Teledyne Technologies Incorporated (TDY)

Short-term

Turnover ratios

Activity ratios provide insight into how effectively a company is managing its assets and operations. Looking at Teledyne Technologies Incorporated's activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio has been declining over the years. This ratio indicates how efficiently the company is managing its inventory. A decrease in this ratio could suggest slower sales or excess inventory levels, which might lead to higher holding costs or potential obsolescence issues. Teledyne's inventory turnover decreased from 5.49 in 2020 to 3.54 in 2024.

2. Receivables Turnover:
- The receivables turnover ratio, which measures how quickly a company collects its accounts receivable, is not provided in the data. Without this ratio, it is challenging to assess the effectiveness of Teledyne's credit and collection policies. A higher receivables turnover ratio is generally preferable as it indicates faster collection times.

3. Payables Turnover:
- Similar to receivables turnover, the payables turnover ratio is not available in the data. This ratio helps understand how efficiently the company is managing its payables and vendor payments. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales. An increasing trend in this ratio is typically positive, as it indicates that the company is generating more sales relative to its working capital. Teledyne's working capital turnover fluctuated over the years, with a peak of 4.88 in 2021 and a decline to 3.37 in 2024.

In conclusion, based on the provided data, it is important for Teledyne Technologies Incorporated to closely monitor its inventory management to improve its inventory turnover ratio. Additionally, further information on receivables turnover and payables turnover would provide a more comprehensive understanding of the company's efficiency in managing its working capital and operational cycle.

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Average number of days

The Days of Inventory on Hand (DOH) for Teledyne Technologies Incorporated have shown an upward trend over the years, increasing from 66.53 days as of December 31, 2020 to 103.16 days as of December 31, 2024. This indicates that the company is taking longer to sell its inventory, which may suggest inefficiencies in managing its inventory levels.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis, as they are represented as dashes for all years. Without this information, it is challenging to evaluate the company's collection efficiency from customers and payment practices with suppliers.

Overall, the increasing trend in Days of Inventory on Hand highlights a potential area for Teledyne Technologies to focus on improving its inventory turnover efficiency to optimize working capital and enhance overall operational performance.

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Long-term

Teledyne Technologies Incorporated's fixed asset turnover ratio has fluctuated over the past five years. It decreased from 6.31 in 2020 to 5.58 in 2021, before increasing to 7.09 in 2022. However, data for 2023 and 2024 is not available. This ratio measures how efficiently the company is utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio for Teledyne Technologies has shown a declining trend overall. It was 0.61 in 2020, but dropped significantly to 0.32 in 2021. Subsequently, it slightly improved to 0.38 in 2022, and further increased to 0.39 in 2023, and 0.40 in 2024. This ratio indicates how effectively the company is utilizing all its assets to generate sales.

Overall, while the fixed asset turnover ratio has shown more variability, the total asset turnover ratio has shown a more consistent improvement in recent years, suggesting that Teledyne Technologies may be getting more efficient in generating revenue relative to its total assets.