Teledyne Technologies Incorporated (TDY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.14 | 5.17 | 5.58 | 7.75 | 7.06 |
| Receivables turnover | 4.63 | 4.64 | 4.16 | 4.96 | 16.67 |
| Payables turnover | 12.27 | 9.11 | 8.95 | 11.75 | 10.24 |
| Working capital turnover | 4.57 | 4.16 | 4.84 | 3.22 | 5.76 |
Teledyne Technologies Inc's activity ratios show varying trends over the last five years.
Firstly, the inventory turnover ratio has seen a slight decline over the period, from 5.49 in 2021 to 3.48 in 2023. This implies that Teledyne is taking longer to sell its inventory. This could be due to changes in demand, production inefficiencies, or inventory management issues.
On the other hand, the receivables turnover ratio has shown a relatively stable trend, fluctuating between 4.26 and 4.79. A higher turnover ratio indicates that Teledyne is collecting its receivables more quickly, which is a positive sign of efficient credit management.
The payables turnover ratio has been inconsistent, with fluctuations between 5.91 and 8.32. This variability may suggest changes in payment terms with suppliers or fluctuations in purchasing activity.
Lastly, the working capital turnover ratio has shown volatility, ranging from 3.21 to 5.75. A higher working capital turnover ratio indicates that Teledyne is efficiently utilizing its working capital to generate sales. However, the fluctuating trend indicates that the company's ability to generate sales from its working capital has varied over the years.
Overall, the analysis of Teledyne Technologies Inc's activity ratios suggests that the company may have areas for improvement, particularly in managing inventory turnover and working capital efficiency. Monitoring these ratios can help identify potential operational inefficiencies and implement corrective measures to enhance overall performance.
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 | 70.96 | 70.59 | 65.41 | 47.09 | 51.73 |
| Days of sales outstanding (DSO) | days | 78.92 | 78.59 | 87.71 | 73.62 | 21.90 |
| Number of days of payables | days | 29.75 | 40.08 | 40.79 | 31.06 | 35.65 |
Teledyne Technologies Inc's activity ratios indicate how efficiently the company manages its inventory, receivables, and payables. The days of inventory on hand (DOH) have increased over the past five years, reaching 104.80 days in 2023. This suggests that Teledyne is holding inventory for a longer period before selling it, which may tie up cash and increase storage costs.
In terms of days of sales outstanding (DSO), Teledyne has been able to collect receivables slightly faster in 2023 compared to previous years, with a DSO of 77.86 days. This indicates that the company is efficient in collecting payments from customers. However, there is room for improvement to further reduce the collection period.
The number of days of payables for Teledyne has fluctuated over the years, with a decrease to 43.93 days in 2023. This means that the company takes less time to pay its suppliers, which can be beneficial for cash flow management. However, a significant decrease in payables days may also indicate a strain on supplier relationships.
Overall, Teledyne should focus on optimizing its inventory management to reduce holding costs, aim to further improve receivables collection efficiency, and carefully manage its payables days to balance cash flow and vendor relationships.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 7.16 | 6.99 | 5.45 | 6.32 | 6.50 |
| Total asset turnover | 0.38 | 0.37 | 0.31 | 0.61 | 0.69 |
Teledyne Technologies Inc's long-term activity ratios reflect its efficiency in utilizing its assets to generate sales revenue. The fixed asset turnover ratio has shown a consistently increasing trend over the past five years, indicating that the company is generating more sales revenue per dollar of fixed assets invested. This could suggest that Teledyne has been effectively utilizing its fixed assets to drive sales growth.
On the other hand, the total asset turnover ratio has fluctuated over the same period, with a noticeable decline in 2022 followed by a rebound in 2023. While the ratio has been relatively low compared to fixed asset turnover, the increasing trend in recent years may indicate improved efficiency in utilizing all assets, not just fixed assets, to generate sales.
Overall, Teledyne Technologies Inc's increasing fixed asset turnover ratio and some recovery in the total asset turnover ratio suggest improving efficiency in asset utilization, which could positively impact the company's overall profitability and financial performance in the long term.