Stanley Black & Decker Inc (SWK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.46 | 2.16 | 1.88 | 3.16 | 3.60 |
| Receivables turnover | 10.14 | 12.78 | 9.64 | 7.66 | 8.17 |
| Payables turnover | 7.13 | 5.40 | 2.98 | 3.60 | 3.88 |
| Working capital turnover | 13.92 | 12.06 | — | 8.63 | 253.69 |
Inventory turnover for Stanley Black & Decker Inc has shown fluctuation over the last five years, with a peak in 2019 at 3.60 times and a low in 2021 at 1.88 times. This ratio indicates that the company's inventory is moving more efficiently in recent years compared to 2021.
Receivables turnover has been relatively stable, with a high of 12.78 times in 2022 and a low of 7.66 times in 2021. A higher turnover suggests that Stanley Black & Decker Inc is collecting receivables more quickly.
Payables turnover has shown an increasing trend, with a noticeable jump from 2019 to 2020, indicating that the company is taking longer to pay its suppliers. In 2023, the ratio reached 7.13 times, reflecting a slower pace of payments to vendors.
The working capital turnover ratio has varied significantly, with a sharp increase to 253.69 times in 2019, suggesting an extremely efficient use of working capital that year. In 2022 and 2023, the ratio remained at elevated levels, indicating that Stanley Black & Decker Inc continues to generate significant revenue relative to its working capital.
Overall, the company's activity ratios reflect varying efficiency levels in managing inventory, collecting receivables, paying suppliers, and utilizing working capital over the past five years. Investors and analysts may assess these metrics to evaluate the operational performance and financial health of Stanley Black & Decker Inc.
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 | 105.53 | 168.94 | 194.15 | 115.43 | 101.52 |
| Days of sales outstanding (DSO) | days | 35.99 | 28.57 | 37.88 | 47.63 | 44.69 |
| Number of days of payables | days | 51.20 | 67.57 | 122.64 | 101.48 | 93.99 |
1. Days of Inventory on Hand (DOH):
Stanley Black & Decker Inc has shown a decreasing trend in the days of inventory on hand over the past five years. This indicates that the company has been more efficient in managing its inventory levels, as it now takes fewer days to sell off its inventory. The decrease from 194.15 days in 2021 to 105.53 days in 2023 is particularly noteworthy, showing a significant improvement.
2. Days of Sales Outstanding (DSO):
The days of sales outstanding for Stanley Black & Decker Inc have been relatively stable over the past five years, with some fluctuations. A lower DSO suggests that the company is collecting its accounts receivable more quickly. The increase from 28.57 days in 2022 to 35.99 days in 2023 may indicate a slight slowdown in the collection of receivables but is still within a reasonable range.
3. Number of Days of Payables:
The number of days of payables for Stanley Black & Decker Inc has shown a decreasing trend over the past five years. A lower number of days of payables indicates that the company is paying its suppliers more quickly. The decrease from 122.64 days in 2021 to 51.20 days in 2023 shows a significant improvement in the company's ability to manage its payables effectively.
Overall, Stanley Black & Decker Inc has demonstrated improvement in its activity ratios, with better management of inventory levels and payables, although there may be a slight slowdown in the collection of receivables. These trends suggest that the company is working towards optimizing its working capital management and enhancing its overall operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 7.27 | 7.20 | 6.54 | 6.46 | 6.59 |
| Total asset turnover | 0.67 | 0.68 | 0.54 | 0.54 | 0.63 |
The fixed asset turnover ratio for Stanley Black & Decker Inc has been relatively stable over the past five years, ranging from 6.46 to 7.27. This indicates that the company generates significant revenue relative to its investment in fixed assets each year.
On the other hand, the total asset turnover ratio has shown some fluctuation but generally remained within a narrow range between 0.54 and 0.68. This suggests that the company has been effectively utilizing both its fixed and current assets to generate sales, with a slightly higher emphasis on its fixed assets.
Overall, the long-term activity ratios for Stanley Black & Decker Inc reflect efficient asset utilization and revenue generation, signaling effective management of the company's assets to drive sales and profitability over the years. The consistent performance of the fixed asset turnover ratio indicates the company's ability to efficiently use its fixed assets to generate revenue, while the total asset turnover ratio demonstrates a balanced utilization of both fixed and current assets to drive overall sales.