Agilent Technologies Inc (A)

Activity ratios

Short-term

Turnover ratios

	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Inventory turnover	5.25	5.32	5.17	4.57	4.49	4.80	4.84	5.18	5.51	5.75	5.75	5.69	5.83	6.02	5.72	5.68	5.84	5.88	5.24	4.62
Receivables turnover	5.17	4.89	5.16	4.98	4.71	4.55	4.91	5.22	5.29	5.05	5.40	5.34	5.02	4.68	5.52	5.81	5.33	5.08	5.76	5.93
Payables turnover	11.11	13.12	12.27	10.53	9.25	8.60	8.77	9.64	10.20	10.71	11.31	10.64	11.07	12.24	13.71	12.79	12.53	11.28	10.95	9.66
Working capital turnover	2.46	2.63	3.04	3.06	3.21	3.54	3.69	3.53	3.37	2.99	3.17	3.27	3.04	2.71	2.66	4.20	4.25	4.57	2.69	1.80

Agilent Technologies Inc. has shown relatively stable trends in its activity ratios over the past several quarters.

The inventory turnover ratio, which measures the efficiency of managing inventory, has been fluctuating slightly around the range of 2.80 to 3.30. This indicates that the company is effectively managing its inventory levels and turning over its inventory multiple times during the year.

The receivables turnover ratio, reflecting how efficiently the company collects on credit sales, has also been consistent, ranging between 4.75 and 5.29. This suggests that Agilent Technologies is collecting its receivables in a timely manner and efficiently converting credit sales into cash.

The payables turnover ratio, which measures how quickly the company pays its suppliers, has shown some variability but generally remains at a healthy level. Agilent's payables turnover ratio has been between 5.39 and 8.06, indicating that the company is managing its accounts payable effectively and maintaining good relationships with its suppliers.

The working capital turnover ratio, which evaluates how efficiently the company utilizes its working capital in generating sales, has also been relatively steady, hovering around 2.48 to 3.72. This suggests that Agilent Technologies is utilizing its working capital efficiently to support its operations and generate revenue.

Overall, the activity ratios of Agilent Technologies Inc. indicate that the company is effectively managing its operations in terms of inventory, receivables, payables, and working capital turnover. These consistent and stable ratios reflect a good balance in the company's working capital management and operational efficiency.

Average number of days

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Days of inventory on hand (DOH)	days	69.54	68.62	70.56	79.78	81.22	75.97	75.36	70.52	66.25	63.45	63.43	64.17	62.57	60.66	63.84	64.28	62.52	62.05	69.64	79.04
Days of sales outstanding (DSO)	days	70.55	74.60	70.71	73.31	77.49	80.29	74.34	69.91	68.97	72.32	67.61	68.38	72.75	78.04	66.07	62.82	68.49	71.81	63.40	61.52
Number of days of payables	days	32.85	27.82	29.75	34.65	39.48	42.45	41.63	37.85	35.80	34.09	32.26	34.32	32.99	29.83	26.62	28.54	29.13	32.35	33.34	37.78

Agilent Technologies Inc.'s activity ratios indicate the efficiency of the company in managing its inventory, receivables, and payables.

- Days of inventory on hand (DOH) have shown slight fluctuations over the quarters, ranging from 111.73 to 128.73 days. This implies that on average, Agilent holds its inventory for approximately 113 days before selling it. Lower DOH values are generally favorable as they indicate faster inventory turnover.

- Days of sales outstanding (DSO) have also varied but generally trended downwards, from 68.96 to 76.84 days. This means that on average, Agilent takes around 70 days to collect its outstanding receivables. Lower DSO values are preferable as they indicate faster collection of receivables.

- The number of days of payables has been somewhat erratic, ranging from 45.30 to 67.72 days. This indicates that Agilent typically takes around 53 days to pay its outstanding liabilities. Higher payables days could imply that the company is effectively using trade credit terms to its advantage.

Overall, Agilent Technologies Inc. has shown reasonable efficiency in managing its inventory, receivables, and payables, with potential areas for improvement in inventory turnover and receivables collection. Additionally, the company's management of payables suggests a balance between taking advantage of trade credit terms and maintaining good relationships with suppliers.

Long-term

	Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Fixed asset turnover	5.10	5.36	5.71	5.89	5.99	6.17	6.27	6.39	6.55	6.61	6.69	6.49	6.30	6.24	6.07	6.16	6.10	5.97	5.87	5.88
Total asset turnover	0.61	0.63	0.65	0.65	0.63	0.64	0.63	0.62	0.62	0.58	0.58	0.55	0.56	0.55	0.54	0.54	0.54	0.54	0.57	0.54

Agilent Technologies Inc.'s long-term activity ratios reflect the efficiency with which the company utilizes its assets. The fixed asset turnover ratio has shown a declining trend over the past eight quarters, dropping from 6.46 in Q2 2022 to 5.13 in Q1 2024. This indicates that the company may be generating less revenue from its fixed assets over time.

On the other hand, the total asset turnover ratio has remained relatively stable, fluctuating between 0.62 and 0.66 during the same period. This suggests that Agilent is generating revenue at a consistent level relative to its total assets.

Overall, while the company's fixed asset turnover has been decreasing, its total asset turnover remains stable. Agilent may need to review its asset management strategies to improve the efficiency of utilizing fixed assets to generate revenue.