TE Connectivity Ltd (TEL)
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 | 4.63 | 5.13 | 4.77 | 4.76 | 4.48 | 4.84 | 4.11 | 4.07 | 4.23 | 4.76 | 4.90 | 5.17 | 5.58 | 5.73 | 4.99 | 5.77 | 5.40 | 5.98 | 5.39 | 5.53 |
| Receivables turnover | 5.64 | 5.38 | 5.43 | 5.37 | 5.58 | 5.66 | 5.01 | 5.03 | 5.33 | 5.08 | 4.80 | 4.46 | 4.73 | 5.11 | 5.67 | 5.29 | 5.66 | 5.77 | 5.52 | 5.67 |
| Payables turnover | 7.62 | 8.38 | 8.28 | 7.98 | 7.50 | 8.13 | 6.49 | 6.15 | 6.13 | 6.25 | 6.05 | 6.15 | 7.08 | 8.75 | 8.73 | 8.30 | 7.54 | 8.09 | 7.35 | 7.34 |
| Working capital turnover | 4.65 | 4.65 | 4.80 | 5.38 | 5.60 | 6.15 | 6.21 | 6.51 | 5.11 | 5.70 | 5.24 | 5.47 | 5.21 | 5.80 | 7.65 | 7.41 | 6.12 | 6.65 | 7.87 | 8.84 |
TE Connectivity Ltd's activity ratios provide insight into the efficiency of the company's operations.
1. Inventory turnover: TE Connectivity's inventory turnover ratio has been fairly consistent over the periods analyzed, ranging from 4.07 to 5.77. This indicates that the company is managing its inventory effectively and selling through its inventory at a relatively steady pace.
2. Receivables turnover: The receivables turnover ratio for TE Connectivity has also shown consistency, fluctuating between 4.46 and 5.67. This suggests that the company is efficient in collecting payments from its customers, with a higher turnover indicating quicker collection of accounts receivable.
3. Payables turnover: TE Connectivity's payables turnover ratio has ranged from 6.13 to 8.75, showing a relatively stable pattern. A higher turnover in payables indicates that the company is taking longer to pay its suppliers, which can sometimes be advantageous in managing cash flows.
4. Working capital turnover: The working capital turnover ratio has varied between 4.65 and 8.84, indicating fluctuations in how effectively TE Connectivity is using its working capital to generate sales revenue. Higher turnover ratios suggest that the company is utilizing its working capital efficiently to support business operations.
Overall, the activity ratios of TE Connectivity Ltd show a consistent pattern of efficiency in managing its inventory, receivables, payables, and working capital, which is crucial for maintaining a healthy and sustainable business operation.
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 | 78.85 | 71.13 | 76.45 | 76.62 | 81.39 | 75.42 | 88.85 | 89.69 | 86.28 | 76.70 | 74.46 | 70.62 | 65.41 | 63.73 | 73.22 | 63.27 | 67.63 | 61.04 | 67.70 | 65.96 |
| Days of sales outstanding (DSO) | days | 64.73 | 67.88 | 67.22 | 67.92 | 65.45 | 64.49 | 72.92 | 72.57 | 68.45 | 71.89 | 76.06 | 81.84 | 77.17 | 71.49 | 64.34 | 69.01 | 64.51 | 63.23 | 66.09 | 64.37 |
| Number of days of payables | days | 47.88 | 43.56 | 44.11 | 45.74 | 48.69 | 44.90 | 56.25 | 59.40 | 59.56 | 58.37 | 60.33 | 59.33 | 51.58 | 41.70 | 41.79 | 43.95 | 48.38 | 45.11 | 49.64 | 49.72 |
TE Connectivity Ltd's activity ratios reflect the efficiency of the company in managing its inventory, collecting receivables, and paying off its payables.
Days of inventory on hand (DOH) measures how many days of sales the company holds in inventory before it is sold. TE Connectivity's DOH has shown fluctuations over the period, ranging from 63.27 to 88.85 days. The increase in DOH may indicate slower inventory turnover or potential issues with managing inventory levels efficiently.
Days of sales outstanding (DSO) indicates the average number of days it takes for the company to collect payment after making a sale. TE Connectivity's DSO ranges from 64.34 to 81.84 days, showing some variability. A high DSO may suggest that the company is facing challenges in collecting receivables promptly, impacting cash flow.
Number of days of payables measures how long the company takes to pay its suppliers. TE Connectivity's payables days range from 41.70 to 59.56 days, indicating some variability in the payment process. A longer payment period may imply that the company is effectively utilizing trade credit to manage its working capital.
Overall, TE Connectivity Ltd's activity ratios suggest that the company may need to focus on improving inventory management, reducing DSO, and optimizing payment terms with suppliers to enhance operational efficiency and cash flow management.
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 | 4.14 | 4.25 | 4.31 | 4.29 | 4.29 | 4.55 | 4.22 | 4.04 | 3.96 | 3.94 | 3.85 | 3.56 | 3.31 | 3.32 | 3.38 | 3.66 | 3.62 | 3.75 | 3.74 | 3.88 |
| Total asset turnover | 0.69 | 0.73 | 0.75 | 0.76 | 0.76 | 0.78 | 0.73 | 0.72 | 0.71 | 0.69 | 0.68 | 0.62 | 0.62 | 0.63 | 0.65 | 0.67 | 0.66 | 0.68 | 0.69 | 0.73 |
TE Connectivity Ltd has shown consistent performance in generating revenue from its fixed assets, as indicated by its stable fixed asset turnover ratios over the timeline provided. The company's fixed asset turnover has ranged from 3.31 to 4.55, with an average of approximately 3.99. This indicates that, on average, the company generates around $4 of revenue for every $1 invested in fixed assets.
In terms of total asset turnover, TE Connectivity Ltd has also demonstrated a fairly stable performance, with ratios ranging from 0.62 to 0.78, averaging around 0.70. This suggests that the company generates revenue of approximately $0.70 for every dollar invested in total assets.
Overall, the company's ability to generate revenue from both fixed and total assets is commendable, with the fixed asset turnover showing a slightly higher efficiency in generating revenue compared to total asset turnover. This stability in turnover ratios reflects the company's effective utilization of its assets to drive revenue growth over the years.