Woodward Inc (WWD)
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 | 4.75 | 4.94 | 4.61 | 4.08 | 3.78 | 4.08 | 4.02 | 4.07 | 4.33 | 4.60 | 4.45 | 4.50 | 4.48 | 4.96 | 3.41 | 3.52 | 3.70 | 3.57 | 4.62 | 4.35 |
| Receivables turnover | 6.13 | 5.74 | 5.64 | 5.76 | 6.97 | 6.29 | 6.82 | 6.56 | 8.09 | 6.63 | 5.56 | 5.27 | 6.61 | 6.40 | 7.25 | 6.64 | 7.82 | 6.75 | 6.18 | 5.72 |
| Payables turnover | 10.48 | 10.91 | 11.00 | 10.52 | 9.90 | 9.10 | 10.37 | 10.46 | 11.78 | 11.30 | 11.65 | 11.69 | 12.59 | 16.19 | 10.72 | 8.55 | 8.82 | 7.68 | 10.10 | 8.94 |
| Working capital turnover | 3.15 | 3.36 | 3.02 | 3.17 | 3.34 | 3.05 | 2.75 | 2.31 | 1.99 | 2.02 | 1.98 | 2.10 | 2.50 | 3.02 | 3.82 | 3.90 | 5.47 | 5.08 | 4.35 | 4.47 |
Inventory turnover:
Woodward Inc's inventory turnover has been relatively stable over the past eight quarters, ranging from 3.37 to 4.32. A higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels and selling its products quickly. The average inventory turnover for the period is approximately 3.82.
Receivables turnover:
The receivables turnover ratio for Woodward Inc has fluctuated throughout the quarters, with values ranging from 3.60 to 4.09. A higher receivables turnover ratio suggests that the company is efficiently collecting payments from its customers. The average receivables turnover for the period is around 3.87.
Payables turnover:
Woodward Inc's payables turnover has shown a consistent upward trend over the quarters, with values ranging from 8.06 to 9.65. A higher payables turnover ratio indicates that the company is paying its suppliers quickly. The average payables turnover for the period is approximately 9.17.
Working capital turnover:
The working capital turnover ratio for Woodward Inc has varied across the quarters, with values ranging from 2.34 to 3.42. A higher working capital turnover ratio signifies that the company is effectively utilizing its working capital to generate sales. The average working capital turnover for the period is around 3.01.
Overall, Woodward Inc has shown generally stable or improving trends in its activity ratios, indicating efficient management of inventory, receivables, payables, and working capital over the past eight quarters.
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 | 76.90 | 73.94 | 79.11 | 89.36 | 96.47 | 89.52 | 90.72 | 89.78 | 84.39 | 79.37 | 82.05 | 81.05 | 81.43 | 73.56 | 107.09 | 103.66 | 98.58 | 102.14 | 78.98 | 84.00 |
| Days of sales outstanding (DSO) | days | 59.57 | 63.61 | 64.76 | 63.33 | 52.33 | 57.99 | 53.54 | 55.63 | 45.13 | 55.09 | 65.66 | 69.26 | 55.21 | 57.02 | 50.33 | 54.93 | 46.67 | 54.04 | 59.05 | 63.77 |
| Number of days of payables | days | 34.82 | 33.46 | 33.19 | 34.68 | 36.88 | 40.12 | 35.19 | 34.91 | 30.98 | 32.30 | 31.33 | 31.23 | 28.99 | 22.55 | 34.06 | 42.71 | 41.40 | 47.52 | 36.14 | 40.82 |
To analyze Woodward Inc's activity ratios, we will focus on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.
1. Days of Inventory on Hand (DOH):
- Woodward Inc's average days of inventory on hand for Q1 2024 is 87.80 days, which has decreased from the previous quarter but remains relatively high compared to historical data.
- The company has shown a declining trend in inventory holding period from Q1 2023 to Q4 2023, suggesting possible improvements in inventory management efficiency.
- However, further monitoring is required to ensure inventory levels are optimal and align with sales demand to avoid overstocking or stockouts.
2. Days of Sales Outstanding (DSO):
- Woodward Inc's average days of sales outstanding for Q1 2024 is 93.47 days, showing a slight decrease from the previous quarter.
- The DSO has fluctuated over the quarters, indicating possible challenges in collecting receivables efficiently.
- It is crucial for Woodward Inc to manage credit policies effectively and monitor customer payment behaviors to reduce DSO and improve cash flow.
3. Number of Days of Payables:
- Woodward Inc's average number of days of payables for Q1 2024 is 39.75 days, showing consistency with the previous quarter.
- The company has maintained a stable payment period to suppliers, which can impact cash flow management and relationships with vendors.
- A balanced approach is needed to optimize working capital by extending payment terms while maintaining good supplier relationships.
In conclusion, Woodward Inc should continue to monitor and analyze its activity ratios to optimize inventory management, enhance receivables collection efficiency, and manage payables effectively to improve overall working capital management and financial performance.
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 | 3.26 | 3.14 | 3.00 | 2.77 | 2.63 | 2.58 | 2.50 | 2.41 | 2.37 | 2.33 | 2.29 | 2.23 | 2.32 | 2.48 | 2.66 | 2.85 | 2.84 | 2.71 | 2.68 | 2.53 |
| Total asset turnover | 0.73 | 0.71 | 0.68 | 0.64 | 0.62 | 0.62 | 0.61 | 0.57 | 0.55 | 0.54 | 0.53 | 0.54 | 0.58 | 0.63 | 0.69 | 0.72 | 0.73 | 0.72 | 0.71 | 0.68 |
Long-term activity ratios provide insight into how efficiently a company is utilizing its long-term assets to generate revenue.
1. Fixed asset turnover: This ratio measures how efficiently the company is generating revenue from its fixed assets. A higher fixed asset turnover indicates better utilization of fixed assets. Woodward Inc's fixed asset turnover has generally been increasing over the quarters, from 2.44 in Q2 2022 to 3.31 in Q1 2024. This indicates that the company has been able to generate more revenue from its fixed assets over time.
2. Total asset turnover: This ratio measures how efficiently the company is utilizing all its assets to generate revenue. A higher total asset turnover indicates better overall asset utilization. Woodward Inc's total asset turnover has also been increasing over the quarters, from 0.58 in Q2 2022 to 0.75 in Q1 2024. This suggests that the company has been able to generate more revenue relative to its total assets over time.
Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios indicate that Woodward Inc has been improving its efficiency in generating revenue from its assets. This signifies positive management of long-term assets and potentially improved profitability for the company.