Vishay Intertechnology Inc (VSH)

Short-term

Turnover ratios

The activity ratios for Vishay Intertechnology Inc provide insights into how efficiently the company is managing its resources.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times the company's inventory is sold and replaced over a period.
- Vishay Intertechnology Inc's inventory turnover has seen a slight increase from 4.28 in 2020 to 4.39 in 2021, but a decrease to 3.35 in 2024.
- A higher inventory turnover indicates efficient inventory management, but the decreasing trend in recent years suggests a need to monitor inventory levels closely to prevent overstocking or understocking.

2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently the company is collecting payments from its customers.
- The data provided shows that receivables turnover was not available for any of the years, which could indicate that the company does not rely heavily on credit sales, or the information may not be publicly disclosed.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers for goods or services.
- Similar to receivables turnover, the data shows that payables turnover information was not available for the years provided. This could mean that the company's payment practices are not publicly disclosed, or it may not be a significant factor in their operations.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently the company is using its working capital to generate sales revenue.
- Vishay Intertechnology Inc's working capital turnover has shown some fluctuations, with a high of 2.51 in 2022 and a low of 2.12 in 2023.
- A higher working capital turnover ratio indicates effective utilization of resources, but the fluctuating values suggest that the company may need to focus on optimizing its working capital management to improve overall efficiency.

In summary, while Vishay Intertechnology Inc demonstrates decent efficiency in managing its inventory and working capital, the lack of data on receivables and payables turnover limits a comprehensive assessment of the company's overall activity ratios.

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Average number of days

Based on the provided data, Vishay Intertechnology Inc's activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The company's DOH shows the average number of days it takes for inventory to be sold or used up.
- The trend indicates an increase in inventory holding period over the years, from 85.21 days in 2020 to 108.87 days in 2024.
- A higher DOH may suggest slower inventory turnover, tying up more capital in inventory and potentially indicating inefficiency in managing inventory levels.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data provided for DSO, which would have reflected the average number of days it takes for the company to collect revenue from sales.
- DSO is used to assess the efficiency of the company in collecting its accounts receivable.

3. Number of Days of Payables:
- Similarly, there is no data given for the number of days of payables, which would have shown how long the company takes to pay its suppliers.
- This ratio is crucial as it indicates the time the company is taking to settle its outstanding debts.

Overall, it is important for Vishay Intertechnology Inc to closely monitor and manage these activity ratios to ensure efficient working capital management and optimize its cash flows. The increasing trend in inventory holding period warrants attention to prevent overstocking and potential cash flow issues.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Vishay Intertechnology Inc, we observe an improvement in this ratio over the years, with the ratio increasing from 2.65 in 2020 to 2.95 in 2021 before slightly decreasing to 2.77 in 2022. However, there is missing data for 2023 and 2024.

The increasing trend in the Fixed Asset Turnover ratio indicates that Vishay Intertechnology Inc is becoming more efficient in generating sales revenue per dollar invested in fixed assets. The company has been able to enhance its operational efficiency and utilize its fixed assets more effectively.

On the other hand, Total Asset Turnover reflects how well a company is generating sales from its total assets. In the case of Vishay Intertechnology Inc, there has been a fluctuation in this ratio over the years. The Total Asset Turnover ratio increased from 0.79 in 2020 to 0.91 in 2021, indicating a more efficient use of total assets to generate revenue. However, the ratio decreased to 0.90 in 2022, and further declined to 0.80 in 2023, and 0.71 in 2024.

The declining trend in the Total Asset Turnover ratio may indicate that Vishay Intertechnology Inc is facing challenges in generating sales in proportion to its total assets. It could signal potential inefficiencies in asset utilization or issues with sales generation.

Overall, analyzing both the Fixed Asset Turnover and Total Asset Turnover ratios provides valuable insights into Vishay Intertechnology Inc's long-term activity efficiency and asset utilization. The company should continue to focus on optimizing its asset turnover ratios to improve its overall operational performance.