Visteon Corp (VC)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios for Visteon Corp:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company is managing its inventory. Visteon Corp's inventory turnover has been gradually decreasing from 14.11 in March 2020 to 10.56 in September 2024. A decreasing trend in inventory turnover may indicate slower sales or excess inventory levels, which could potentially lead to carrying costs and obsolescence issues.

2. Receivables Turnover:
- Unfortunately, receivables turnover data is not available for the specified periods. Receivables turnover ratio helps assess how quickly the company collects payments from its customers. A higher ratio indicates quicker collection, whereas a lower ratio may signal potential collection issues.

3. Payables Turnover:
- Payables turnover data is not provided for the periods mentioned. Payables turnover ratio helps evaluate how quickly a company pays its suppliers. A higher ratio suggests the company is efficiently managing its payables, while a lower ratio could indicate liquidity challenges or inefficient payment processes.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate revenue. Visteon Corp's working capital turnover has fluctuated between 3.01 in June 2020 to 5.98 in September 2023. A higher turnover ratio indicates effective utilization of working capital resources to generate sales.

Overall, a detailed analysis of activity ratios provides insights into Visteon Corp's management of inventory, receivables, payables, and working capital. Monitoring these ratios over time can help stakeholders evaluate the company's operational efficiency and financial performance.

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Average number of days

The analysis of Visteon Corp's activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH):
- Visteon Corp's inventory turnover has shown fluctuating trends over the years studied.
- The DOH metric increased steadily from March 31, 2020, to March 31, 2022, indicating a longer time for inventory to be sold.
- However, from March 31, 2022, to December 31, 2024, there was a general decline in DOH, suggesting better inventory management and faster turnover.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for the periods under review, making it difficult to analyze Visteon Corp's efficiency in collecting accounts receivable.
- Without the DSO metric, it is challenging to assess the company's management of credit and its ability to convert sales into cash in a timely manner.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is also not provided for the periods in question.
- Without this information, it is not possible to evaluate how long Visteon Corp takes to pay its suppliers and manage its trade payables.

In conclusion, while the analysis of Visteon Corp's activity ratios based on the available data provides insights into inventory management efficiency, the lack of information on DSO and payables limits a comprehensive assessment of the company's overall working capital management and liquidity position.

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Long-term

The Fixed Asset Turnover ratio for Visteon Corp has shown fluctuations over the past few years, ranging from a low of 4.19 in December 2020 to a high of 11.01 in June 2023. This ratio indicates the company's efficiency in generating sales from its fixed assets. Generally, a higher ratio is preferred as it suggests better utilization of fixed assets to generate revenue. Visteon's fixed asset turnover has improved significantly from 2020 to 2023, peaking at 11.01 in June 2023, which reflects a positive trend in asset utilization.

On the other hand, the Total Asset Turnover ratio, which measures the company's ability to generate sales from its total assets, has also shown variability. The ratio fluctuated between 1.07 and 1.74 during the same period. A higher total asset turnover ratio signifies that the company is generating more sales from its total assets.

Overall, while both ratios have shown fluctuations, Visteon Corp has displayed improvements in asset turnover efficiency over the years, particularly in terms of utilizing fixed assets to generate sales. It is important for the company to continue monitoring and managing its asset turnover ratios to ensure optimal utilization of its assets in generating revenue.