Vishay Intertechnology Inc (VSH)
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 | 3.75 | 3.81 | 3.74 | 3.71 | 3.94 | 3.97 | 3.78 | 3.96 | 4.39 | 4.23 | 4.24 | 4.25 | 4.28 | 4.27 | 4.16 | 4.26 | 4.63 | 4.68 | 4.63 | 4.52 |
| Receivables turnover | 7.97 | 7.84 | 7.82 | — | 8.40 | — | — | — | 8.17 | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 12.71 | 11.81 | 10.55 | 11.08 | 12.89 | 10.92 | 9.85 | 10.12 | 9.26 | 10.17 | 9.61 | 9.75 | 9.79 | 11.82 | 12.57 | 12.52 | 11.48 | 14.70 | 13.39 | 11.28 |
| Working capital turnover | 2.12 | 2.01 | 2.16 | 2.26 | 2.51 | 2.50 | 2.47 | 2.39 | 2.46 | 2.31 | 2.27 | 2.22 | 2.20 | 2.20 | 2.17 | 2.05 | 2.25 | 2.34 | 2.42 | 2.56 |
Vishay Intertechnology, Inc. demonstrates a relatively stable trend in its activity ratios over the past eight quarters.
1. Inventory turnover: The company's inventory turnover has ranged between 3.71 and 3.97 over the past two years, indicating that on average, inventory is turned over approximately 3.75 times per year. This suggests that Vishay Intertechnology is managing its inventory efficiently, albeit with a slight decrease in the most recent quarters compared to the earlier quarters.
2. Receivables turnover: Vishay Intertechnology's receivables turnover has ranged between 7.82 and 8.40 over the same period, with an average turnover of around 8 times annually. This indicates that the company collects its receivables roughly every 45 days on average. The stable trend in receivables turnover suggests that the company's credit policies and collection efforts are consistent.
3. Payables turnover: The payables turnover ratio for Vishay Intertechnology has shown some variability, ranging from 10.55 to 12.89 over the past eight quarters. On average, the company pays off its payables approximately 11.70 times a year. The decreasing trend in payables turnover could imply that the company is taking longer to pay its suppliers or managing its payables less efficiently in the most recent quarters.
4. Working capital turnover: The working capital turnover ratio has fluctuated between 2.01 and 2.51, with an average turnover of about 2.35 times annually. This ratio indicates how effectively the company utilizes its working capital to generate sales. The decrease in the most recent quarters compared to earlier quarters may suggest a slight decrease in efficiency in managing working capital.
Overall, Vishay Intertechnology appears to be maintaining a relatively stable performance in managing its operations through the analyzed activity ratios. However, slight fluctuations in some ratios, particularly the payables turnover and working capital turnover, may warrant further investigation to understand the reasons behind these changes and assess their potential impact on the company's overall financial performance.
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 | 97.36 | 95.91 | 97.60 | 98.39 | 92.64 | 91.93 | 96.48 | 92.24 | 83.24 | 86.24 | 86.03 | 85.81 | 85.21 | 85.50 | 87.72 | 85.76 | 78.90 | 78.06 | 78.85 | 80.83 |
| Days of sales outstanding (DSO) | days | 45.78 | 46.53 | 46.69 | — | 43.43 | — | — | — | 44.66 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 28.72 | 30.91 | 34.60 | 32.93 | 28.31 | 33.42 | 37.06 | 36.07 | 39.42 | 35.89 | 37.98 | 37.43 | 37.30 | 30.88 | 29.04 | 29.14 | 31.79 | 24.84 | 27.26 | 32.35 |
Analyzing Vishay Intertechnology, Inc.'s activity ratios provides insights into how efficiently the company manages its inventory and accounts receivable, as well as its relationship with suppliers.
- Days of Inventory on Hand (DOH) for the most recent quarter Q4 2023 is 97.36 days, which shows a slight increase compared to the previous quarters. This indicates that, on average, inventory is held for approximately 97 days before being sold. The increase in DOH may suggest slower sales or higher inventory levels relative to previous periods.
- Days of Sales Outstanding (DSO) for Q4 2023 is 45.78 days, which is slightly lower than in the preceding quarters. A lower DSO value indicates that the company is collecting its accounts receivable more quickly. This improvement may be attributed to more efficient credit and collection policies.
- Number of Days of Payables for Q4 2023 is 28.72 days, showing a decrease from the previous quarters. This implies that the company is taking fewer days to pay its suppliers. A lower number of days of payables could indicate improved supplier relationships or stricter payment terms.
Overall, Vishay Intertechnology, Inc.'s activity ratios suggest that while inventory turnover has slightly slowed down, the company has been able to collect accounts receivable more efficiently. Additionally, the decrease in days of payables indicates a potential improvement in payables management. Monitoring and managing these activity ratios can help the company optimize its working capital and improve overall operational efficiency.
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 | 2.63 | 2.94 | 3.02 | 3.08 | 3.09 | 3.52 | 3.48 | 3.43 | 3.31 | 3.31 | 3.16 | 2.89 | 2.65 | 2.66 | 2.64 | 2.74 | 2.80 | 3.06 | 3.15 | 3.23 |
| Total asset turnover | 0.80 | 0.82 | 0.85 | 0.87 | 0.90 | 0.96 | 0.95 | 0.93 | 0.91 | 0.89 | 0.86 | 0.83 | 0.79 | 0.81 | 0.80 | 0.81 | 0.86 | 0.92 | 0.95 | 0.96 |
Vishay Intertechnology, Inc.'s long-term activity ratios provide insights into how efficiently the company generates revenue in relation to its fixed assets and total assets.
Fixed asset turnover, which measures the company's ability to generate sales from its investment in fixed assets, has shown a declining trend over the past quarters. The ratio decreased from 3.52 in Q3 2022 to 2.63 in Q4 2023. This implies that the company is generating slightly less revenue from its fixed assets, indicating a potential decrease in operational efficiency in utilizing its long-term assets to generate sales.
Total asset turnover, on the other hand, reveals how efficiently the company generates sales from all its assets. The trend for this ratio also shows a decline over the quarters, from 0.96 in Q3 2022 to 0.80 in Q4 2023. This suggests that the company's overall efficiency in generating sales from its total assets has decreased, which could be a result of various factors such as changes in the business environment or operational inefficiencies.
Overall, the decreasing trends in both fixed asset turnover and total asset turnover ratios indicate a potential decrease in efficiency in utilizing assets to generate sales for Vishay Intertechnology, Inc. This may require further investigation to identify the underlying reasons and potential areas for improvement in the company's operations.