Balchem Corporation (BCPC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.72 | 5.21 | 5.26 | 5.61 | 5.66 | 5.42 | 5.23 | 5.32 | 5.53 | 4.64 | 4.32 | 5.41 | 6.10 | 6.48 | 6.54 | 6.33 | 6.79 | 6.04 | 5.57 | 5.33 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 6.11 | 4.35 | 4.51 | 4.64 | 5.57 | 3.97 | 4.23 | 4.32 | 4.81 | 4.08 | 3.76 | 4.29 | 4.48 | 3.92 | 3.99 | 3.71 | 4.08 | 3.42 | 3.43 | 3.32 |
Balchem Corporation's inventory turnover has shown fluctuations over the years, with an average ratio ranging between 4.32 and 6.79. A higher inventory turnover indicates that the company is efficiently managing its inventory levels and selling products quickly.
The receivables turnover and payables turnover ratios are not available for analysis, which may suggest that these metrics are not publicly disclosed or not applicable in the context of Balchem's operations.
The working capital turnover ratio has also varied over time, with the figures ranging from 3.32 to 6.11. This ratio measures how efficiently the company is using its working capital to generate sales. An increasing trend in this ratio could indicate improved efficiency in utilizing working capital to drive revenue.
Overall, the analysis of Balchem Corporation's activity ratios suggests that the company is effectively managing its inventory turnover and working capital, which are essential factors for operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 77.32 | 70.05 | 69.35 | 65.07 | 64.44 | 67.35 | 69.84 | 68.59 | 65.99 | 78.67 | 84.53 | 67.49 | 59.79 | 56.35 | 55.79 | 57.66 | 53.73 | 60.38 | 65.58 | 68.47 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data for Balchem Corporation, let's analyze the activity ratios.
1. Days of Inventory on Hand (DOH):
- The trend of DOH shows fluctuations over the quarters, with a general decrease from March 2020 to December 2023 but a slight increase in the recent period.
- A high DOH indicates an increased time taken to sell inventory, which may tie up capital and increase carrying costs.
- Balchem should aim to manage its inventory efficiently to avoid overstocking or stockouts, optimizing its working capital.
2. Days of Sales Outstanding (DSO):
- The DSO data are missing for all periods, indicating maybe the company does not extend credit sales.
- Nevertheless, DSO measures how long it takes for a company to collect cash from its sales, reflecting its efficiency in managing accounts receivable.
- Balchem should monitor DSO if credit sales exist, aiming to reduce collection times to improve its cash flow.
3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables are absent for all periods, suggesting potential management of obligations with suppliers.
- Payables days indicate how long it takes for a company to pay its suppliers, impacting relationships and potential discounts for early payments.
- Balchem should focus on optimizing payment terms with suppliers to maintain good rapport and utilize discounts, if available.
In conclusion, while we see inventory management showing some volatility and potentially room for improvement, the absence of data on DSO and payables days limits a comprehensive evaluation of the company's efficiency in managing receivables and payables. Balchem could benefit from tracking and optimizing these activity ratios to enhance its working capital management and overall financial performance.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 3.46 | 3.43 | 3.47 | 3.55 | 3.48 | 3.50 | 3.24 | 3.21 | 3.13 | 3.16 | 3.08 | 3.14 | 3.10 | 3.07 |
| Total asset turnover | 0.61 | 0.59 | 0.59 | 0.59 | 0.57 | 0.58 | 0.58 | 0.58 | 0.58 | 0.57 | 0.55 | 0.70 | 0.67 | 0.65 | 0.63 | 0.61 | 0.60 | 0.59 | 0.58 | 0.57 |
The Fixed Asset Turnover ratio measures how efficiently a company is generating revenue from its fixed assets. Balchem Corporation's Fixed Asset Turnover ratio has been gradually increasing from 3.07 in March 2020 to 3.46 in June 2023. This indicates that the company is effectively utilizing its fixed assets to generate sales.
On the other hand, the Total Asset Turnover ratio reflects the company's overall efficiency in generating sales from all its assets. Balchem Corporation's Total Asset Turnover ratio fluctuated over the period, reaching its peak of 0.70 in March 2022. However, there was a slight decline to 0.59 by June 2024.
Overall, the company has shown a strong performance in utilizing its fixed assets efficiently to generate sales, as evidenced by the consistent increase in the Fixed Asset Turnover ratio. However, there has been some variability in the Total Asset Turnover ratio, indicating fluctuations in the overall efficiency of generating sales from all assets.