Azenta Inc (AZTA)

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	6.02	6.16	5.26	4.64	4.58	6.97	3.70	5.26	7.08	9.41	5.93	6.70	6.53	21.35	6.53	7.00	6.98	7.09	7.03	6.42
Receivables turnover	4.14	4.28	3.88	3.56	2.95	3.39	3.65	5.30	6.88	8.15	4.05	3.79	4.05	4.00	6.80	6.86	7.16	6.97	3.45	3.45
Payables turnover	19.03	22.07	19.67	15.44	12.09	15.42	8.69	11.39	10.60	13.42	9.34	11.03	11.93	30.85	10.92	11.79	11.24	11.96	15.41	12.24
Working capital turnover	0.56	0.55	0.48	0.44	0.43	0.25	0.23	0.30	1.91	2.26	2.34	1.86	1.77	1.72	3.15	3.27	3.11	3.08	1.60	1.70

Azenta Inc's inventory turnover ratio has shown some fluctuation over the past quarters, ranging from 2.27 to 3.51. This could indicate varying efficiencies in managing its inventory levels and turning them into sales. It is important for the company to monitor and optimize its inventory management to ensure that it is neither overstocked nor understocked.

The receivables turnover ratio has also demonstrated some variability, with values ranging from 2.94 to 4.25. This suggests differences in the company's collection efficiency of accounts receivable. Azenta Inc should focus on timely collections to improve its cash flow and reduce the risk of bad debts.

The payables turnover ratio has shown a similar pattern of fluctuation, ranging from 6.00 to 11.23. This indicates varying speeds at which the company is paying its suppliers. Azenta Inc should ensure timely payment of its payables to maintain good relationships with its suppliers while optimizing its cash flow.

The working capital turnover ratio has also displayed fluctuations, varying from 0.25 to 0.56. This ratio reflects how efficiently the company is using its working capital to generate sales. Azenta Inc should aim to improve this ratio over time by managing its working capital more effectively to support its operations and growth.

Overall, Azenta Inc should pay close attention to its activity ratios and strive for consistency and improvement in managing its inventory, receivables, payables, and working capital to enhance its operational efficiency and financial performance.

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	60.63	59.23	69.41	78.64	79.70	52.39	98.64	69.45	51.54	38.77	61.60	54.48	55.92	17.10	55.93	52.15	52.31	51.51	51.95	56.82
Days of sales outstanding (DSO)	days	88.13	85.28	94.00	102.42	123.89	107.80	99.87	68.81	53.04	44.77	90.06	96.30	90.23	91.26	53.65	53.22	50.98	52.36	105.84	105.83
Number of days of payables	days	19.18	16.54	18.56	23.64	30.18	23.67	41.99	32.04	34.44	27.19	39.09	33.09	30.60	11.83	33.43	30.97	32.48	30.52	23.69	29.81

The activity ratios of Azenta Inc provide insight into the efficiency of the company's operations in managing inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The trend of DOH shows fluctuations in the holding period of inventory.
- A decreasing trend from Q1 2023 to Q4 2023 indicates better inventory management.
- However, a sharp increase in Q1 2024 suggests potential issues with inventory control.
- Q2 2022 had an unusually high DOH, which may have been an outlier or reflective of operational challenges.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes to collect receivables from customers.
- A general decreasing trend from Q1 2023 to Q4 2023 indicates faster collection of receivables.
- Q1 2024 shows a slight increase, which might need monitoring for any potential credit or collection issues.
- Q3 2022 and Q1 2023 had significantly high DSO, suggesting slower collections during those periods.

3. Number of Days of Payables:
- This ratio shows how long it takes the company to pay its suppliers.
- A decreasing trend from Q1 2023 to Q4 2023 indicates a more aggressive approach to managing payables.
- Q2 2022 stands out with an exceptionally high number of days of payables, possibly due to specific circumstances or strategic decisions.
- Q4 2022 saw a notable decrease in days of payables, indicating a shift towards quicker payments to suppliers.

Overall, monitoring these activity ratios is crucial to understanding Azenta Inc's effectiveness in managing its working capital and optimizing cash flows. Further analysis and comparison with industry benchmarks can provide additional insights into the company's operational efficiency and 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	3.07	3.29	3.03	2.80	2.75	3.59	3.55	4.85	5.89	7.49	6.49	6.47	6.30	8.61	11.35	11.29	11.23	11.47	5.72	5.76
Total asset turnover	0.23	0.23	0.21	0.18	0.18	0.15	0.15	0.18	0.47	0.54	0.54	0.51	0.49	0.48	0.83	0.83	0.76	0.76	0.38	0.38

The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets, such as property, plant, and equipment. Azenta Inc's fixed asset turnover ratio fluctuated over the past eight quarters, ranging from 0.52 to 3.60. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects how well a company uses all its assets to generate revenue. Azenta Inc's total asset turnover ratio also varied over the same period, from 0.02 to 0.23. A higher total asset turnover ratio suggests that the company is maximizing the use of all its assets to generate sales.

Overall, Azenta Inc's fixed asset turnover ratio generally showed a positive trend, indicating improved efficiency in utilizing its fixed assets to generate revenue. On the other hand, the total asset turnover ratio remained relatively low but stable, suggesting that the company may have opportunities to improve the utilization of its total assets to drive revenue generation.