Sensata Technologies Holding NV (ST)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.52 | 3.91 | 4.21 | 4.32 | 4.70 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.99 | 3.17 | 2.52 | 1.71 | 1.36 |
Sensata Technologies Holding NV's inventory turnover ratio has shown a slight decrease over the years, from 4.70 in 2020 to 4.52 in 2024. This indicates that the company is selling its inventory less frequently over time.
The receivables turnover ratio is not provided, suggesting that information on how quickly the company collects its receivables is not available.
Similarly, the payables turnover ratio data is not available, indicating that there is no information on how quickly the company pays its suppliers.
The working capital turnover ratio, on the other hand, has generally been increasing, from 1.36 in 2020 to 2.99 in 2024. This indicates that Sensata Technologies Holding NV is generating more revenue relative to its working capital, which is a positive sign of efficiency in utilizing its resources to generate sales.
Overall, while the inventory turnover ratio has shown a slight decline, the increasing trend in the working capital turnover ratio suggests improved efficiency in utilizing working capital to generate revenue, although more context from the receivables and payables turnover ratios would provide a more comprehensive analysis of the company's overall activity efficiency.
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 | 80.76 | 93.25 | 86.79 | 84.45 | 77.68 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, we can analyze the activity ratios of Sensata Technologies Holding NV as follows:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand indicate how many days, on average, the company holds its inventory before it is sold. The trend for Sensata Technologies shows an increase in the DOH from 77.68 days in 2020 to 93.25 days in 2023, with a slight decrease to 80.76 days in 2024.
- The increase in DOH implies that the company is taking longer to convert its inventory into sales, which may tie up more capital in inventory and could indicate potential inefficiencies in inventory management.
2. Days of Sales Outstanding (DSO):
- Unfortunately, the data does not provide information on the days of sales outstanding for Sensata Technologies over the specified period. DSO measures how long it takes for the company to collect payments from its customers after making sales.
- A lower DSO is generally preferable as it indicates that the company is efficiently collecting cash from its sales, improving liquidity.
3. Number of Days of Payables:
- Similarly, the data does not include information on the number of days of payables for Sensata Technologies. This ratio measures the average number of days the company takes to pay its suppliers.
- A longer number of days of payables may indicate that the company is effectively using suppliers' funds to finance its operations, leading to improved cash flow and working capital efficiency.
In conclusion, while the analysis of Sensata Technologies' activity ratios based on the available data is limited, it is essential to monitor these ratios regularly to assess the company's efficiency in managing its inventory, receivables, and payables, which are critical aspects of its overall operational performance and financial health.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.79 | 4.65 | 3.79 |
| Total asset turnover | 0.55 | 0.53 | 0.46 | 0.44 | 0.39 |
Long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate sales. Let's analyze the data for Sensata Technologies Holding NV:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate revenue.
- From the data provided, we can see an increasing trend in the fixed asset turnover ratio over the years.
- The ratio has improved from 3.79 in December 2020 to 4.65 in December 2021 and further to 4.79 in December 2022.
- However, there is missing data for the fixed asset turnover ratio in December 2023 and 2024.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently the company is utilizing all its assets to generate sales.
- Similar to the fixed asset turnover ratio, there is an increasing trend in the total asset turnover ratio.
- The total asset turnover ratio has increased from 0.39 in December 2020 to 0.55 in December 2024.
- The rising total asset turnover ratio indicates that the company is generating more sales relative to its total assets over the years.
Overall, based on the data provided, Sensata Technologies Holding NV has shown improvements in both the fixed asset turnover and total asset turnover ratios, suggesting increased efficiency in utilizing assets to generate revenue. However, it is important to note the missing data for the fixed asset turnover ratio in December 2023 and 2024, which limits a comprehensive analysis for those years.