Westinghouse Air Brake Technologies Corp (WAB)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 3.76 3.65 3.65 3.62 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
Receivables turnover 8.96 7.69 7.90 7.93 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
Payables turnover 6.69 6.49 6.49 6.62 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
Working capital turnover 8.96 9.33 7.27 5.91 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

Westinghouse Air Brake Technologies Corp's inventory turnover ratio has been fluctuating over the past few years, ranging from 3.35 to 4.25. The decreasing trend in this ratio indicates that the company is taking longer to sell its inventory, which may lead to excess inventory levels or inefficiencies in managing inventory.

In terms of receivables turnover, the company has shown variations in its performance with the ratio fluctuating between 6.90 and 8.96. A higher receivables turnover ratio suggests that the company is efficient in collecting payments from its customers, whereas a lower ratio could indicate potential issues with credit policies or collection practices.

The payables turnover ratio for Westinghouse Air Brake Technologies Corp has been declining from 7.42 to 5.51, signifying that the company is taking longer to pay its suppliers. While a lower payables turnover ratio could indicate strengthened relationships with suppliers, it may also suggest cash flow constraints or potential liquidity issues.

The working capital turnover ratio for the company has shown significant variations, with values ranging from 5.91 to 25.50. A higher working capital turnover ratio indicates that the company is effectively utilizing its working capital to generate sales, whereas a lower ratio may suggest inefficiencies in capital management or underutilization of resources.

Overall, these activity ratios provide valuable insights into the operational efficiency and effectiveness of Westinghouse Air Brake Technologies Corp in managing its inventory, receivables, payables, and working capital to support its core business activities.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 97.10 100.06 99.96 100.92 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
Days of sales outstanding (DSO) days 40.76 47.45 46.18 46.02 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
Number of days of payables days 54.55 56.25 56.28 55.17 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

Westinghouse Air Brake Technologies Corp's Days of Inventory on Hand (DOH) has shown an increasing trend from 85.84 days as of March 31, 2020, to 97.10 days as of December 31, 2024. This indicates that the company is holding onto its inventory for a longer period, which could tie up working capital and may suggest potential issues related to inventory management.

The Days of Sales Outstanding (DSO) decreased initially from 73.09 days as of March 31, 2020, to 40.76 days as of December 31, 2024. This could indicate that the company has been efficient in collecting accounts receivable and converting sales into cash, which is a positive sign of effective credit management and liquidity.

The Number of Days of Payables has also shown an increasing trend from 52.26 days as of March 31, 2020, to 54.55 days as of December 31, 2024. This suggests that the company is taking longer to pay its suppliers, which could be beneficial in terms of preserving cash but may also strain supplier relationships if not managed effectively.

Overall, the analysis of Westinghouse Air Brake Technologies Corp's activity ratios indicates certain areas of concern, particularly in inventory management. The company should focus on optimizing inventory levels, continue its efficient accounts receivable collection practices, and carefully manage payables to maintain a healthy working capital cycle.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 7.13 7.09 6.97 6.73 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
Total asset turnover 0.55 0.55 0.53 0.52 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

Westinghouse Air Brake Technologies Corp's fixed asset turnover has shown a consistent upward trend over the observed periods, indicating that the company is generating more sales revenue relative to its investment in fixed assets. This suggests efficient utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has fluctuated slightly but generally increased over time, implying that the company has been able to generate more sales relative to its total assets. This could indicate effective management of both fixed and current assets to drive revenue growth.

Overall, the company's long-term activity ratios reflect a positive trend in asset utilization efficiency, indicating effective management of assets to drive sales and revenue growth over time.