Benchmark Electronics Inc (BHE)

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 4.31 4.15 4.13 3.99 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
Receivables turnover 6.44 7.23 7.31 6.76 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
Payables turnover 6.74 6.79 7.16 7.31 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
Working capital turnover 3.11 3.09 3.17 3.10 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

Based on the provided data on Benchmark Electronics Inc activity ratios, we can analyze the company's efficiency in managing its inventory, receivables, payables, and working capital turnover.

1. Inventory Turnover:
- The inventory turnover ratio demonstrates how efficiently Benchmark Electronics Inc is managing its inventory. Over the periods, the inventory turnover ratio declined from 5.91 to 4.31, indicating a decrease in the rate at which inventory is being sold. This trend may suggest potential issues with inventory management or slowing sales.

2. Receivables Turnover:
- The receivables turnover ratio reflects how effectively the company collects payments from its customers. Benchmark Electronics Inc's receivables turnover ratio fluctuated within a range, with a peak at 7.37 in March 31, 2021, and a low of 5.75 in June 30, 2022. Generally, a higher ratio signifies more efficient collection of receivables, while a lower ratio may indicate potential issues with credit policies or customer payment delays.

3. Payables Turnover:
- The payables turnover ratio illustrates the efficiency of Benchmark Electronics Inc in paying its suppliers and managing its accounts payable. The payables turnover ratio declined initially before increasing towards the latter periods, suggesting changes in payment terms or supplier relationships. The company's ability to manage payables effectively can impact cash flow and liquidity.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently Benchmark Electronics Inc utilizes its working capital to generate sales. The ratio fluctuated over the periods, with a peak at 3.25 in December 31, 2021, and a low of 2.71 in March 31, 2020. A higher ratio indicates better utilization of working capital, while a lower ratio may suggest inefficient use of resources.

In conclusion, analyzing these activity ratios provides insights into Benchmark Electronics Inc's operational efficiency and effectiveness in managing key aspects of its working capital cycle. Monitoring these ratios over time can help identify trends and areas for improvement in the company's operations.

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 84.69 87.86 88.39 91.44 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
Days of sales outstanding (DSO) days 56.68 50.50 49.94 54.03 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
Number of days of payables days 54.18 53.76 51.01 49.96 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

Benchmark Electronics Inc's days of inventory on hand has shown a fluctuating trend over the past five years, ranging from a low of 61.72 days to a high of 108.03 days. The company's management of inventory levels has been somewhat inconsistent during this period, with a significant increase observed in the most recent quarters.

In terms of days of sales outstanding (DSO), Benchmark Electronics Inc has generally maintained a relatively stable performance over the years, with DSO ranging from 49.50 days to 63.44 days. The company has been effective in collecting its accounts receivable in a timely manner, notwithstanding a slight increase in DSO in the latter part of the period.

Regarding the number of days of payables, Benchmark Electronics Inc has shown variability in its payment cycle, with fluctuations observed from 49.96 days to 78.23 days. The company's management of payables has undergone significant changes, with the number of days of payables decreasing after peaking in the middle of the period.

Overall, Benchmark Electronics Inc should focus on optimizing its inventory management to prevent excessive inventory buildup and maintain a consistent payment cycle to enhance its cash flow efficiency and working capital management.

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 11.80 12.00 12.19 12.59 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
Total asset turnover 1.24 1.25 1.28 1.27 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

Benchmark Electronics Inc's long-term activity ratios have shown steady improvement over the years.

The Fixed Asset Turnover ratio has been increasing consistently, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests improved efficiency in utilizing its long-term assets to generate sales. The ratio has increased from 10.82 in March 2020 to 11.80 in December 2024, peaking at 13.65 in December 2022.

Similarly, the Total Asset Turnover ratio, which measures how efficiently the company is using all its assets to generate revenue, has also shown a positive trend. The ratio has been gradually increasing from 1.18 in March 2020 to 1.24 in December 2024. This indicates that Benchmark Electronics Inc is becoming more efficient in generating sales with its total asset base over time.

Overall, the improving trend in both Fixed Asset Turnover and Total Asset Turnover ratios reflects the company's ability to effectively utilize its assets to drive revenue growth and operational efficiency in the long term.