Axcelis Technologies Inc (ACLS)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently a company manages its assets and liabilities in generating sales. In the case of Axcelis Technologies Inc, let's analyze the activity ratios provided:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory has been sold and replaced during a specific period.
- Axcelis Technologies Inc's inventory turnover has been gradually increasing from 1.71 in 2020 to 2.00 in 2024.
- This indicates that the company is efficiently managing its inventory, with a faster rate of inventory turnover in recent years.

2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently a company collects payments from its customers.
- The data provided shows 'Not Available' for all years, indicating that data on receivables turnover is not provided or may need further analysis.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers.
- Similar to receivables turnover, the data shows 'Not Available' for all years, suggesting insufficient information on the company's payables turnover.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how well a company is utilizing its working capital to generate sales.
- Axcelis Technologies Inc's working capital turnover has fluctuated, from 1.23 in 2020 to 1.11 in 2024, with a peak of 1.46 in 2022.
- While the ratio has not followed a consistent trend, it indicates the company's ability to efficiently generate sales using its working capital.

In conclusion, Axcelis Technologies Inc appears to be managing its inventory efficiently, as seen in the increasing trend in inventory turnover. However, the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Looking at the activity ratios for Axcelis Technologies Inc:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand measures how many days it takes for a company to sell its entire inventory.
- In 2020, the company had 213.04 days of inventory on hand, which decreased to 189.29 days in 2021, and further decreased to 170.74 days in 2022.
- The trend slightly reversed in 2023 with 174.98 days of inventory on hand, and then increased to 182.90 days in 2024.

2. Days of Sales Outstanding (DSO):
- Unfortunately, data for Days of Sales Outstanding was not provided, so it is not possible to analyze how quickly the company is collecting its accounts receivable.

3. Number of Days of Payables:
- Similarly, information on the Number of Days of Payables was not provided, leading to a lack of insight into how long the company takes to pay its suppliers.

In conclusion, based on the data provided, Axcelis Technologies Inc managed to reduce its Days of Inventory on Hand over the years, indicating potentially more efficient inventory management. However, without information on DSO and payables, a complete assessment of the company's overall activity efficiency cannot be made.

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Long-term

The analysis of Axcelis Technologies Inc's long-term activity ratios reveals interesting trends.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio provides insight into how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates better asset utilization.
- The trend shows a significant decline from 15.90 in 2020 to 10.44 in 2021, suggesting a potential decrease in the efficiency of utilizing fixed assets during this period. However, the ratio shows improvement in 2022 with a value of 13.19.
- It is notable that there is no data available for 2023 and 2024, which limits the ability to assess the company's performance in utilizing fixed assets during those years.
- The company may need to closely monitor its fixed asset utilization to maintain or improve efficiency in generating revenue.

2. Total Asset Turnover:
- The total asset turnover ratio indicates how efficiently the company is using its total assets to generate sales. A higher ratio indicates better asset utilization.
- The trend for Axcelis Technologies Inc shows a slight improvement in total asset turnover from 0.76 in 2020 to 0.88 in 2021. It further increases to 0.91 in 2022 before dipping back to 0.88 in 2023 and 0.75 in 2024.
- The decrease in total asset turnover in 2024 compared to the previous years may indicate a decline in the company's ability to generate sales relative to its total assets.
- Management may need to assess the reasons behind this decline and take steps to improve asset utilization to enhance overall efficiency and profitability.

In conclusion, the analysis of Axcelis Technologies Inc's long-term activity ratios suggests fluctuations in asset turnover, indicating varying levels of efficiency in utilizing fixed and total assets to generate revenue over the years. Monitoring these ratios closely can help the company make informed decisions to improve operational efficiency and financial performance.