Vishay Intertechnology Inc (VSH)

Short-term

Turnover ratios

The activity ratios of Vishay Intertechnology, Inc. provide insight into the efficiency of the company's operations in managing its assets and liabilities.

1. Inventory turnover:
The inventory turnover ratio measures how effectively the company is managing its inventory levels. A lower inventory turnover ratio may indicate excess or obsolete inventory, while a higher ratio suggests efficient inventory management. Over the past five years, Vishay's inventory turnover ratio has fluctuated between 3.75 to 4.63, showing a moderate level of consistency in managing its inventory.

2. Receivables turnover:
The receivables turnover ratio reflects how efficiently the company collects payments from customers. A higher ratio indicates better management of accounts receivable. Vishay's receivables turnover ratio has ranged from 7.39 to 8.40 over the past five years, demonstrating a relatively stable performance in collecting receivables in a timely manner.

3. Payables turnover:
The payables turnover ratio measures how quickly the company is paying its suppliers. A higher ratio suggests a shorter payment period, which could impact relationships with suppliers. Vishay's payables turnover ratio has varied between 9.26 to 12.89 over the past five years, indicating fluctuations in the company's payment practices to suppliers.

4. Working capital turnover:
The working capital turnover ratio assesses how efficiently the company is utilizing its working capital to generate revenue. A higher ratio signifies better utilization of working capital. Vishay's working capital turnover ratio has fluctuated between 2.12 to 2.51 over the last five years, showing variability in how effectively the company is using its working capital.

Overall, based on the activity ratios analyzed, Vishay Intertechnology, Inc. appears to have maintained a reasonable level of efficiency in managing its inventory, receivables, payables, and working capital over the past five years. It is important for the company to continue monitoring these ratios to ensure optimal asset and liability management in its operations.

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Average number of days

Analysis of Vishay Intertechnology, Inc.'s activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH):
- There has been an increasing trend in the Days of Inventory on Hand from 78.90 days in 2019 to 97.36 days in 2023. This indicates that the company is taking longer to sell its inventory, which could tie up capital and lead to increased holding costs.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding have fluctuated over the years, with a peak at 49.40 days in 2020 and a low of 43.43 days in 2022. The current DSO of 45.78 days suggests that the company takes approximately 46 days to collect its accounts receivable, which is relatively stable compared to previous years.

3. Number of Days of Payables:
- The Number of Days of Payables has also been variable, reaching a high of 39.42 days in 2021 and a low of 28.31 days in 2022. The current figure of 28.72 days indicates that the company takes around 29 days to pay its suppliers. This trend suggests that Vishay Intertechnology, Inc. has been managing its trade payables effectively.

In summary, Vishay Intertechnology, Inc. should focus on optimizing its inventory management to reduce the Days of Inventory on Hand while continuing to closely monitor its Days of Sales Outstanding and Number of Days of Payables to maintain a healthy working capital cycle.

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Long-term

The long-term activity ratios for Vishay Intertechnology, Inc. indicate how efficiently the company is utilizing its assets to generate sales over the years.

- Fixed asset turnover: This ratio provides insights into how effectively the company is using its fixed assets to generate revenue. Vishay Intertechnology's fixed asset turnover has shown some fluctuation over the past five years, ranging from 2.63 to 3.31. The decreasing trend from 2019 to 2020 was followed by an increase in 2021, suggesting that the company managed to improve its efficiency in utilizing fixed assets to generate sales. However, the ratio declined again in 2023 but still remains at a reasonable level, indicating that Vishay Intertechnology is effectively utilizing its fixed assets to generate revenue.

- Total asset turnover: This ratio measures the company's ability to generate sales using all of its assets. Vishay Intertechnology's total asset turnover has also shown fluctuations, ranging from 0.79 to 0.91 over the past five years. The company's total asset turnover improved from 2019 to 2021, indicating better utilization of assets to generate sales. However, in 2023, the ratio decreased to 0.80, suggesting a slight decline in the efficiency of using all assets to generate revenue.

In summary, while Vishay Intertechnology's fixed asset turnover has exhibited some variability, it generally indicates that the company is efficiently utilizing its fixed assets to generate revenue. On the other hand, the total asset turnover has also fluctuated but generally shows an improvement in asset utilization for generating sales, despite a slight decline in 2023. Additional analysis would be needed to understand the underlying factors contributing to these trends and to assess the overall effectiveness of the company's asset management strategies.