WESCO International Inc (WCC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.89 | 4.91 | 4.79 | 5.41 | 4.62 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 4.80 | 4.47 | 4.75 | 5.52 | 4.89 |
Based on the provided data, we can analyze the activity ratios of WESCO International Inc as follows:
1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company manages its inventory. A higher ratio suggests better inventory management. Over the years, WESCO has shown a fluctuating trend, with the ratio increasing from 4.62 in 2020 to 5.41 in 2021, then slightly decreasing to 4.79 in 2022, and further fluctuating around 4.90 in 2023 and 2024. This indicates that the company is able to sell and replenish its inventory at a moderate pace.
2. Receivables Turnover:
- Unfortunately, data for receivables turnover is not available for any of the years provided. Receivables turnover ratio is crucial in understanding how effectively a company is collecting on credit sales from customers.
3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not available for the years provided. Payables turnover ratio sheds light on how efficiently a company is managing its accounts payable.
4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales. A higher ratio typically indicates efficient utilization of working capital. WESCO's working capital turnover has fluctuated over the years, with a peak of 5.52 in 2021, then declining to 4.75 in 2022, and stabilizing around 4.80 in 2023 and 2024. This suggests that the company is effectively leveraging its working capital to support its operations.
In summary, while WESCO International Inc has shown fluctuations in its activity ratios, the company generally demonstrates moderate efficiency in managing its inventory and working capital. Lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall activity.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 74.72 | 74.33 | 76.20 | 67.46 | 78.99 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Activity ratios help in assessing how efficiently a company manages its assets and operations. Let's analyze WESCO International Inc's activity ratios based on the provided data:
1. Days of Inventory on Hand (DOH):
- The trend in WESCO's DOH shows a fluctuation over the years, ranging from 67.46 days to 78.99 days.
- A decreasing trend in DOH indicates that WESCO is managing its inventory more efficiently, turning over its inventory quicker.
- However, the latest DOH of 74.72 days in December 31, 2024, is slightly higher compared to the earlier years, suggesting a potential slowdown in inventory management efficiency.
2. Days of Sales Outstanding (DSO):
- The data does not provide information on DSO for WESCO International Inc for the years indicated.
- DSO measures how long it takes for a company to collect its accounts receivable. Without this data, it is challenging to assess WESCO's efficiency in collecting revenue from its customers.
3. Number of Days of Payables:
- Similarly, the data does not include information on the number of days of payables for WESCO International Inc.
- This ratio helps in understanding how long a company takes to pay its suppliers or outstanding bills. Without this information, the analysis of WESCO's payables management efficiency remains inconclusive.
In summary, based on the provided data, WESCO International Inc's inventory management efficiency has shown fluctuations over the years, with a slight increase in DOH in the most recent year. However, without data on DSO and payables management, a comprehensive analysis of WESCO's overall activity ratios is limited.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 53.19 | 48.07 | 30.88 |
| Total asset turnover | 1.45 | 1.49 | 1.45 | 1.44 | 1.04 |
WESCO International Inc's fixed asset turnover has shown a positive trend over the years, increasing from 30.88 in December 2020 to 53.19 in December 2022. However, there is missing data for the ratios in December 2023 and 2024. This indicates that WESCO International Inc is generating more sales from its fixed assets, which is a positive sign of operational efficiency.
In terms of total asset turnover, WESCO International Inc has also exhibited a generally increasing trend, from 1.04 in December 2020 to 1.45 in December 2024. The company is becoming more effective at generating sales from its total assets, showing an improvement in overall asset utilization efficiency.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that WESCO International Inc is utilizing its assets more efficiently to generate sales, which could potentially lead to improved profitability and overall financial performance.