Trimble Inc (TRMB)
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 | 12.68 | 10.59 | 7.25 | 6.44 | 6.74 | 6.19 | 5.85 | 4.81 | 4.47 | 4.86 | 5.12 | 4.81 | 4.63 | 4.40 | 4.17 | 4.51 | 4.78 | 5.16 | 5.22 | 5.61 |
| Receivables turnover | 5.41 | 5.59 | 5.34 | 6.27 | 5.44 | 6.73 | — | — | 5.51 | — | — | — | 5.08 | — | — | — | — | — | — | — |
| Payables turnover | 18.08 | 15.17 | 14.95 | 15.83 | 15.46 | 12.43 | 11.34 | 9.04 | 7.84 | 8.13 | 8.42 | 9.10 | 9.76 | 10.67 | 10.95 | 10.16 | 9.36 | 9.56 | 10.13 | 11.53 |
| Working capital turnover | 2,388.50 | 10.18 | 22.01 | 4.79 | 65.69 | — | 150.47 | 11.78 | 13.97 | 8.50 | 10.60 | 29.93 | — | — | — | — | 152.15 | 1,301.48 | 70.66 | 54.89 |
1. Inventory Turnover: Trimble Inc's inventory turnover has been gradually increasing over the past five quarters, indicating that the company is managing its inventory more efficiently. A higher inventory turnover ratio suggests that Trimble is selling its products more quickly, which is a positive sign for the company's liquidity and profitability.
2. Receivables Turnover: Trimble's receivables turnover shows some fluctuations, with a peak in March 2023. The ratio indicates how efficiently the company is collecting on credit sales. While there are some gaps in the data, the overall trend suggests that Trimble is collecting its receivables effectively, especially based on the higher ratios observed in some quarters.
3. Payables Turnover: Trimble's payables turnover has also been fluctuating but generally trending upwards. A higher payables turnover ratio indicates that Trimble is managing its payables effectively, possibly negotiating better payment terms with suppliers. This can lead to improved cash flow management and liquidity for the company.
4. Working Capital Turnover: Trimble's working capital turnover has shown significant variability, with substantial fluctuations seen over consecutive quarters. The ratio measures how efficiently Trimble is using its working capital to generate sales revenue. The high and varied values suggest that Trimble may have unique seasonal or operational factors impacting its working capital efficiency.
In conclusion, Trimble Inc's activity ratios highlight a mix of positive trends and fluctuations that can provide insights into the company's operational efficiency and management of key resources like inventory, receivables, payables, and working capital. Further analysis and comparison with industry benchmarks can provide deeper insights into Trimble's performance and potential areas for improvement.
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 | 28.79 | 34.48 | 50.32 | 56.71 | 54.16 | 58.94 | 62.40 | 75.92 | 81.62 | 75.10 | 71.31 | 75.84 | 78.82 | 82.90 | 87.56 | 80.85 | 76.43 | 70.70 | 69.89 | 65.11 |
| Days of sales outstanding (DSO) | days | 67.49 | 65.27 | 68.35 | 58.20 | 67.04 | 54.22 | — | — | 66.26 | — | — | — | 71.85 | — | — | — | — | — | — | — |
| Number of days of payables | days | 20.19 | 24.06 | 24.41 | 23.06 | 23.62 | 29.36 | 32.18 | 40.39 | 46.57 | 44.91 | 43.33 | 40.09 | 37.41 | 34.20 | 33.33 | 35.93 | 39.01 | 38.19 | 36.02 | 31.65 |
To analyze Trimble Inc's activity ratios, we will focus on the days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables. These ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its suppliers.
1. Days of Inventory on Hand (DOH):
- Trimble Inc's DOH has shown fluctuations over the different quarters. The trend indicates that the company's ability to turn inventory into sales has varied, with higher DOH values suggesting a potential buildup of inventory relative to sales.
- It is notable that DOH has generally decreased from the end of 2022 to the end of 2023, which may indicate an improvement in inventory management efficiency during this period.
2. Days of Sales Outstanding (DSO):
- The DSO metric provides insights into how efficient the company is in collecting its accounts receivable. However, there are missing data points in the table which limit our ability to analyze the trend comprehensively.
- The available data shows fluctuations in DSO, suggesting variability in the company's collection processes. A lower DSO indicates faster collection of receivables and better liquidity management.
3. Number of Days of Payables:
- Trimble Inc's number of days of payables illustrates the average number of days it takes the company to pay its suppliers. The trend reveals fluctuations over time, indicating changes in the company's payment behavior.
- Generally, a longer period of payables suggests that the company is taking more time to settle its obligations, which can positively impact cash flow by extending payment terms.
Overall, analyzing these activity ratios provides valuable insights into Trimble Inc's operational efficiency and working capital management. The company should strive to optimize these ratios to enhance its overall financial health and 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 | 18.87 | 17.61 | 15.83 | 16.88 | 16.83 | 17.24 | 16.79 | 15.96 | 15.69 | 15.59 | 15.07 | 12.90 | 12.52 | 12.51 | 12.57 | 13.32 | 13.55 | 14.21 | 15.25 | 14.91 |
| Total asset turnover | 0.40 | 0.38 | 0.37 | 0.45 | 0.51 | 0.54 | 0.55 | 0.52 | 0.52 | 0.51 | 0.50 | 0.48 | 0.46 | 0.48 | 0.47 | 0.49 | 0.49 | 0.56 | 0.56 | 0.54 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Trimble Inc's fixed asset turnover ratio has shown fluctuation over the past few quarters, ranging from a low of 12.51 to a high of 18.87. Generally, a higher fixed asset turnover ratio indicates better efficiency in asset utilization.
On the other hand, the total asset turnover ratio reflects Trimble Inc's ability to generate sales from its total assets. The company's total asset turnover ratio has also varied, with values ranging from 0.37 to 0.56. A higher total asset turnover ratio suggests that Trimble Inc is effectively generating revenue relative to its total asset base.
Overall, the trend in both ratios indicates that Trimble Inc has been efficient in utilizing its assets to generate revenue, despite some fluctuations in performance over the quarters. It is essential for the company to monitor and maintain these ratios to ensure sustained efficiency in its long-term asset management strategy.