NCR Voyix Corporation (VYX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.64 | 3.79 | 1.89 | 7.79 | 6.37 |
| Receivables turnover | 7.24 | 6.98 | 7.46 | 5.56 | 4.64 |
| Payables turnover | 1.83 | 2.28 | 1.72 | 7.41 | 5.95 |
| Working capital turnover | — | 20.49 | 105.24 | 15.92 | 11.41 |
NCR Voyix Corporation's activity ratios provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital over the past five years.
1. Inventory Turnover:
- The inventory turnover ratio has shown variation over the years, ranging from 1.89 to 7.79.
- A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be positive for cash flow and minimizing storage costs.
2. Receivables Turnover:
- The receivables turnover ratio has generally been increasing over the years, indicating that the company is collecting its receivables more efficiently.
- A higher receivables turnover ratio suggests that the company's credit and collection policies are effective.
3. Payables Turnover:
- The payables turnover ratio has fluctuated over the years, with a range of 1.72 to 7.41.
- A higher payables turnover ratio implies that the company is paying its suppliers more quickly, which can impact cash flow management.
4. Working Capital Turnover:
- The working capital turnover ratio has shown significant fluctuations, with a high of 105.24 in 2021 and becoming negative in 2023.
- A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital invested.
Overall, analyzing these activity ratios together can provide a holistic view of NCR Voyix Corporation's operational efficiency and effectiveness in managing its resources to drive revenue generation and cash flow.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 100.34 | 96.38 | 193.54 | 46.84 | 57.30 |
| Days of sales outstanding (DSO) | days | 50.41 | 52.29 | 48.91 | 65.68 | 78.65 |
| Number of days of payables | days | 199.49 | 160.36 | 212.02 | 49.26 | 61.39 |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities.
1. Days of Inventory on Hand (DOH):
- The DOH indicates how many days it takes for a company to sell its average inventory.
- NCR Voyix Corporation's DOH has fluctuated over the past five years, with a significant increase in 2021 and a subsequent decrease in 2023.
- A higher DOH can suggest obsolete inventory or inefficiencies in sales and production processes, while a lower DOH may indicate efficient inventory management.
2. Days of Sales Outstanding (DSO):
- The DSO metric measures the average number of days it takes a company to collect its accounts receivable.
- NCR Voyix Corporation's DSO has shown variability, with improvements in 2021 and 2022 compared to 2019 and 2020.
- A lower DSO is favorable as it signifies faster cash conversion from sales, reflecting effective credit policies and collection procedures.
3. Number of Days of Payables:
- The number of days of payables ratio indicates the average number of days a company takes to pay its suppliers.
- NCR Voyix Corporation's days of payables has been inconsistent, with significant fluctuations observed across the years.
- A higher number of days of payables may imply an extended payment period benefiting cash flow, while a lower number of days may suggest tighter liquidity management.
In conclusion, NCR Voyix Corporation's activity ratios exhibit variability in managing inventory, receivables, and payables over the past five years, indicating fluctuations in operational efficiency and working capital management. Additional analysis and comparison with industry benchmarks could provide further insights into the company's performance and areas for improvement.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 16.43 | 33.30 | 10.18 | 16.64 | 16.74 |
| Total asset turnover | 0.70 | 0.66 | 0.61 | 0.74 | 0.77 |
The fixed asset turnover ratio for NCR Voyix Corporation has fluctuated over the past five years, ranging from a low of 10.18 in 2021 to a high of 33.30 in 2022. This ratio indicates the company's efficiency in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio suggests that the company is utilizing its fixed assets more effectively to generate sales.
On the other hand, the total asset turnover ratio has also varied, with a low of 0.61 in 2021 and a high of 0.77 in 2019. This ratio reflects the company's ability to generate sales relative to its total assets. A higher total asset turnover ratio generally indicates better efficiency in utilizing all assets to generate sales.
Comparing the two ratios, it is evident that the company has been more efficient in generating sales from its fixed assets compared to its total assets. It is important for the company to focus on improving its total asset turnover ratio to ensure that all assets are being effectively utilized to drive revenue growth. Additionally, analyzing the trends in these ratios over time can provide insights into the company's operational efficiency and asset management strategies.