ANI Pharmaceuticals Inc (ANIP)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 3.62 3.51 3.31 3.19 3.02 3.26 3.11 3.10 2.47 2.39 1.71 1.42 1.43 1.36 1.43 1.33 1.31 1.42 1.46 1.60
Receivables turnover 2.80 2.34 2.14 1.88 1.74 1.83 1.53 1.58 1.58 1.92 2.22 2.24 2.13 2.32 2.67 2.47 2.86 3.05 2.82 3.09
Payables turnover 10.99 10.97 12.13 10.13 10.85 16.47 10.40 11.67 8.79 12.81 8.93 6.20 7.74 5.97 5.30 5.63 4.32 5.98 6.74 6.37
Working capital turnover 1.21 1.15 1.10 1.38 1.18 1.13 1.02 0.94 0.87 1.93 2.01 2.06 2.22 2.16 2.52 2.57 1.64 18.47 101.54 —

ANI Pharmaceuticals Inc's activity ratios provide valuable insights into how effectively the company manages its inventory, receivables, payables, and working capital.

- Inventory turnover has been relatively stable over the quarters, indicating that the company is efficiently managing its inventory levels. However, the ratio could be improved to ensure that inventory is turning over at a faster rate.

- Receivables turnover has shown an increasing trend, indicating that ANI Pharmaceuticals is collecting its receivables more efficiently over time. This suggests improved credit management practices or better collection efforts.

- Payables turnover has fluctuated over the quarters, but the overall trend shows that the company is paying its suppliers at a reasonable pace. A higher payables turnover ratio typically indicates that the company is managing its trade credit effectively.

- Working capital turnover has also been fairly stable, reflecting the company's ability to generate sales relative to its working capital investment. A higher turnover ratio suggests that the company is effectively utilizing its working capital to generate revenue.

Overall, ANI Pharmaceuticals Inc's activity ratios suggest that the company is managing its operational resources effectively. There are opportunities to further optimize inventory turnover and capitalize on the improving trends in receivables turnover. Maintaining stable payables turnover and working capital turnover ratios indicates prudent financial management practices within the company.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 100.71 104.05 110.13 114.25 120.98 111.88 117.54 117.87 147.69 152.69 213.04 256.31 254.63 268.69 254.80 274.93 278.36 257.34 250.14 228.79
Days of sales outstanding (DSO) days 130.21 156.21 170.28 193.85 209.70 199.87 239.13 230.39 231.40 189.96 164.20 162.82 171.70 157.27 136.80 147.80 127.46 119.63 129.45 118.30
Number of days of payables days 33.22 33.26 30.09 36.03 33.65 22.16 35.11 31.27 41.52 28.50 40.88 58.89 47.16 61.10 68.88 64.88 84.42 61.04 54.17 57.26

Days of inventory on hand (DOH) measures how many days, on average, the company holds inventory before it is sold. A decreasing trend in DOH (from 277.08 days in Q4 2022 to 223.60 days in Q4 2023) is generally positive, indicating efficient inventory management and potentially faster inventory turnover.

Days of sales outstanding (DSO) shows the average number of days it takes for the company to collect payment after a sale is made. ANI Pharmaceuticals Inc experienced a significant decrease in DSO, going from 190.86 days in Q4 2022 to 121.52 days in Q4 2023. This implies better receivables management, quicker cash collection, and potentially more efficient operations.

Number of days of payables measures the average number of days it takes the company to pay its suppliers. ANI Pharmaceuticals Inc saw fluctuations in this ratio, with a peak of 83.89 days in Q1 2023 and a low of 50.84 days in Q3 2022. A longer payment period can indicate better cash flow management, but it may also strain relationships with suppliers if extended too far.

Overall, the trend in activity ratios for ANI Pharmaceuticals Inc suggests an improvement in managing inventory, collecting receivables, and paying suppliers efficiently, which can positively impact the company's working capital and overall financial health.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 10.19 9.46 8.35 7.60 6.66 5.99 5.25 3.96 3.85 5.19 5.11 5.05 4.93 4.81 4.89 5.04 5.09 5.43 5.52 5.41
Total asset turnover 0.50 0.47 0.43 0.43 0.38 0.35 0.31 0.28 0.26 0.44 0.43 0.44 0.44 0.42 0.42 0.42 0.45 0.47 0.48 0.48

Long-term activity ratios provide insights into how efficiently a company utilizes its assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures how effectively a company generates sales from its fixed assets. ANI Pharmaceuticals Inc's fixed asset turnover has shown a consistent increasing trend over the past eight quarters, indicating improved efficiency in utilizing its fixed assets. The ratio has increased from 4.29 in Q1 2022 to 10.92 in Q4 2023. This suggests that the company is generating $10.92 in sales for every $1 invested in fixed assets in Q4 2023. The steady growth in fixed asset turnover reflects ANI Pharmaceuticals Inc's ability to maximize the productivity of its long-term investments in property, plant, and equipment.

2. Total Asset Turnover: Total asset turnover reveals how well a company generates revenue relative to its total assets. ANI Pharmaceuticals Inc's total asset turnover has also exhibited a positive trend over the analyzed quarters. The ratio has increased from 0.30 in Q1 2022 to 0.54 in Q4 2023, highlighting the company's efficiency in utilizing its total assets to generate revenue. This indicates that the company generated $0.54 in sales for every $1 of assets held in Q4 2023. The rising total asset turnover signifies ANI Pharmaceuticals Inc's ability to efficiently utilize its overall asset base to drive sales growth and profitability.

Overall, the long-term activity ratios of ANI Pharmaceuticals Inc demonstrate improved operational efficiency and effective utilization of assets to drive revenue growth. An upward trend in both fixed asset turnover and total asset turnover suggests that the company is effectively managing its long-term assets to enhance operational performance and boost financial outcomes.