WESCO International Inc (WCC)

Short-term

Turnover ratios

The analysis of WESCO International Inc's activity ratios reveals the following trends:

1. Inventory Turnover:
The inventory turnover ratio measures how efficiently the company is managing its inventory by calculating the number of times the inventory is sold and replaced during a specific period. WESCO International Inc's inventory turnover has shown a fluctuating trend over the years, ranging from a low of 2.85 in June 2020 to a high of 7.14 in March 2020. Although there has been some variability, the ratio generally seems to have improved since the initial drop in June 2020, indicating better inventory management.

2. Receivables Turnover:
Unfortunately, there is no data available for the receivables turnover ratio for WESCO International Inc. This lack of information may make it challenging to evaluate the company's efficiency in collecting receivables from customers.

3. Payables Turnover:
Similar to receivables turnover, there is a lack of data for payables turnover, which hinders the assessment of how effectively the company is managing its payables.

4. Working Capital Turnover:
The working capital turnover ratio measures the company's efficiency in generating sales revenue relative to its working capital. A higher ratio typically indicates better utilization of working capital. WESCO International Inc's working capital turnover ratio has generally decreased over the years, starting at 4.82 in March 2020 and declining to 4.80 by December 2024. This trend suggests a slight decrease in the company's efficiency in leveraging its working capital to generate sales revenue.

In conclusion, while WESCO International Inc has demonstrated improvement in inventory turnover, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall efficiency in managing its working capital. It would be beneficial for stakeholders to monitor these ratios in the future to gain a more complete understanding of the company's operational efficiency.

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Average number of days

Activity ratios provide insights into how effectively a company manages its assets and liabilities.

1. Days of Inventory on Hand (DOH):
- WESCO International Inc's DOH has fluctuated over the years. It decreased from 51.09 days on March 31, 2020, to a low of 65.52 days on June 30, 2021. However, it increased thereafter, reaching 77.19 days on September 30, 2024, before slightly declining.
- Generally, a lower DOH indicates efficient inventory management, faster inventory turnover, and less working capital tied up in inventory. The fluctuation in DOH suggests variations in demand, production, or procurement efficiency.

2. Days of Sales Outstanding (DSO):
- There is no available data for DSO for WESCO International Inc, which hinders the evaluation of the company's accounts receivable management efficiency. DSO typically indicates how long it takes for a company to collect revenue after a sale is made.
- Companies aim to keep DSO low to ensure timely collection of receivables and maintain a healthy cash flow.

3. Number of Days of Payables:
- Similarly to DSO, there is no data provided for the number of days of payables for WESCO International Inc. This metric would have indicated how long the company takes to pay its suppliers, highlighting its ability to manage its obligations effectively.
- Efficiently managing payables can help a company optimize its working capital and maintain strong relationships with suppliers.

In conclusion, while the analysis of DOH provides some insights into WESCO International Inc's inventory management, the lack of data for DSO and payables hinders a comprehensive evaluation of the company's overall activity ratios and working capital efficiency. These ratios, when assessed collectively, offer a more comprehensive view of a company's operational efficiency and financial health.

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Long-term

WESCO International Inc's long-term activity ratios show the efficiency of the company in utilizing fixed assets and total assets to generate sales. Looking at the Fixed Asset Turnover ratio, we observe fluctuations over the years. The ratio started high at 45.47 in March 2020, then decreased significantly to 8.71 in June 2020, indicating a decrease in the company's ability to generate sales utilizing its fixed assets efficiently. Subsequently, there were fluctuations in the ratio until reaching a peak of 55.67 in September 2022. However, by December 2023, the ratio dropped to 20.29 and the data for 2024 is not available.

In terms of Total Asset Turnover, the ratio varied as well over the years, starting at 1.60 in March 2020 and dropping to 0.71 in June 2020, demonstrating a decline in the company's ability to generate sales using its total assets efficiently. The ratio improved gradually, reaching a peak of 1.49 in December 2023.

Overall, WESCO International Inc's Total Asset Turnover ratio demonstrates a more stable performance compared to the Fixed Asset Turnover ratio, indicating that the company may have been more successful in utilizing its total assets to generate sales compared to fixed assets. Both ratios are essential in evaluating the company's asset efficiency and operational performance over time.