's payment practices.

Overall, the prolonged DOH trend suggests SPX Corp may be facing challenges in managing its inventory levels effectively, which could impact its working capital and profitability. More insights could be gained by comparing these activity ratios with industry benchmarks and historical data.

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Long-term

The Fixed Asset Turnover ratio for SPX Corp has exhibited fluctuations over the analyzed periods. The ratio was relatively stable in early 2020, in the range of 8.26 to 8.77. However, a significant decrease was observed by the end of 2020, dropping to 3.10, indicating a potential decline in the efficiency of utilizing fixed assets to generate revenue.

Subsequently, the Fixed Asset Turnover ratio experienced a sharp increase in mid-2021, reaching levels of 13.31 to 13.41, which suggests a substantial improvement in the company's ability to generate revenue using its fixed assets efficiently. Despite a fluctuating pattern in the recent periods, the ratio has generally remained above 4.00, indicating a positive trend in the utilization of fixed assets.

On the other hand, the Total Asset Turnover ratio demonstrates a declining trend from mid-2020 to the end of 2021, decreasing from 0.70 to 0.51. This decline suggests that the company may not be generating revenue as efficiently in relation to its total assets during this period.

However, starting from early 2022, the Total Asset Turnover ratio shows an upward trend, reaching levels of 0.69 to 0.77 by mid-2023, which indicates an improvement in the efficiency of utilizing total assets to generate revenue. The ratio remained relatively stable around 0.65 to 0.73 in the most recent periods, implying a more efficient utilization of total assets for revenue generation.

Overall, analyzing both ratios together provides insights into SPX Corp's efficiency in generating revenue relative to its fixed and total assets, showcasing periods of improvement as well as potential areas for further optimization in its asset management strategies.