Simpson Manufacturing Company Inc (SSD)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 3.02 3.24 3.12 2.85 2.85 2.81 2.56 2.78 2.60 2.83 3.45 3.43 3.43 3.65 3.48 3.61 3.65 3.79 3.37 3.27
Receivables turnover 7.77 6.20 5.54 6.32 7.83 6.14 5.06 5.35 6.78 6.11 5.65 5.85 7.66 5.49 5.08 6.92 8.19 6.21 5.74 6.36
Payables turnover 15.48 17.17 16.69 17.21 16.24 15.36 12.22 16.16 20.14 17.46 17.74 15.34 20.14 22.45 18.82 20.74 27.54 22.52 22.84 25.08
Working capital turnover 2.32 2.07 2.20 2.41 2.54 2.32 2.25 1.16 2.08 2.05 2.11 2.24 2.26 1.97 1.85 1.98 2.37 2.39 2.41 2.59

Simpson Manufacturing Co., Inc.'s activity ratios provide insights into how efficiently the company is managing its operational assets and liabilities.

1. Inventory turnover: The company's inventory turnover ratio has shown some fluctuation over the periods provided, ranging from 2.08 to 2.31. This indicates how many times inventory was sold and replaced during the period. A higher ratio suggests better inventory management, but Simpson's ratios are relatively stable, showing moderate efficiency in managing inventory levels.

2. Receivables turnover: Simpson's receivables turnover ratios have also varied, ranging from 5.07 to 7.86. This ratio reflects how quickly the company collects payments from customers. The higher the ratio, the more efficient the company is in collecting outstanding receivables. Simpson's ratios display fluctuations, but overall, the company seems to have a satisfactory collection process.

3. Payables turnover: The payables turnover ratios have ranged from 8.94 to 12.59, showing how quickly the company pays its suppliers. A higher ratio indicates that the company is paying its payables more frequently. Simpson's ratios suggest that it has been managing its payables efficiently and consistently over time.

4. Working capital turnover: The working capital turnover ratios have varied from 1.16 to 2.55, reflecting the efficiency of the company in utilizing its working capital to generate sales revenue. A higher ratio indicates better utilization of working capital. Simpson's ratios show some variability but generally indicate that the company is effectively utilizing its working capital to drive sales.

In conclusion, Simpson Manufacturing Co., Inc. demonstrates moderate to good efficiency in managing its assets and liabilities based on its activity ratios analysis. The company shows stability and consistency in managing its inventory, receivables, payables, and working capital, reflecting sound operational management.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 120.95 112.54 117.01 128.25 127.87 130.10 142.71 131.14 140.55 129.17 105.94 106.54 106.51 100.04 104.73 101.10 100.11 96.28 108.39 111.53
Days of sales outstanding (DSO) days 46.95 58.87 65.83 57.76 46.62 59.43 72.17 68.23 53.82 59.73 64.56 62.41 47.64 66.52 71.84 52.75 44.54 58.76 63.56 57.41
Number of days of payables days 23.58 21.25 21.87 21.20 22.47 23.77 29.86 22.59 18.12 20.91 20.58 23.79 18.12 16.26 19.40 17.59 13.25 16.21 15.98 14.55

The activity ratios of Simpson Manufacturing Co., Inc. provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): Simpson Manufacturing Co., Inc. has shown fluctuations in its DOH over the last eight quarters, ranging from 158.21 days to 195.15 days. The company takes an average of around 170 days to sell its inventory. A lower DOH indicates that the company is efficiently managing its inventory levels, while a higher DOH suggests excess inventory or slow sales.

2. Days of Sales Outstanding (DSO): The DSO for Simpson Manufacturing Co., Inc. has also varied, with values ranging from 46.42 days to 71.99 days. This ratio measures the average number of days it takes for the company to collect its accounts receivable. A lower DSO indicates that the company is effectively managing its credit policies and collecting payments promptly.

3. Number of Days of Payables: The number of days of payables for Simpson Manufacturing Co., Inc. has fluctuated between 29.00 days and 40.84 days over the last eight quarters. This ratio reflects the average number of days it takes for the company to pay its suppliers. A higher number of days of payables suggests that the company is able to delay payments to suppliers, which can help improve cash flow.

Overall, it is essential for Simpson Manufacturing Co., Inc. to strike a balance between managing inventory efficiently, collecting receivables promptly, and optimizing payment terms with suppliers to ensure smooth operations and healthy cash flow.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 5.27 5.69 5.73 5.82 5.83 6.02 5.48 6.45 6.03 5.66 5.53 5.20 4.96 5.04 4.81 4.73 4.59 4.48 4.35 4.38
Total asset turnover 0.82 0.77 0.79 0.84 0.84 0.82 0.76 0.75 1.06 1.02 1.03 1.03 1.03 0.97 0.92 0.97 1.04 1.03 1.03 1.07

The long-term activity ratios for Simpson Manufacturing Co., Inc., over the past eight quarters reveal some insights into the efficiency of the company's long-term asset management.

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate revenue. Simpson Manufacturing Co., Inc., has shown a consistent trend of high fixed asset turnover over the quarters, with values ranging from 5.29 to 6.47. This indicates that the company is efficiently utilizing its fixed assets to generate sales.

2. Total Asset Turnover: The total asset turnover ratio reflects how efficiently a company is using all its assets to generate revenue. Simpson Manufacturing Co., Inc., has exhibited varying total asset turnover ratios over the quarters, with values ranging from 0.75 to 0.85. Despite some fluctuations, the company generally maintains a moderate level of total asset turnover.

Overall, the high fixed asset turnover ratios suggest that Simpson Manufacturing Co., Inc., effectively leverages its fixed assets to drive sales, indicating good operational efficiency. The fluctuating total asset turnover ratios may point to changes in the company's overall asset management strategies or sales performance. Investors and stakeholders may view these ratios as positive indicators of the company's ability to generate revenue from its long-term assets.