Woodward Inc (WWD)

Activity ratios

Short-term

Turnover ratios

	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	Dec 31, 2019
Inventory turnover	4.59	4.43	4.64	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
Receivables turnover	6.91	6.51	5.61	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
Payables turnover	9.72	10.66	10.41	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
Working capital turnover	4.04	3.67	2.82	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

Woodward Inc's inventory turnover has been relatively stable over the past five quarters, ranging between 4.08 to 4.94 times. This indicates that the company is effectively managing its inventory levels and converting its inventory into sales efficiently.

The receivables turnover ratio for Woodward Inc has shown some fluctuations over the same period, with the highest turnover recorded in December 2021 and the lowest in March 2021. Generally, the company is collecting its receivables at a good pace, with the turnover ranging between 5.27 to 8.09 times.

In terms of payables turnover, Woodward Inc has been consistent in its payment cycle, with turnover ratios ranging between 8.55 to 16.19 times, indicating that the company is managing its payables efficiently and possibly benefiting from favorable credit terms.

The working capital turnover ratio for Woodward Inc has fluctuated over the past five quarters, with the highest turnover observed in September 2020 and the lowest in December 2021. This ratio measures how effectively the company is utilizing its working capital to generate sales, and the variations may indicate changes in the company's operational efficiency and liquidity management.

Overall, Woodward Inc's activity ratios reflect a balance between managing inventory, receivables, payables, and working capital effectively to support its operations and generate sales in a sustainable manner.

Average number of days

		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	Dec 31, 2019
Days of inventory on hand (DOH)	days	79.60	82.43	78.64	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
Days of sales outstanding (DSO)	days	52.82	56.10	65.10	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
Number of days of payables	days	37.57	34.23	35.05	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

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. A higher DOH indicates that the company is taking longer to turn its inventory into sales, which can tie up cash and increase the risk of obsolescence. Woodward Inc's DOH has been fluctuating over the periods, with a recent decrease from 82.43 days to 79.60 days, indicating an improvement in inventory turnover.

Days of sales outstanding (DSO) reflects the average number of days it takes for a company to collect payment after a sale is made. A lower DSO is preferable as it indicates faster collection of receivables. Woodward Inc's DSO has been varying, ranging from 52.33 days to 69.26 days, with a recent decrease from 56.10 days to 52.82 days, suggesting better collection efficiency.

Number of days of payables indicates the average number of days a company takes to pay its suppliers. A longer payable period can indicate better cash flow management as it allows the company to hold onto cash longer. Woodward Inc's days of payables have fluctuated but mostly remained stable, with a recent increase from 34.23 days to 37.57 days, suggesting a slight delay in payment to suppliers.

Overall, Woodward Inc's activity ratios show some variability over the periods, but recent trends indicate improvements in inventory turnover and collection efficiency, with a slight delay in payments to suppliers. These trends suggest that the company is managing its working capital more effectively.

Long-term

	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	Dec 31, 2019
Fixed asset turnover	3.52	3.50	3.43	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
Total asset turnover	0.76	0.74	0.72	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

Woodward Inc's fixed asset turnover has shown a generally increasing trend over the past years, reaching 3.52 in September 2024. This indicates that the company generates $3.52 in sales for every dollar invested in fixed assets. The consistency in this ratio suggests that Woodward is effectively utilizing its long-term assets to drive revenue.

In contrast, Woodward's total asset turnover ratio has fluctuated within a narrower range, with a slight downward trend from 0.73 in December 2019 to 0.76 in September 2024. This ratio signifies that the company generates $0.76 in sales for every dollar of total assets. The decreasing trend may raise concerns about the company's overall efficiency in utilizing its total assets to generate sales.

Overall, while Woodward's fixed asset turnover reflects efficient utilization of long-term assets to generate sales, the fluctuating trend in total asset turnover warrants further investigation into the company's overall asset management efficiency.