Azenta Inc (AZTA)

Short-term

Turnover ratios

The activity ratios of Azenta Inc indicate the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

Starting with the inventory turnover, we observe a declining trend from 4.67 in 2019 to 3.14 in 2023, indicating a decrease in the company's efficiency in selling and replenishing its inventory over the years.

The receivables turnover has shown some variability, reaching its peak at 4.77 in 2020 and dropping to 3.39 in 2022 before rising to 4.25 in 2023. This suggests that the company may have encountered challenges in collecting its receivables in 2022 but has since improved its collection efficiency.

On the other hand, the payables turnover has shown a consistent increase over the years, indicating that the company has been able to settle its payables more efficiently, with a notable increase in 2023 to 11.23.

Lastly, the working capital turnover has displayed a fluctuating pattern, with a significant decline from 2.08 in 2019 to 0.55 in 2023. This suggests a reduced efficiency in generating sales revenue relative to the working capital employed.

Overall, the trends in these activity ratios provide insights into Azenta Inc's operational efficiency and can guide further analysis of the company's financial performance.

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Average number of days

The activity ratios of Azenta Inc provide insights into the efficiency of the company's operations and management of its working capital.

The days of inventory on hand (DOH) indicate the average number of days it takes for the company to sell its inventory. Azenta Inc's DOH has increased from 78.13 days in 2019 to 116.42 days in 2023. This suggests that the company is taking longer to sell its inventory, which may indicate overstocking or declining sales.

The days of sales outstanding (DSO) measures the average number of days it takes for the company to collect its accounts receivable. Azenta Inc's DSO has fluctuated over the years, with a significant increase in 2022. This indicates that the company's collection process may have become less efficient, leading to a longer collection period.

The number of days of payables measures the average number of days it takes for the company to pay its suppliers. Azenta Inc's number of days of payables has decreased from 46.29 days in 2019 to 32.51 days in 2023. This suggests that the company is taking fewer days to pay its suppliers, which may indicate improved liquidity or bargaining power with suppliers.

Overall, Azenta Inc's activity ratios indicate a potential inefficiency in inventory management and collection process, although the company has improved its ability to pay suppliers promptly.

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Long-term

The fixed asset turnover ratio measures the efficiency of a company in utilizing its fixed assets to generate sales. Azenta Inc's fixed asset turnover has been declining over the past five years, from 7.76 in 2019 to 3.23 in 2023. This indicates that the company is generating fewer sales relative to its investment in fixed assets.

On the other hand, the total asset turnover ratio measures the efficiency of a company in using its total assets to generate sales. Azenta Inc's total asset turnover has also fluctuated over the years, reaching its lowest point of 0.15 in 2022 and then improving to 0.23 in 2023. This suggests that the company's ability to generate sales from its total assets has been volatile.

In conclusion, both the fixed asset turnover and total asset turnover ratios indicate that Azenta Inc should focus on improving its efficiency in utilizing assets to generate sales, particularly in the case of fixed assets where the decline has been more pronounced.