ANI Pharmaceuticals Inc (ANIP)

Short-term

Turnover ratios

Based on the provided data for ANI Pharmaceuticals Inc, the activity ratios for the years ending on December 31 from 2019 to 2023 are analyzed as follows:

1. Inventory turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times inventory is sold and replaced within a specific period.
- ANI Pharmaceuticals Inc's inventory turnover has been fluctuating over the years, ranging from 1.23 to 1.63. The improvement in 2023 suggests a better management of inventory compared to previous years.

2. Receivables turnover:
- The receivables turnover ratio reflects how well a company collects its outstanding accounts receivable during a given period.
- ANI Pharmaceuticals Inc has shown variations in its receivables turnover, with values ranging from 1.68 to 3.00. The significant increase in 2023 indicates an improvement in the collection of accounts receivable.

3. Payables turnover:
- The payables turnover ratio measures how efficiently a company pays its suppliers by showing how many times payables are paid within a period.
- ANI Pharmaceuticals Inc's payables turnover has also fluctuated over the years, with values ranging from 4.32 to 7.74. The decrease in the ratio in 2023 compared to 2022 suggests a longer payment period to suppliers.

4. Working capital turnover:
- The working capital turnover ratio evaluates how effectively a company utilizes its working capital to generate sales.
- ANI Pharmaceuticals Inc's working capital turnover has shown variability, with values ranging from 0.92 to 2.27. The decline in the ratio in 2023 compared to the previous years indicates less efficiency in utilizing working capital to generate revenue.

Overall, the analysis of ANI Pharmaceuticals Inc's activity ratios reveals fluctuations in its efficiency in managing inventory, collecting receivables, paying payables, and utilizing working capital to generate sales over the years from 2019 to 2023. It is important for the company to focus on improving these ratios to enhance its operational efficiency and financial performance.

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Average number of days

Activity ratios such as days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables provide insights into how efficiently ANI Pharmaceuticals Inc manages its operations and working capital.

- Days of Inventory on Hand (DOH): ANI Pharmaceuticals Inc has shown a fluctuating trend in managing its inventory over the past five years. The decrease in DOH from 2022 to 2023 indicates that the company is efficiently managing its inventory levels, holding inventory for a shorter period before selling it. However, the overall DOH remains relatively high, suggesting potential room for improvement in inventory management practices.

- Days of Sales Outstanding (DSO): The trend in DSO for ANI Pharmaceuticals Inc fluctuates over the period under review. The decrease in DSO from 2022 to 2023 reflects the company's ability to collect payments more efficiently from customers. However, the DSO values remain relatively high, indicating that the company may have challenges in collecting payments promptly.

- Number of Days of Payables: ANI Pharmaceuticals Inc has shown variability in its payables management over the past five years. The increase in the number of days of payables from 2022 to 2023 implies that the company is taking longer to pay its suppliers. This may indicate either a deliberate strategy to improve cash flow or potential issues in managing supplier relationships.

Overall, ANI Pharmaceuticals Inc could benefit from further optimizing its inventory levels, enhancing its accounts receivable collection process, and evaluating its payables strategy to ensure efficient working capital management and overall operational performance.

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Long-term

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. ANI Pharmaceuticals Inc's fixed asset turnover has shown an improving trend over the years, increasing from 5.09 in 2019 to 10.92 in 2023. This indicates that the company has been able to generate more revenue per dollar invested in fixed assets.

On the other hand, the total asset turnover ratio reflects how well a company utilizes all its assets to generate sales. ANI Pharmaceuticals Inc's total asset turnover has also shown an upward trajectory, rising from 0.45 in 2019 to 0.54 in 2023. This suggests that the company has become more efficient in generating sales relative to its total asset base.

Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios indicate that ANI Pharmaceuticals Inc has been effectively optimizing its asset utilization to drive revenue growth and improve operational efficiency over the years.