Autodesk Inc (ADSK)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 6.28 | 5.21 | 6.12 | 5.89 | 5.02 |
| Payables turnover | 5.11 | 4.71 | 3.45 | 2.75 | 3.88 |
| Working capital turnover | — | — | — | — | — |
Based on the provided activity ratios for Autodesk Inc over the past five years, we can draw several insights:
1. Receivables turnover:
- Autodesk's receivables turnover has shown a positive trend over the years, indicating that the company is collecting its accounts receivable more efficiently.
- The increase from 5.02 in Jan 2020 to 6.28 in Jan 2024 signifies that Autodesk has been able to convert its accounts receivable into cash at a faster rate.
2. Payables turnover:
- Autodesk's payables turnover has fluctuated over the years but generally shows an increasing trend.
- The payables turnover ratio increased from 3.88 in Jan 2020 to 5.11 in Jan 2024, suggesting that the company is able to pay off its trade payables more quickly.
3. Inventory turnover and Working capital turnover are not available for analysis, which limits our ability to assess Autodesk's efficiency in managing its inventory and working capital.
Overall, based on the analysis of the receivables turnover and payables turnover ratios, Autodesk Inc seems to be improving its efficiency in managing its accounts receivable and accounts payable, which can positively impact its cash flow and overall financial performance.
Average number of days
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 58.17 | 70.08 | 59.59 | 61.93 | 72.71 |
| Number of days of payables | days | 71.43 | 77.56 | 105.66 | 132.68 | 94.03 |
Days of Inventory on Hand (DOH) for Autodesk Inc was not provided in the table, which makes it challenging to assess the efficiency of managing inventory. However, the company's Days of Sales Outstanding (DSO) has shown improvement over the past five years, decreasing from 72.71 days in 2020 to 58.17 days in 2024. This indicates that Autodesk is collecting its accounts receivable more efficiently.
In contrast, the Number of Days of Payables has fluctuated over the same period, with a significant increase in 2021 compared to 2020, but a decreasing trend in the following years. A decreasing trend in Days of Payables may signal a more aggressive approach to managing payment terms with suppliers.
Overall, the improvement in DSO suggests that Autodesk Inc has been successful in managing its accounts receivable, which could positively impact its cash flow and liquidity position. The fluctuation in Days of Payables warrants further investigation to understand the company's relationship with suppliers and its working capital management strategies.
See also:
Autodesk Inc Short-term (Operating) Activity Ratios
Long-term
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 45.43 | 34.76 | 27.07 | 19.66 | 20.25 |
| Total asset turnover | 0.55 | 0.53 | 0.51 | 0.52 | 0.53 |
The fixed asset turnover ratio for Autodesk Inc has shown a consistent increasing trend over the past five years, indicating that the company has been able to generate more sales revenue relative to its investment in fixed assets. This signifies improved efficiency in utilizing its long-term assets to generate revenue.
On the other hand, the total asset turnover ratio has remained relatively stable around the 0.5 mark over the same period. This suggests that Autodesk Inc has been efficient in generating sales revenue relative to its total assets employed, albeit with a slightly fluctuating trend.
Overall, the increasing trend in the fixed asset turnover ratio coupled with the stable total asset turnover ratio may indicate that Autodesk Inc has effectively managed its long-term assets to generate sales, potentially leading to improved financial performance and profitability.