Balchem Corporation (BCPC)

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 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 5.15 5.86 6.35 6.55
Receivables turnover 7.36 7.18 7.52 7.20 7.16 6.55 6.33 6.15 6.81 6.92 6.54 6.69 7.16 6.98 6.93 6.24 6.89 6.82 6.27 6.40
Payables turnover 11.18 12.69 11.59 12.43 11.55 8.85 9.16 12.52 9.88 13.99 11.44 14.44 20.21 20.06 20.06 18.77 11.60 11.77 14.77 16.61
Working capital turnover 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 3.96 3.82 3.75 4.05

Balchem Corp.'s activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory turnover: Balchem Corp. has maintained a relatively consistent inventory turnover ratio around 5. This indicates that the company is able to sell and replace its inventory approximately 5 times a year, showing efficient management of inventory levels.

2. Receivables turnover: Balchem Corp. has shown consistent improvement in its receivables turnover ratio over the quarters, reaching a high of 7.52 in Q2 2023. This suggests that the company is collecting its accounts receivable more effectively, which is positive for cash flow and working capital management.

3. Payables turnover: The payables turnover ratio for Balchem Corp. has fluctuated over the quarters but has generally been above 10. This indicates that the company is paying its suppliers relatively quickly, which can be both positive and negative depending on the specific payment terms and relationships with suppliers.

4. Working capital turnover: Balchem Corp.'s working capital turnover ratio has also fluctuated but generally remained above 4. This ratio shows how efficiently the company is utilizing its working capital to generate sales. The higher the ratio, the more efficient the company is in using its resources to generate revenue.

Overall, Balchem Corp.'s activity ratios demonstrate a generally efficient management of its assets and liabilities to support its sales activities. However, the company should continue to monitor these ratios to ensure optimal efficiency and effectiveness in its operations.

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 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 70.83 62.33 57.44 55.71
Days of sales outstanding (DSO) days 49.57 50.84 48.55 50.69 50.96 55.69 57.70 59.36 53.63 52.71 55.83 54.53 50.95 52.26 52.67 58.45 52.99 53.55 58.20 57.00
Number of days of payables days 32.65 28.77 31.48 29.37 31.61 41.25 39.83 29.15 36.93 26.10 31.91 25.28 18.06 18.19 18.20 19.45 31.46 31.01 24.71 21.98

Balchem Corp.'s activity ratios provide insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): Balchem's DOH has fluctuated over the quarters, ranging from 64.44 days to 84.53 days. A lower DOH indicates that the company is selling inventory more quickly, which can be positive as it reduces carrying costs and the risk of obsolescence. However, a significant decrease in DOH may also indicate potential stockouts or production issues.

2. Days of Sales Outstanding (DSO): The DSO measures how quickly the company collects its accounts receivable. Balchem's DSO has varied from 48.55 days to 59.36 days. A lower DSO suggests efficient credit and collection policies, while a high DSO may signal issues with customer creditworthiness or collection procedures.

3. Number of Days of Payables: Balchem's number of days of payables reflects how long the company takes to pay its suppliers. The range has been from 28.77 days to 41.25 days. A longer payable period can indicate favorable payment terms negotiated with suppliers, providing the company with additional working capital. However, it could also strain supplier relationships if extended excessively.

In summary, analyzing these activity ratios over time can help assess Balchem Corp.'s inventory management, accounts receivable collection efficiency, and payment practices, ultimately impacting its overall working capital management and liquidity position.

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 3.34 3.45 3.46 3.43 3.47 3.55 3.48 3.50 3.36 3.34 3.26 3.16 3.08 3.14 3.10 3.07 2.97 3.19 3.12 3.40
Total asset turnover 0.58 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 0.56 0.58 0.58 0.66

Balchem Corp.'s long-term activity ratios provide insight into the efficiency of its asset utilization. The fixed asset turnover ratio shows how well the company generates sales from its investment in fixed assets. The ratio has remained relatively stable over the past eight quarters, ranging from 3.34 to 3.55. This indicates that Balchem is consistently generating sales from its fixed assets.

On the other hand, the total asset turnover ratio measures the company's ability to generate sales from all assets, including fixed and current assets. Balchem's total asset turnover ratio has been more consistent, staying around 0.58 for the last six quarters before slightly fluctuating in the last two quarters. This suggests that the company has been effectively utilizing its total assets to generate revenue.

Overall, the stable fixed asset turnover and consistent total asset turnover ratios indicate that Balchem Corp. has been efficiently utilizing its assets to generate sales over the observed periods. Further analysis and comparison with industry benchmarks could provide deeper insights into the company's asset management efficiency.