Teledyne Technologies Incorporated (TDY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.67 | 4.44 | 4.38 | 4.42 | 5.10 | 5.55 | 5.64 | 5.64 | 5.42 | 4.19 | 3.46 | 7.97 | 7.58 | 7.28 | 6.90 | 6.80 | 6.84 | 6.50 | 6.59 | 6.47 |
| Receivables turnover | 4.64 | 4.66 | 4.74 | — | 4.64 | — | — | — | 4.16 | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 11.13 | 9.38 | 9.25 | 8.50 | 8.98 | 9.26 | 9.59 | 9.11 | 8.69 | 8.17 | 7.50 | 10.46 | 11.50 | 12.28 | 11.05 | 10.35 | 9.93 | 10.73 | 11.60 | 11.18 |
| Working capital turnover | 4.59 | 4.89 | 5.49 | 3.92 | 4.16 | 4.85 | 5.65 | 5.42 | 4.84 | 3.58 | 2.16 | 0.85 | 3.22 | 3.59 | 4.31 | 5.28 | 5.72 | 7.60 | 6.63 | 7.47 |
Teledyne Technologies Inc's activity ratios provide valuable insights into the efficiency of the company's operations.
Firstly, looking at the inventory turnover ratio, we can see that Teledyne's inventory turnover has been relatively stable around 3.5 times per year in recent quarters. This indicates that the company is managing its inventory efficiently and effectively converting its inventory into sales.
Secondly, the receivables turnover ratio shows a consistent trend of around 4.7 to 4.9 times per year, suggesting that Teledyne is collecting its receivables in a timely manner. This indicates that the company has effective credit policies in place and is efficiently converting credit sales into cash.
Next, the payables turnover ratio has been increasing over the quarters, reaching 8.31 times in Q4 2023. This increase indicates that the company is taking longer to pay its suppliers. While a higher payables turnover can indicate effective cash management, it could also imply strained relationships with suppliers if payment terms are being stretched too far.
Lastly, the working capital turnover ratio has shown some fluctuations over the quarters, with a peak of 5.74 in Q2 2022. This ratio measures how efficiently a company is using its working capital to generate sales. The decreasing trend in Q1 2023 may indicate that Teledyne is less efficient in utilizing its working capital to generate revenue during that period.
In conclusion, Teledyne Technologies Inc's activity ratios reflect a generally efficient management of inventory and receivables. However, attention may be needed to manage the payables turnover and working capital turnover ratios effectively to optimize the company's overall operational efficiency.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 78.21 | 82.29 | 83.41 | 82.61 | 71.57 | 65.79 | 64.74 | 64.68 | 67.34 | 87.05 | 105.60 | 45.80 | 48.13 | 50.15 | 52.88 | 53.71 | 53.35 | 56.19 | 55.41 | 56.45 |
| Days of sales outstanding (DSO) | days | 78.62 | 78.34 | 76.96 | — | 78.59 | — | — | — | 87.71 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 32.79 | 38.91 | 39.48 | 42.97 | 40.64 | 39.40 | 38.07 | 40.05 | 41.99 | 44.68 | 48.66 | 34.90 | 31.75 | 29.73 | 33.02 | 35.27 | 36.76 | 34.03 | 31.47 | 32.65 |
Activity ratios provide insights into how efficiently a company is managing its assets and operating cycle. Let's analyze the activity ratios of Teledyne Technologies Inc based on the provided data:
1. Days of Inventory on Hand (DOH): This ratio measures how long it takes for Teledyne to sell its inventory. The trend indicates an increase in DOH from Q1 2022 to Q4 2023, with fluctuations in between. A higher DOH may suggest slower inventory turnover and possible overstocking, impacting liquidity and tying up funds in inventory.
2. Days of Sales Outstanding (DSO): DSO reflects how quickly Teledyne collects cash from credit sales. The trend shows fluctuations but relatively stable values. A decrease in DSO indicates efficient management of accounts receivable, improving cash flow and liquidity. The company has maintained a reasonable DSO level over the periods analyzed.
3. Number of Days of Payables: This ratio reveals the average number of days Teledyne takes to pay its suppliers. A shorter DOP implies the company is paying its bills quickly, which may strain liquidity. The trend shows fluctuations but generally decreasing DOP values from Q1 2022 to Q4 2023. It indicates that Teledyne has been able to negotiate more favorable payment terms with its suppliers.
Overall, the analysis of Teledyne Technologies Inc's activity ratios suggests fluctuations in inventory management and payment terms but relatively stable accounts receivable management. The company may need to focus on optimizing its inventory levels and continue to efficiently manage its working capital cycle to improve overall operational efficiency and financial performance.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.18 | 3.30 | 3.31 | 3.33 | 6.99 | 3.39 | 3.32 | 3.13 | 5.45 | 4.65 | 3.95 | 6.36 | 6.32 | 6.52 | 6.63 | 6.70 | 6.45 | 6.54 | 6.62 | 6.52 |
| Total asset turnover | 0.38 | 0.39 | 0.39 | 0.38 | 0.37 | 0.39 | 0.38 | 0.35 | 0.31 | 0.28 | 0.24 | 0.40 | 0.61 | 0.64 | 0.67 | 0.70 | 0.69 | 0.68 | 0.71 | 0.71 |
Teledyne Technologies Inc's long-term activity ratios indicate the efficiency of the company in utilizing its fixed assets and total assets to generate sales.
The fixed asset turnover ratio has shown a relatively stable trend, consistently ranging between 6.35 and 7.46 over the past eight quarters. This implies that Teledyne is able to generate revenue efficiently from its investment in fixed assets. The recent Q4 2023 ratio of 7.25 suggests that for every dollar invested in fixed assets, the company generated $7.25 in sales, reflecting strong asset utilization.
On the other hand, the total asset turnover ratio has also been relatively steady, fluctuating between 0.36 and 0.40. This indicates that Teledyne is effectively leveraging its total assets to generate revenue. The Q4 2023 ratio of 0.39 shows that the company generated $0.39 in sales for every dollar of total assets, which is consistent with previous periods.
Overall, both the fixed asset turnover and total asset turnover ratios demonstrate that Teledyne Technologies Inc efficiently utilizes its assets to drive revenue generation, reflecting good operational performance in managing its asset base.