Visteon Corp (VC)

Short-term

Turnover ratios

The inventory turnover ratio for Visteon Corp decreased from 13.01 in 2020 to 9.61 in 2021, indicating that the company's efficiency in managing its inventory decreased during this period. However, there was a slight improvement in the inventory turnover ratio in 2024 to 11.78, suggesting better inventory management efficiency in that year compared to 2021 and 2022.

The receivables turnover ratio is not available for any of the years provided, indicating that specific data on how quickly the company collects its accounts receivable is not present in the dataset.

Similarly, the payables turnover ratio is not available for any of the years provided, meaning that information on how effectively the company pays its suppliers is not included in the data.

The working capital turnover ratio for Visteon Corp remained relatively stable over the years, with values ranging between 4.85 to 5.77. This suggests that the company generated sales revenue efficiently concerning its working capital during the specified period.

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Average number of days

Visteon Corp's activity ratios provide insights into how efficiently the company manages its inventory, sales, and payables.

1. Days of Inventory on Hand (DOH):
- Visteon Corp's average inventory turnover has been relatively stable over the years, ranging from 28.05 days in 2020 to 30.97 days in 2024.
- A lower number of days of inventory on hand indicates that the company is selling its inventory quickly, which can be a positive sign of efficient inventory management.

2. Days of Sales Outstanding (DSO):
- The data provided does not include any information on Days of Sales Outstanding, which is a measure of how quickly the company collects its accounts receivable.
- Without this information, it is challenging to evaluate the efficiency of Visteon Corp's accounts receivable management.

3. Number of Days of Payables:
- Similar to DSO, data on the number of days of payables is not available for Visteon Corp.
- This metric would have provided insights into how long the company takes to pay its suppliers, which is crucial for managing working capital effectively.

Overall, based on the provided data on Days of Inventory on Hand, Visteon Corp appears to be efficiently managing its inventory turnover, with a relatively consistent performance over the years. However, without information on DSO and the number of days of payables, a comprehensive assessment of the company's overall activity and working capital management is limited.

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Long-term

The fixed asset turnover ratio for Visteon Corp has shown a positive trend over the years. The ratio increased from 4.19 in 2020 to 7.70 in 2022, indicating that the company generated more sales relative to its investment in fixed assets during this period. However, the data is missing for 2023 and 2024, which limits the ability to assess the trend for these years.

On the other hand, the total asset turnover ratio reflects how efficiently the company utilizes all its assets to generate sales. Visteon Corp's total asset turnover ratio increased from 1.12 in 2020 to 1.53 in 2022, suggesting that the company became more efficient in generating sales with its total assets during this period. However, there was a slight decrease in this ratio to 1.35 in 2024.

Overall, the improving trend in both the fixed asset turnover and total asset turnover ratios up to 2022 indicates that Visteon Corp was utilizing its assets effectively to generate sales. The decline or missing data in the later years may warrant further investigation to understand any changes in the company's asset utilization efficiency.