Azenta Inc (AZTA)

Short-term

Turnover ratios

Azenta Inc's activity ratios provide insights into how efficiently the company is managing its resources.

1. Inventory Turnover:
- Azenta Inc's inventory turnover has been fluctuating over the past five years, with a significant decrease from 22.23 in 2020 to 7.97 in 2024. This indicates that the company is selling its inventory at a slower rate compared to previous years.

2. Receivables Turnover:
- The receivables turnover ratio has also shown variation, with a peak of 16.39 in 2022 followed by a decline to 3.76 in 2024. This suggests that Azenta Inc took longer to collect its accounts receivable in 2024 compared to previous years.

3. Payables Turnover:
- Azenta Inc's payables turnover has been relatively stable over the period, with a decrease from 32.12 in 2020 to 20.68 in 2024. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently.

4. Working Capital Turnover:
- The working capital turnover ratio has shown some inconsistency, peaking at 2.03 in 2020 and declining to 1.04 in 2024. This ratio measures how effectively the company is using its net working capital to generate sales, and a higher ratio is generally preferable.

In summary, Azenta Inc should closely monitor its inventory management, accounts receivable collection, and working capital efficiency to ensure optimal utilization of its resources and improve overall operational performance. Additionally, consistent payables turnover suggests the company is managing its payable obligations effectively.

---

Average number of days

Azenta Inc's activity ratios provide insights into the efficiency of the company's management of inventory, receivables, and payables over the past five years.

1. Days of Inventory on Hand (DOH):
- The company's DOH has fluctuated over the years, ranging from a low of 16.42 days in 2020 to a high of 57.88 days in 2023.
- A lower DOH indicates that Azenta Inc is efficiently managing its inventory levels, while a higher DOH suggests potential issues with inventory turnover and liquidity.

2. Days of Sales Outstanding (DSO):
- The DSO for Azenta Inc has also varied significantly, with the lowest being 22.28 days in 2022 and the highest at 96.97 days in 2024.
- A lower DSO implies that the company is collecting its receivables quickly, whereas a higher DSO may indicate delays in receiving payments from customers.

3. Number of Days of Payables:
- Azenta Inc's days of payables have seen fluctuations, with the number of days ranging from 11.36 in 2020 to 25.72 in 2021.
- A longer number of days of payables suggests that the company is taking longer to pay its suppliers, which could indicate opportunities for better management of working capital.

Overall, the analysis of Azenta Inc's activity ratios suggests that the company has experienced varying levels of efficiency in managing its inventory, receivables, and payables over the past five years. Monitoring and improving these ratios can help the company enhance its overall operational performance and financial health.

---

Long-term

The fixed asset turnover ratio measures how efficiently a company generates sales revenue from its investment in fixed assets. Azenta Inc's fixed asset turnover has shown some fluctuations over the past five years, ranging from 3.24 to 17.39. The significant increase in 2022 to 17.39 suggests that Azenta Inc was able to generate $17.39 in sales for every $1 invested in fixed assets during that year. However, this increase was not sustained, as the ratio decreased in the following years.

On the other hand, the total asset turnover ratio indicates how well a company utilizes all its assets to generate sales. Azenta Inc's total asset turnover has also varied, with the lowest being 0.23 in 2023 and the highest being 0.72 in 2022. This suggests that Azenta Inc generated $0.72 in sales for every $1 of assets in 2022, indicating a higher efficiency in asset utilization compared to other years.

Overall, the long-term activity ratios for Azenta Inc show a fluctuating trend in the efficiency of utilizing both fixed and total assets to generate sales revenue. It is important for the company to analyze the reasons behind these fluctuations and identify ways to improve asset utilization efficiency to drive future growth and profitability.