Artivion Inc (AORT)

Short-term

Turnover ratios

Artivion Inc's Inventory turnover ratio has fluctuated over the period under review, ranging from a low of 1.17 at the end of December 31, 2020, to a high of 1.85 at the end of December 31, 2024. The increasing trend in the Inventory turnover ratio indicates that the company has been able to sell its inventory more efficiently, turning over its stock quicker in recent periods.

The Receivables turnover ratio, unfortunately, was not available for analysis as the data was not provided. However, typically a higher Receivables turnover ratio indicates that the company is collecting its accounts receivable more quickly, which is a positive sign of efficient operations.

Similarly, the Payables turnover ratio data was not provided for analysis. A high Payables turnover ratio usually suggests that the company is paying its suppliers more quickly, which could indicate strong cash flow management.

Looking at the Working Capital turnover ratio, we can see a general increasing trend starting from 1.08 at the end of June 30, 2020, and peaking at 2.85 at the end of September 30, 2024. This indicates that Artivion Inc has been generating more revenue relative to its working capital in recent periods, which is a positive sign of efficiency in its operations.

In conclusion, based on the available activity ratios data, Artivion Inc seems to have improved its inventory management and working capital efficiency over the period, which could be indicative of effective operational strategies.

---

Average number of days

Based on the provided data for Artivion Inc's activity ratios:

1. Days of Inventory on Hand (DOH):

- Artivion Inc's DOH has shown a fluctuating trend over the years, ranging from as high as 312.01 days at the end of December 2020 to as low as 197.28 days at the end of December 2024.
- A decreasing trend in DOH indicates an improvement in inventory management efficiency, as the company is selling off its inventory faster.
- The company seems to have made significant progress in managing its inventory as evidenced by the decreasing trend in DOH from the highs of 312.01 days in December 2020 to the lows of 197.28 days in December 2024.

2. Days of Sales Outstanding (DSO):

- The data for DSO is not provided, indicating that this metric is not available for analysis. DSO is an essential ratio for understanding how long it takes for a company to collect its accounts receivable, and the absence of this data limits our ability to assess the efficiency of Artivion Inc's receivables management.

3. Number of Days of Payables:

- Similar to DSO, the data for the number of days of payables is not provided, which hinders our ability to evaluate Artivion Inc's payment practices and how long the company takes to settle its payables.

In conclusion, while the analysis of Artivion Inc's DOH points towards improvements in inventory management efficiency, the absence of DSO and payable days data limits a comprehensive assessment of the company's overall activity ratios and effectiveness in managing working capital.

---

Long-term

Artivion Inc's Fixed Asset Turnover ratio has shown fluctuations over the years, indicating changes in the efficiency of the company in generating revenue from its fixed assets. The ratio increased from 4.90 in December 31, 2020, to a peak of 8.14 in March 31, 2022, suggesting improved utilization of fixed assets during that period. However, the ratio declined thereafter but remained relatively stable around 4, indicating continued efficiency in utilizing fixed assets for revenue generation.

On the other hand, the Total Asset Turnover ratio, which measures the efficiency of the company in generating revenue from all its assets, shows a general increasing trend over the years. The ratio improved from 0.44 in March 31, 2020, to 0.49 in December 31, 2024, suggesting an overall improvement in the company's ability to generate sales in relation to its total assets.

In summary, while the Fixed Asset Turnover ratio fluctuated but generally remained stable around 4, the Total Asset Turnover ratio demonstrated a consistent improvement over the years. This indicates that Artivion Inc has been effectively utilizing both its fixed and total assets to generate revenue, contributing to the company's overall operational efficiency and performance.