Benchmark Electronics Inc (BHE)

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 3.76 3.62 3.54 3.45 3.62 3.38 3.50 3.56 3.92 4.07 4.60 5.27 5.74 5.32 5.24 5.91 6.61 7.02 7.28 7.48
Receivables turnover 6.32 6.05 6.09 6.38 5.87 5.78 5.75 6.25 6.33 6.84 7.23 7.37 6.63 6.65 6.84 6.84 6.97 6.92 6.88 6.31
Payables turnover 6.99 6.87 6.42 6.36 6.20 4.83 4.67 4.73 4.80 4.86 5.03 5.75 6.65 6.65 6.26 6.34 6.87 7.50 6.19 6.35
Working capital turnover 3.08 2.88 2.95 3.01 3.20 3.22 3.15 3.11 3.25 3.16 3.06 2.89 2.85 2.77 2.78 2.71 3.08 3.19 3.25 3.17

Inventory turnover measures how efficiently a company manages its inventory. Benchmark Electronics Inc. has maintained a relatively stable inventory turnover ratio throughout the quarters, averaging around 3.5 to 3.8 times per year. This indicates that the company is able to turn over its inventory approximately three to four times a year.

Receivables turnover reflects how quickly a company collects its accounts receivable. Benchmark Electronics Inc. has shown consistent improvement in its receivables turnover ratio from Q4 2022 to Q4 2023, suggesting more efficient collection of receivables. With a range of 5.75 to 6.38, the company collects its receivables approximately six times a year on average.

Payables turnover measures how quickly a company pays its suppliers. Benchmark Electronics Inc. saw fluctuations in its payables turnover ratio, but generally, the ratio has been increasing from Q3 2022 to Q4 2023. This implies that the company is taking more time to pay its suppliers, with an average annual turnover of approximately 6 times.

Working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales. Benchmark Electronics Inc. has maintained a relatively stable working capital turnover ratio around 3 from Q1 2022 to Q4 2023. This suggests that the company generates about $3 in sales for every $1 of working capital invested.

Overall, Benchmark Electronics Inc. has shown consistency in managing its activity ratios, with improvements in receivables turnover and a stable trend in inventory turnover and working capital turnover. The company's ability to efficiently manage inventory, collect receivables, and utilize working capital bodes well for its operational 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 97.19 100.82 103.01 105.85 100.96 108.03 104.14 102.59 93.19 89.58 79.35 69.32 63.62 68.56 69.67 61.72 55.20 52.01 50.15 48.82
Days of sales outstanding (DSO) days 57.78 60.33 59.96 57.25 62.21 63.17 63.44 58.44 57.65 53.38 50.52 49.50 55.07 54.90 53.37 53.40 52.39 52.73 53.05 57.86
Number of days of payables days 52.23 53.12 56.84 57.37 58.86 75.57 78.23 77.11 75.97 75.12 72.63 63.48 54.85 54.90 58.35 57.58 53.10 48.70 59.01 57.51

Benchmark Electronics Inc.'s activity ratios reflect the company's efficiency in managing its inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH): The trend in DOH shows a fluctuating pattern over the past eight quarters, with the figure ranging from a low of 97.19 days to a high of 108.03 days. A decreasing trend in DOH would indicate efficient management of inventory levels, whereas an increasing trend could signify potential issues with inventory control.

2. Days of Sales Outstanding (DSO): The DSO metric indicates the average number of days it takes for the company to collect its accounts receivable. Benchmark Electronics Inc. has shown fluctuations in DSO over the period, with a range between 57.25 days and 63.44 days. A lower DSO is favorable as it implies a faster cash conversion cycle and better working capital management.

3. Number of Days of Payables: The trend in the number of days of payables shows variability, ranging from 52.23 days to 78.23 days. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which could indicate a potential strain on vendor relationships or cash flow challenges.

Overall, Benchmark Electronics Inc. should aim to optimize its activity ratios by efficiently managing inventory levels, reducing DSO, and negotiating favorable payment terms with suppliers to improve overall liquidity and working capital efficiency.

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 12.47 12.51 13.27 13.32 13.65 13.56 12.94 12.52 12.08 11.35 11.14 11.15 11.08 10.70 10.45 10.82 11.02 12.13 12.35 12.57
Total asset turnover 1.25 1.24 1.28 1.29 1.30 1.22 1.19 1.19 1.18 1.16 1.15 1.16 1.18 1.18 1.18 1.20 1.29 1.37 1.37 1.37

The long-term activity ratios of Benchmark Electronics Inc., specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency of the company's utilization of its assets to generate sales.

The fixed asset turnover ratio, which measures how efficiently the company is using its fixed assets to generate revenue, shows a consistent trend of around 12 to 13 times per year over the past eight quarters. This indicates that Benchmark Electronics is effectively utilizing its fixed assets to support its sales activities.

On the other hand, the total asset turnover ratio, which reflects how efficiently the company is using all its assets to generate revenue, also displays a stable trend around 1.20 times per year. This suggests that Benchmark Electronics is efficiently managing its total assets to generate revenue.

Overall, the consistent high levels of both fixed asset turnover and total asset turnover ratios indicate that Benchmark Electronics Inc. is effectively utilizing its assets to drive sales and maintain operational efficiency over the analyzed periods.