Axcelis Technologies Inc (ACLS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.09 | 2.14 | 1.93 | 1.71 | 1.42 |
| Receivables turnover | 5.19 | 5.42 | 6.34 | 5.46 | 4.09 |
| Payables turnover | 11.75 | 8.31 | 9.89 | 11.49 | 7.85 |
| Working capital turnover | 1.42 | 1.46 | 1.41 | 1.23 | 1.12 |
Axcelis Technologies Inc's activity ratios provide insights into the efficiency of managing its assets and working capital. The inventory turnover ratio indicates that the company is effectively managing its inventory, with a slight decrease from 2.14 in 2022 to 2.09 in 2023. This suggests that inventory is being sold and replenished approximately 2.09 times a year.
The receivables turnover ratio has shown a fluctuating trend over the past five years, indicating the company's ability to collect outstanding receivables. The decreasing trend from 6.34 in 2021 to 5.19 in 2023 suggests a slight decrease in the efficiency of collecting receivables.
On the other hand, the payables turnover ratio has been consistently increasing, reaching 11.75 in 2023. This indicates that the company is taking longer to pay its suppliers, potentially improving cash flow and working capital management.
The working capital turnover ratio has also shown an increasing trend, reflecting the company's ability to generate revenue relative to its working capital. The ratio increased from 1.12 in 2019 to 1.42 in 2023, indicating that the company is generating more revenue with each dollar of working capital.
Overall, Axcelis Technologies Inc's activity ratios suggest improvements in managing inventory levels, payables, and working capital turnover, although there are fluctuations in receivables turnover that may warrant further attention to ensure efficient collection of outstanding receivables.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 174.98 | 170.74 | 189.29 | 213.04 | 257.70 |
| Days of sales outstanding (DSO) | days | 70.37 | 67.36 | 57.53 | 66.81 | 89.14 |
| Number of days of payables | days | 31.06 | 43.91 | 36.91 | 31.76 | 46.53 |
The activity ratios of Axcelis Technologies Inc provide insights into the efficiency of the company's operations in managing its inventory, collecting receivables, and paying its suppliers.
1. Days of Inventory on Hand (DOH):
- Over the past five years, the days of inventory on hand have shown a fluctuating trend, ranging from 174.98 days in 2023 to 257.70 days in 2019.
- The decreasing trend from 2019 to 2023 indicates an improvement in inventory management efficiency, as the company is holding inventory for fewer days before selling it.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have also varied during the same period, with figures ranging from 57.53 days in 2021 to 89.14 days in 2019.
- The decreasing trend from 2019 to 2021 suggests that the company has been successful in collecting receivables more quickly, indicating effective management of credit and collection processes.
3. Number of Days of Payables:
- The number of days of payables shows fluctuations over the five-year period, with values ranging from 31.06 days in 2023 to 46.53 days in 2019.
- The decreasing trend from 2019 to 2023 indicates that the company has been able to stretch its payables period, possibly improving cash flow management and working capital efficiency.
Overall, the activity ratios reflect Axcelis Technologies Inc's efforts in optimizing its working capital management by efficiently managing inventory levels, collecting receivables promptly, and effectively managing payables. The decreasing trends in inventory holding days and days of sales outstanding, along with the improvement in payable days, signify enhanced operational efficiency and financial performance over the years.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 20.95 | 23.19 | 18.94 | 15.90 | 13.54 |
| Total asset turnover | 0.88 | 0.91 | 0.88 | 0.76 | 0.63 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenues. Axcelis Technologies Inc has shown a increasing trend in this ratio over the past five years, indicating that the company is becoming more efficient in generating sales from its fixed assets. The ratio was 13.54 in 2019 and has steadily increased to 20.95 in 2023.
On the other hand, the total asset turnover ratio measures the efficiency of the company in generating sales from all its assets. Axcelis Technologies Inc has maintained a fairly stable total asset turnover ratio over the past five years, with values ranging from 0.63 in 2019 to 0.88 in 2023. This suggests that the company is generating consistent revenue relative to its total assets.
Overall, the upward trend in the fixed asset turnover ratio indicates an improvement in the company's operational efficiency, while the stable total asset turnover ratio reflects a consistent ability to generate sales from all assets. These ratios collectively suggest that Axcelis Technologies Inc is effectively utilizing its assets to drive revenue growth.