Artivion Inc (AORT)

Short-term

Turnover ratios

Artivion Inc's activity ratios provide insights into how efficiently the company manages its key assets and liabilities.

1. Inventory Turnover:
The inventory turnover ratio measures how effectively a company manages its inventory levels. Artivion Inc's inventory turnover has shown a fluctuating trend over the past five years, with a slight increase in 2023 compared to 2022. The company turned over its inventory 1.52 times in 2023, indicating a moderate efficiency in managing and selling its inventory.

2. Receivables Turnover:
The receivables turnover ratio reflects how efficiently a company collects payments from its customers. Artivion Inc's receivables turnover has been relatively stable over the past five years, with a peak in 2021 at 5.14 times. The company collected payments from its customers approximately 4.77 times in 2023, which suggests effective credit management practices.

3. Payables Turnover:
The payables turnover ratio evaluates how quickly a company pays its suppliers. Artivion Inc's payables turnover has been consistent over the years, with a slight decrease in 2023 compared to 2022. The company paid its suppliers approximately 9.37 times in 2023, indicating a relatively efficient payment process.

4. Working Capital Turnover:
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. Artivion Inc's working capital turnover has been declining over the years, indicating a lower efficiency in converting working capital into sales. In 2023, the company generated sales 1.59 times for every dollar of working capital invested.

Overall, Artivion Inc has demonstrated moderate efficiency in managing its inventory, collecting payments from customers, and paying suppliers. However, there may be room for improvement in leveraging working capital to generate revenue effectively.

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Average number of days

Artivion Inc's activity ratios provide valuable insights into the efficiency of the company's operations over the years.

1. Days of Inventory on Hand (DOH): Artivion's DOH has shown a fluctuating trend over the past five years, ranging from 207.82 days in 2019 to 312.01 days in 2020, before declining to 239.70 days in 2023. A higher DOH indicates that the company is holding inventory for a longer period, which may tie up capital and increase carrying costs. The recent decrease in DOH suggests that Artivion has made improvements in managing its inventory levels more efficiently.

2. Days of Sales Outstanding (DSO): The DSO measures the average number of days it takes for Artivion to collect accounts receivable from its customers. The trend in DSO has been somewhat stable, with fluctuations seen over the years. The DSO decreased from 73.81 days in 2019 to 70.27 days in 2020, before slightly increasing to 76.44 days in 2023. A lower DSO indicates that the company is collecting receivables more quickly, which is generally seen as a positive sign.

3. Number of Days of Payables: Artivion's number of days of payables has also remained relatively stable over the years, fluctuating between 37.45 days in 2021 and 41.11 days in 2020. The recent figure of 38.94 days in 2023 suggests that the company takes approximately 39 days to pay its suppliers. Managing payables effectively can help improve cash flow and liquidity.

Overall, the analysis of Artivion Inc's activity ratios indicates that the company has made efforts to enhance its inventory management and maintain stable collections and payment practices. Monitoring these ratios can provide valuable insights into the company's operational efficiency and working capital management.

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Long-term

For Artivion Inc, the fixed asset turnover has shown an increasing trend over the past five years, from 8.59 in 2019 to 9.23 in 2023. This indicates that the company has been able to generate more revenue from its fixed assets over time. A high fixed asset turnover ratio suggests efficient utilization of fixed assets to generate sales.

In contrast, the total asset turnover ratio has also been increasing but at a slower pace compared to the fixed asset turnover. It rose from 0.32 in 2019 to 0.45 in 2023. This indicates that the company is generating more sales relative to its total assets. However, the ratio is relatively low, suggesting that Artivion Inc may have a large asset base compared to its sales revenue.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that Artivion Inc has been improving its efficiency in generating sales from both its fixed and total assets. However, the company may need to further investigate its total asset turnover to ensure optimal utilization of its assets to drive revenue growth.