Stanley Black & Decker Inc (SWK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.39 | 2.47 | 2.16 | 1.91 | 3.49 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | 13.92 | 11.98 | — | 9.84 |
The activity ratios of Stanley Black & Decker Inc provide insight into how effectively the company is managing its assets and liabilities to generate sales.
1. Inventory turnover:
- Inventory turnover represents how efficiently a company is managing its inventory. A higher turnover indicates that inventory is being sold and restocked quickly.
- The trend for Stanley Black & Decker Inc's inventory turnover is fluctuating but overall improving from 2021 to 2024, with a decrease in 2021 and an increase thereafter. This could suggest better inventory management over time.
2. Receivables turnover:
- Receivables turnover measures how quickly a company collects cash from its credit sales. A higher turnover indicates that receivables are being collected promptly.
- The data shows "not available" for receivables turnover, which could indicate that this information is not disclosed or relevant for this company.
3. Payables turnover:
- Payables turnover ratio reflects how efficiently a company is managing its payments to suppliers. A higher turnover indicates that payables are being settled faster.
- Similar to receivables turnover, the data shows "not available" for payables turnover, suggesting that information is not disclosed or not calculated for this company.
4. Working capital turnover:
- Working capital turnover ratio evaluates how well a company is utilizing its working capital to generate sales. A higher ratio indicates efficient utilization of working capital.
- The trend for Stanley Black & Decker Inc's working capital turnover is improving over the years, with a significant increase from 2020 to 2022 and further increase in 2023. A decreasing ratio in 2024 could imply a change in working capital efficiency.
In conclusion, while the inventory turnover and working capital turnover ratios provide valuable insights into the company's operational efficiency and management of assets, the lack of data for receivables and payables turnover ratios hinders a comprehensive analysis of Stanley Black & Decker Inc's overall activity performance.
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 | 152.59 | 148.04 | 168.94 | 190.74 | 104.44 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, let's analyze the activity ratios of Stanley Black & Decker Inc:
1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, a company holds its inventory before selling it.
- In December 2020, the company held inventory for 104.44 days. This increased to 190.74 days by December 2021, indicating a significant rise in inventory holding period.
- The DOH then decreased to 168.94 days by December 2022 and further to 148.04 days by December 2023. However, there was a slight increase to 152.59 days by December 2024.
- Overall, the trend shows some fluctuations in the inventory holding period, with a notable increase in 2021 followed by a subsequent decrease in the following years.
2. Days of Sales Outstanding (DSO):
- Unfortunately, data for Days of Sales Outstanding (DSO) is not provided in the given data. DSO measures the average number of days it takes for a company to collect revenue after a sale.
3. Number of Days of Payables:
- Similarly, data for the Number of Days of Payables is also not available in the provided information. This ratio would indicate how long the company takes to pay off its suppliers.
In conclusion, based on the available information, it appears that Stanley Black & Decker Inc experienced fluctuations in its inventory holding period over the years. Additional data on Days of Sales Outstanding and Number of Days of Payables would provide a more comprehensive view of the company's efficiency in managing its working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.20 | 6.65 | 7.08 |
| Total asset turnover | 0.70 | 0.67 | 0.68 | 0.55 | 0.62 |
The fixed asset turnover ratio for Stanley Black & Decker Inc has shown a fluctuating trend over the years. In 2020, the ratio was 7.08, indicating that the company generated $7.08 in revenue for every dollar invested in fixed assets. This ratio decreased to 6.65 in 2021 but then increased to 7.20 in 2022. However, data for 2023 and 2024 is unavailable.
On the other hand, the total asset turnover ratio, which measures how efficiently the company is generating sales from its total assets, has been relatively stable. The ratio was 0.62 in 2020, then decreased to 0.55 in 2021, but subsequently increased to 0.68 in 2022. It further improved to 0.70 in 2024, indicating that the company generated $0.70 in revenue for every dollar of total assets in that year.
Overall, the fixed asset turnover and total asset turnover ratios provide insights into how efficiently Stanley Black & Decker Inc is utilizing its assets to generate revenue over the years.