Sensata Technologies Holding NV (ST)
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 | 3.91 | 4.04 | 4.20 | 4.14 | 4.21 | 3.93 | 3.95 | 4.00 | 4.32 | 4.59 | 4.83 | 4.67 | 4.70 | 4.71 | 4.28 | 4.38 | 4.48 | 4.48 | 4.61 | 4.68 |
| Receivables turnover | 5.21 | 5.12 | 5.09 | 5.11 | 5.19 | 5.21 | 4.98 | 5.30 | 5.57 | 5.52 | 5.10 | 4.94 | 5.28 | 5.28 | 6.87 | 6.25 | 6.19 | 5.78 | 5.47 | 5.54 |
| Payables turnover | 5.79 | 5.37 | 5.29 | 5.14 | 5.10 | 5.30 | 4.83 | 5.27 | 5.54 | 5.93 | 5.14 | 5.08 | 5.38 | 6.47 | 8.35 | 6.52 | 6.01 | 6.16 | 5.97 | 6.18 |
| Working capital turnover | 3.03 | 2.42 | 2.46 | 2.54 | 2.41 | 2.10 | 1.66 | 1.63 | 1.63 | 1.48 | 1.51 | 1.36 | 2.05 | 1.43 | 2.25 | 2.49 | 2.59 | 2.60 | 2.59 | 2.81 |
Sensata Technologies Holding Plc's activity ratios provide insight into how efficiently the company manages its resources and operations.
1. Inventory turnover: The inventory turnover ratio measures how many times the company's inventory is sold and replaced during a period. Sensata's inventory turnover has been relatively stable, ranging between 3.91 and 4.21 over the past eight quarters. This indicates that the company is efficiently managing its inventory levels and successfully selling its products.
2. Receivables turnover: The receivables turnover ratio shows how quickly the company collects payment from its customers. Sensata's receivables turnover has also been consistent, fluctuating between 5.22 and 5.56. This suggests that the company has effective credit policies and is able to collect payments in a timely manner.
3. Payables turnover: The payables turnover ratio measures how quickly the company pays its suppliers. Sensata's payables turnover has shown some variability, ranging from 4.83 to 5.79. A higher payables turnover indicates that the company is able to efficiently manage its accounts payable and may negotiate favorable payment terms with suppliers.
4. Working capital turnover: The working capital turnover ratio evaluates how efficiently the company utilizes its working capital to generate sales. Sensata's working capital turnover has been increasing over the past eight quarters, indicating improvements in the company's ability to generate revenue using its current assets. This suggests that Sensata is effectively managing its working capital and generating sales efficiently.
Overall, based on the activity ratios, Sensata Technologies Holding Plc appears to be effectively managing its inventory, receivables, payables, and working capital to support its operational activities and generate revenue efficiently.
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 | 93.25 | 90.27 | 86.95 | 88.20 | 86.79 | 92.81 | 92.46 | 91.35 | 84.45 | 79.50 | 75.53 | 78.15 | 77.68 | 77.43 | 85.36 | 83.31 | 81.56 | 81.42 | 79.23 | 78.01 |
| Days of sales outstanding (DSO) | days | 70.07 | 71.34 | 71.70 | 71.40 | 70.37 | 70.01 | 73.27 | 68.92 | 65.50 | 66.12 | 71.57 | 73.83 | 69.11 | 69.09 | 53.15 | 58.37 | 59.01 | 63.11 | 66.74 | 65.90 |
| Number of days of payables | days | 63.03 | 68.01 | 69.02 | 70.97 | 71.54 | 68.84 | 75.64 | 69.24 | 65.91 | 61.58 | 71.08 | 71.91 | 67.85 | 56.44 | 43.69 | 56.02 | 60.68 | 59.23 | 61.19 | 59.04 |
To analyze Sensata Technologies Holding Plc's activity ratios, we will focus on the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.
1. Days of Inventory on Hand (DOH):
- Sensata's inventory turnover has been relatively stable, fluctuating between 86.79 to 93.25 days over the past eight quarters. This indicates that, on average, the company holds its inventory for approximately 86 to 93 days before it is sold.
- A higher number of days of inventory on hand may suggest that the company is carrying excess inventory, which could tie up working capital and increase carrying costs.
2. Days of Sales Outstanding (DSO):
- Sensata's DSO has varied between 65.68 to 69.87 days over the past quarters. This shows that the company takes an average of 65 to 70 days to collect its accounts receivable.
- A lower DSO is generally favorable as it indicates that the company is able to collect payments from customers more quickly, improving cash flow efficiency.
3. Number of Days of Payables:
- Sensata's payables period has ranged from 63.03 to 75.64 days over the quarters. This represents the number of days it takes for the company to pay its suppliers.
- A longer payables period may indicate that the company is taking advantage of trade credit terms, improving cash flow by delaying payments.
In summary, Sensata's activity ratios suggest that the company has been managing its inventory, receivables, and payables efficiently. However, potential areas for improvement could include reducing the days of inventory on hand and optimizing the payables period to further enhance cash flow management.
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 | 4.46 | 4.49 | 4.58 | 4.58 | 4.58 | 4.53 | 4.48 | 4.47 | 4.44 | 4.54 | 4.42 | 3.98 | 3.79 | 3.70 | 3.73 | 4.07 | 4.15 | 4.22 | 4.30 | 4.39 |
| Total asset turnover | 0.50 | 0.47 | 0.47 | 0.45 | 0.44 | 0.43 | 0.43 | 0.43 | 0.42 | 0.43 | 0.42 | 0.40 | 0.39 | 0.39 | 0.43 | 0.49 | 0.50 | 0.50 | 0.51 | 0.52 |
The fixed asset turnover ratio for Sensata Technologies Holding Plc has remained relatively stable over the past eight quarters, ranging from 4.58 to 4.79. This indicates that the company generates between $4.58 and $4.79 in sales for every dollar invested in fixed assets. The consistency of this ratio suggests that the company efficiently utilizes its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has shown a slight increasing trend, starting from 0.45 in Q1 2022 and reaching 0.53 in Q4 2023. This indicates that the company has improved its ability to generate sales from its total assets over time. A higher total asset turnover ratio signifies that the company is more efficient in utilizing all its assets (both fixed and current) to generate revenue.
Overall, the analysis of Sensata Technologies Holding Plc's long-term activity ratios suggests that the company has been effectively managing its assets to drive sales growth and maximize returns for its shareholders.