Westinghouse Air Brake Technologies Corp (WAB)
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 | 3.65 | 3.63 | 3.36 | 3.35 | 3.56 | 3.46 | 3.59 | 3.78 | 4.07 | 4.11 | 4.16 | 4.00 | 4.11 | 3.93 | 3.98 | 4.25 | 4.17 | 3.21 | 2.89 | 2.28 |
| Receivables turnover | 7.99 | 6.90 | 7.03 | 7.15 | 7.76 | 7.92 | 7.79 | 7.77 | 7.06 | 7.90 | 7.40 | 7.38 | 7.57 | 7.59 | 8.15 | 4.99 | 4.82 | 4.05 | 3.44 | 2.77 |
| Payables turnover | 6.67 | 6.56 | 5.95 | 5.51 | 5.56 | 5.80 | 5.84 | 6.53 | 6.79 | 7.32 | 6.95 | 7.00 | 7.42 | 7.28 | 7.11 | 6.98 | 6.40 | 5.49 | 4.42 | 3.74 |
| Working capital turnover | 11.81 | 12.44 | 17.93 | 25.50 | 9.51 | 9.13 | 9.10 | 7.52 | 8.31 | 8.00 | 7.84 | 11.91 | 11.22 | 10.94 | 16.15 | 6.63 | 8.59 | 5.59 | 5.78 | 4.24 |
The activity ratios of Westinghouse Air Brake Technologies Corp provide insights into how efficiently the company is managing its assets and liabilities.
1. Inventory turnover: The company's inventory turnover has been relatively stable around 2.70 to 2.95 times per year over the quarters. This indicates the speed at which the company is selling its inventory. A higher turnover ratio suggests efficient management of inventory levels.
2. Receivables turnover: Westinghouse Air Brake Technologies Corp has shown consistent receivables turnover ratios ranging from 5.29 to 5.75 times per year. This measures how quickly the company collects its accounts receivable. A higher ratio suggests that the company is collecting payments promptly.
3. Payables turnover: The payables turnover ratio has varied between 4.45 and 5.39 times per year. This ratio reflects how quickly the company pays its suppliers. A higher ratio indicates that the company is managing its payables efficiently.
4. Working capital turnover: The working capital turnover has fluctuated significantly between 7.68 and 26.07 times per year. This ratio measures how efficiently the company is using its working capital to generate sales. A higher ratio indicates better utilization of working capital.
Overall, Westinghouse Air Brake Technologies Corp's activity ratios suggest that the company is effectively managing its inventory, receivables, payables, and working capital to support its operations and generate revenue. Monitoring these ratios can help assess the company's operational efficiency over time.
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 | 99.94 | 100.58 | 108.74 | 109.00 | 102.57 | 105.51 | 101.78 | 96.54 | 89.72 | 88.88 | 87.69 | 91.23 | 88.84 | 92.77 | 91.81 | 85.84 | 87.43 | 113.60 | 126.10 | 160.19 |
| Days of sales outstanding (DSO) | days | 45.66 | 52.87 | 51.94 | 51.06 | 47.06 | 46.06 | 46.85 | 46.96 | 51.67 | 46.20 | 49.34 | 49.48 | 48.20 | 48.08 | 44.79 | 73.09 | 75.71 | 90.19 | 105.98 | 131.82 |
| Number of days of payables | days | 54.69 | 55.66 | 61.34 | 66.19 | 65.61 | 62.90 | 62.51 | 55.87 | 53.76 | 49.83 | 52.51 | 52.13 | 49.18 | 50.15 | 51.33 | 52.26 | 57.07 | 66.53 | 82.60 | 97.67 |
The activity ratios of Westinghouse Air Brake Technologies Corp provide insight into the efficiency of the company's operations related to inventory management, accounts receivable collection, and accounts payable management.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a slight increase in the most recent quarters, indicating that the company is holding inventory for a longer period before selling.
- The increase in DOH may signal potential issues such as overstocking or slower inventory turnover, which could tie up capital and lead to increased storage costs.
2. Days of Sales Outstanding (DSO):
- DSO reflects how long it takes the company to collect payments from its customers after making a sale.
- The trend in DSO has been relatively stable over the quarters, indicating efficient management of accounts receivable and timely collection of payments.
3. Number of Days of Payables:
- This ratio represents the average number of days a company takes to pay its suppliers.
- The trend in the number of days of payables has shown fluctuations, with an increase in the most recent quarter. A longer payment period may indicate potential cash flow challenges or strained supplier relationships.
In summary, Westinghouse Air Brake Technologies Corp should address the rising trend in Days of Inventory on Hand to optimize inventory management. Despite stable Days of Sales Outstanding, monitoring the fluctuations in the Number of Days of Payables is crucial to maintain healthy supplier relationships and cash flow management.
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 | 6.35 | 6.51 | 6.09 | 5.94 | 5.73 | 5.67 | 5.46 | 5.28 | 5.12 | 5.03 | 4.89 | 4.61 | 4.58 | 4.83 | 4.87 | 5.14 | 4.84 | 4.17 | 3.57 | 2.92 |
| Total asset turnover | 0.50 | 0.49 | 0.46 | 0.45 | 0.44 | 0.44 | 0.42 | 0.42 | 0.42 | 0.41 | 0.41 | 0.39 | 0.40 | 0.42 | 0.43 | 0.44 | 0.42 | 0.36 | 0.31 | 0.25 |
The fixed asset turnover ratio for Westinghouse Air Brake Technologies Corp has been gradually increasing over the past eight quarters, indicating that the company is generating more revenue for each dollar invested in fixed assets. This suggests improved efficiency in utilizing fixed assets to generate sales.
On the other hand, the total asset turnover ratio has also shown a positive trend over the same period, indicating that the company is becoming more efficient in generating sales from its total assets. This could be a result of effective management of both fixed and current assets to drive revenue.
Overall, the increasing trend in both the fixed asset turnover and total asset turnover ratios signifies that Westinghouse Air Brake Technologies Corp is effectively managing its assets to generate sales and is improving its operational efficiency over time.