Standex International Corporation (SXI)

Short-term

Turnover ratios

The activity ratios of Standex International Corporation over the analyzed period reflect several notable trends and consistencies that provide insights into the company's operational efficiency and working capital management.

Inventory Turnover:
The inventory turnover ratio demonstrates moderate stability with fluctuations chiefly within the range of approximately 3.69 to 5.03 times. The highest level is observed in June 2024 at 5.03, indicating a relatively efficient inventory management in that quarter, while the lowest is noted in March 2025 at 3.69, suggesting a period of slower inventory turnover. Overall, the ratio remains fairly consistent around a mid-4 value, implying steady inventory management practices without significant deterioration or improvement over the period.

Receivables Turnover:
Receivables turnover exhibits more variability, with ratios declining sharply from the high levels around 6.45 to 6.63 in late 2021 and early 2022, to a low of 3.28 in June 2025. The higher ratios in 2021 and early 2022 indicate the company’s effectiveness in collecting receivables during that period, while the decline to below 4 in mid-2024 and mid-2025 suggests a slowdown in receivables collection efficiency, possibly reflecting more lenient credit policies or collection challenges.

Payables Turnover:
The payable turnover ratio shows a general upward trend from approximately 5.38 in September 2021 to peaks above 7 in late 2023 and 2024, reaching as high as 7.57 in March 2024. This indicates that the company has been paying its suppliers more rapidly over time, enhancing its payables management or taking advantage of early payment discounts, which could impact short-term liquidity management. The ratio’s movement suggests a strategic propensity to settle payables more quickly during recent periods.

Working Capital Turnover:
The working capital turnover ratio displays some fluctuation but remains predominantly within the narrow band of around 2.16 to 3.22. The ratio was relatively stable through most of 2020 and 2021, but saw a dip in early 2023 to approximately 2.23. Notably, there was an increase back to 2.52 by June 2025. These values suggest that the company’s efficiency in utilizing its working capital has remained relatively consistent, with minor periods of improvement, possibly reflecting adjustments in operational efficiency or changes in sales activity relative to working capital levels.

Summary:
Overall, the activity ratios indicate a company maintaining steady inventory management, with inventory days turning over several times a year, and exhibiting fluctuations in receivables collection efficiency, which has declined somewhat in recent years. The trend toward quicker payments to suppliers underscores a strategic shift in payables management, possibly in response to liquidity considerations or supply chain agreements. The stable working capital turnover ratio points to consistent operational efficiency in deploying working capital assets over the period.

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Average number of days

The activity ratios for Standex International Corporation, encompassing days of inventory on hand (DOH), days of sales outstanding (DSO), and days of payables, reveal patterns in operational efficiency over the specified periods.

Days of Inventory on Hand (DOH):
The DOH metric fluctuated within a range approximately between 72.50 days and 98.95 days. The lowest recorded value was 72.50 days as of June 30, 2024, indicating an improvement in inventory turnover, while the peak at 98.95 days on June 30, 2025, suggests extended inventory holding periods. The overall trend demonstrates some volatility but hovers mostly in the mid-70s to mid-80s days, reflecting relatively stable inventory management with occasional increases that could be indicative of adjusting stock levels or supply chain factors.

Days of Sales Outstanding (DSO):
The DSO values demonstrate notable variability, with initial periods averaging around 55 to 63 days. A significant shift occurs starting in June 2023, where DSO jumps sharply to 76.55 days, marking a substantial slowdown in receivables collection efficiency. This elevated level persists into subsequent periods, fluctuating above 60 days, with a peak observed at 111.36 days as of March 2025. Prior to this increase, the DSO was relatively consistent, indicating effective receivables management, but the increased figures suggest a deterioration in collection processes or changes in credit policies.

Number of Days of Payables:
The payables period ranged from approximately 44.18 days to 66.99 days. Earlier periods generally showed payables close to or below 52 days, reflecting a tied-up cash cycle where the company paid suppliers within about 4 to 7 weeks. Post-2023, the average payables period extends towards the upper end of this range, reaching as much as 66.99 days in June 2025. The lengthening of days payable indicates a tendency to extend payment terms, which may be a strategic approach to conserve cash or reflect supplier payment negotiations.

Summary:
Overall, Standex’s activity ratios display a tendency toward stability with periods of fluctuation. The inventory management remained relatively consistent, with slight increases toward the end of the analyzed period. The receivables collection period experienced a marked deterioration beginning mid-2023, moving from a consistent 55–63 days to over 111 days by March 2025, indicating potential challenges in receivables collection or changes in customer credit policies. The company has also been extending its payables period in more recent periods, which, combined with extended receivables, suggests an overall elongation of the cash conversion cycle. These shifts could imply a strategic delay in payout to suppliers, possibly to manage liquidity amid changing operational conditions or credit environments, but also raise concerns about collection efficiencies and working capital management.

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Long-term

The analysis of Standex International Corporation’s long-term activity ratios, as derived from the provided data, reveals several notable trends and insights regarding the company’s asset utilization efficiency over the specified periods.

Fixed Asset Turnover Ratio:

The fixed asset turnover ratio fluctuates within a range of approximately 3.85 to 5.93 across the reporting periods. Notably, the ratio reached a peak of 5.93 on September 30, 2022, indicating heightened efficiency in generating sales from the company’s fixed assets during that period. Conversely, a decline to 3.85 on June 30, 2021, suggests a period of reduced fixed asset utilization efficiency. After the peak, the ratio generally remains above 4.0, reflecting a relatively effective use of fixed assets in generating revenue. However, toward the most recent periods, the ratio has slightly decreased, reaching approximately 4.05 on September 30, 2024, which may indicate some reduction in fixed asset utilization efficiency or asset base adjustments.

Total Asset Turnover Ratio:

The total asset turnover ratio remains within a narrower band, primarily fluctuating between 0.48 and 0.80 throughout the analyzed periods. The highest observed value is 0.80 on September 30, 2022, suggestive of optimal overall asset utilization during that quarter. Over time, there is a general upward trend from approximately 0.63 on December 31, 2020, to the peak in late 2022, indicating improved efficiency in using total assets to generate sales. After reaching the apex in late 2022, the ratio shows signs of decline, notably dropping to 0.48 by December 31, 2024—a significant decrease that indicates a decrease in overall asset efficiency, possibly due to changes in asset composition, investments, or sales performance. The ratio seems to stabilize somewhat around 0.72 to 0.76 in the early months of 2023 but then declines markedly by the end of 2024.

Overall Observations:

The data suggests that Standex International has experienced variability in asset utilization efficiency over this period. The fixed asset turnover ratio demonstrates periods of strong performance and some decline, aligning with strategic or operational changes. The total asset turnover trend reflects initial improvements leading to a peak around late 2022, followed by a downward adjustment in subsequent periods. These fluctuations may be indicative of shifts in operational focus, asset management strategies, or market conditions affecting sales relative to asset base.

In summary, while the firm has demonstrated periods of high asset efficiency, recent trends point to some deterioration, underscoring the importance of ongoing asset management and operational efficiency initiatives to sustain or improve these ratios over time.