Standex International Corporation (SXI)

Short-term

Turnover ratios

The activity ratios of Standex International Corporation over the period from June 30, 2021, to June 30, 2025, demonstrate varying trends in operational efficiency concerning inventory, receivables, payables, and working capital.

Inventory Turnover:
The inventory turnover ratio experienced slight fluctuations during this period. It decreased marginally from 4.52 in 2021 to 4.42 in 2022. Subsequently, it increased to 4.63 in 2023 and further improved to 5.04 in 2024, indicating a more efficient inventory management and faster inventory turnover. However, in 2025, the ratio declined back to 3.77, suggesting a slowdown in inventory sales or a buildup of inventory levels relative to sales.

Receivables Turnover:
Receivables turnover showed a declining trend over the analyzed years. It started at 5.25 in 2021, slightly decreasing to 5.19 in 2022. The ratio then decreased more significantly to 4.77 in 2023 and continued downward to 4.32 in 2024 and 4.57 in 2025. The overall decline implies a longer collection period for receivables, reflecting a potential slowdown in collection efficiency or a change in credit policy.

Payables Turnover:
The payables turnover ratio exhibited an increasing trend until 2024, rising from 5.55 in 2021 to 6.65 in 2023, and further to 6.92 in 2024. This indicates an increasing number of turnover periods, suggesting that the company is taking longer to pay its suppliers, possibly to manage cash flow more effectively. In 2025, the ratio declined again to 5.56, indicating a shorter period to settle payables.

Working Capital Turnover:
This ratio fluctuated over the period. It increased from 2.85 in 2021 to 3.22 in 2022, then decreased notably to 2.16 in 2023. It subsequently increased to 2.38 in 2024 and further to 2.52 in 2025. These movements reflect variations in how efficiently the company utilizes working capital to generate sales. The decline in 2023 might suggest less efficient use of working capital, while the subsequent increase indicates some recovery or improvement in this regard.

In summary, the activity ratios depict a company experiencing some cyclical changes in operational efficiency. Inventory turnover improvements in 2023 and 2024 hint at better inventory management, while the decline in receivables turnover suggests longer cash collection periods. Payables management improved particularly up to 2024 but showed signs of reversal in 2025. Fluctuations in working capital turnover mirror these operational shifts, reflecting adjustments in the company's asset utilization strategies over the analyzed timeframe.

---

Average number of days

The activity ratios of Standex International Corporation, as reflected by inventory days (DOH), receivables days (DSO), and payables days over the period from June 30, 2021, to June 30, 2025, exhibit notable trends and variations.

Inventory Days (Days of Inventory on Hand - DOH):
The company's inventory turnover metrics reveal a slight initial increase followed by notable fluctuations. From 80.80 days in 2021, inventory days rose marginally to 82.62 days in 2022, indicating a modest slowdown in inventory turnover. Subsequently, there was a decrease to 78.88 days in 2023, suggesting an improvement in inventory management. However, this downward trend was interrupted by a significant rise to 96.94 days in 2025, which may indicate increased inventory holdings or potential challenges in inventory liquidation.

Receivables Days (Days of Sales Outstanding - DSO):
The receivables collection period displays a gradual upward trend, moving from 69.47 days in 2021 to 70.36 days in 2022 and rising more noticeably to 76.55 days in 2023. This suggests a lengthening of the collection cycle, potentially reflecting changes in customer credit terms or collection efficiency. The trend continued upwards to 84.46 days in 2024 before slightly decreasing to 79.78 days in 2025, indicating some improvement in receivables management, although the collection period remains relatively extended.

Payables Days:
The company’s payables period shows some variability. It decreased from 65.75 days in 2021 to 58.44 days in 2022 and further to 54.92 days in 2023, implying a trend towards faster payment to suppliers. This was followed by a slight decrease to 52.73 days in 2024. Notably, in 2025, the payables period increased again to 65.62 days, approaching the levels observed in 2021, which may suggest a strategic shift to extend payment terms or due to supplier negotiations.

Overall, the activity ratios indicate that Standex International experienced a gradual lengthening of receivables collection periods and inventory holding periods, especially by 2024 and 2025, which could influence the company's working capital management. The fluctuating payables period suggests strategic adjustments in managing supplier payments, potentially balancing cash flow needs with supplier relationships.

---

Long-term

The analysis of Standex International Corporation’s long-term activity ratios, based on the provided data, reveals trends in asset utilization efficiency over the specified periods.

Fixed Asset Turnover Ratio Analysis:
This ratio measures how effectively the company utilizes its fixed assets to generate sales. From June 30, 2021, to June 30, 2023, there has been a consistent upward trajectory. Starting at 3.85 in 2021, it increased to 4.38 in 2022, and then to 5.66 in 2023. This suggests a significant improvement in the utilization of fixed assets, indicating either increased sales efficiency relative to fixed assets or targeted asset management strategies. However, in the subsequent year, 2024, the ratio declined to 4.19, indicating a potential decrease in fixed asset utilization efficiency or expanded asset base not proportionally matched by sales growth. Overall, the rise up to 2023 points to enhanced asset productivity, whereas the dip in 2024 warrants closer examination of asset deployment or sales performance in that period.

Total Asset Turnover Ratio Analysis:
This ratio assesses the overall efficiency in generating sales from total assets employed. From June 30, 2021, to June 30, 2022, there was an increase from 0.68 to 0.79, reflecting improved overall asset efficiency in generating revenue. The ratio then slightly decreased to 0.72 in 2023 and remained stable at that level in 2024. Notably, by June 30, 2025, the ratio declined further to 0.50. The initial improvement through 2022 indicates expanded sales efficiency, while the subsequent stabilization suggests a plateau in overall asset utilization. The decline in 2025 could imply a reduction in sales relative to total assets, possibly due to asset expansion, changes in operational efficiency, or shifts in product demand.

Overall Considerations:
The upward trend in the fixed asset turnover ratio until 2023 reflects an increasingly efficient use of fixed assets, perhaps driven by operational improvements or increased sales without proportional asset growth. The subsequent decline in 2024 and further decrease in total asset turnover in 2025 suggest challenges in maintaining these efficiencies. The decline in total asset turnover ratio is more pronounced, indicating potential issues in generating revenue from the total asset base, which could stem from increased asset holdings, decreased sales, or a combination thereof. Continuous monitoring of these ratios is necessary to determine whether these trends reflect strategic shifts, operational issues, or other external factors affecting asset utilization.

In summary, while Standex International demonstrated notable improvements in fixed asset efficiency through 2023, recent data indicates a slowdown in asset utilization effectiveness, highlighting areas for potential operational optimization.