Bio-Rad Laboratories Inc (BIO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.56 | 1.59 | 1.72 | 2.24 | 1.78 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 3.47 | 1.06 | 1.08 | 2.23 | 1.69 |
Bio-Rad Laboratories Inc's activity ratios provide insights into how efficiently the company is managing its resources.
1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory within a specific period. Bio-Rad Laboratories Inc's inventory turnover has shown fluctuation over the years, decreasing from 2.24 in 2021 to 1.56 in 2024. A higher turnover ratio indicates efficient inventory management, implying that the company is selling products quickly.
2. Receivables Turnover: The receivables turnover ratio reflects the effectiveness of the company in collecting outstanding payments from customers. The absence of data for receivables turnover suggests that the company may not disclose this information or has a negligible accounts receivable balance compared to its sales.
3. Payables Turnover: The payables turnover ratio evaluates how quickly a company pays its suppliers. The lack of information on payables turnover may suggest that Bio-Rad Laboratories Inc either does not provide this data or that its payment terms with suppliers are not significant enough to impact the ratio.
4. Working Capital Turnover: This ratio assesses how effectively a company utilizes its working capital to generate revenue. Bio-Rad Laboratories Inc's working capital turnover has varied significantly over the years, with a notable increase in 2024 to 3.47. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales.
In conclusion, while Bio-Rad Laboratories Inc has demonstrated fluctuations in its activity ratios, particularly in inventory turnover and working capital turnover, further analysis and comparison with industry standards would be necessary to provide a more comprehensive assessment of the company's operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 233.58 | 228.95 | 212.61 | 162.94 | 205.02 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, I will analyze the activity ratios for Bio-Rad Laboratories Inc:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand decreased from 205.02 days as of December 31, 2020 to 162.94 days as of December 31, 2021, indicating a more efficient management of inventory.
- However, there was a significant increase to 212.61 days as of December 31, 2022, followed by a further increase to 228.95 days as of December 31, 2023, and 233.58 days as of December 31, 2024. These increases suggest challenges in managing inventory efficiently, potentially leading to higher carrying costs and lower liquidity.
2. Days of Sales Outstanding (DSO):
- The data provided shows "— days" for all years, suggesting that specific information on the days of sales outstanding is not available. This may indicate that the company's accounts receivable turnover or collection period is not provided in the data set.
3. Number of Days of Payables:
- Similarly, the data indicates "— days" for the number of days of payables for all years, suggesting that specific information on the company's payables turnover or payment period is not available in the data set. This makes it challenging to assess the efficiency of the company's payables management.
In conclusion, based on the available data, Bio-Rad Laboratories Inc has shown fluctuations in its days of inventory on hand, implying potential challenges in managing inventory efficiently. However, further details on days of sales outstanding and number of days of payables are needed to provide a more comprehensive analysis of the company's overall activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 5.62 | 4.20 | 5.18 |
| Total asset turnover | 0.27 | 0.22 | 0.21 | 0.16 | 0.20 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. From the data provided, we can see that Bio-Rad Laboratories Inc's fixed asset turnover has fluctuated over the years. In 2020, the ratio was 5.18, indicating that for every dollar invested in fixed assets, the company generated $5.18 in sales. However, this ratio decreased to 4.20 in 2021 before increasing significantly to 5.62 in 2022. The absence of data for 2023 and 2024 prevents us from further analyzing the trend.
On the other hand, the total asset turnover ratio assesses how effectively a company is using its total assets to generate revenue. Bio-Rad Laboratories Inc's total asset turnover ratio has also shown variation during the period under consideration. In 2020, the ratio was 0.20, implying that the company generated $0.20 in sales for every dollar of assets. This ratio decreased to 0.16 in 2021 before gradually increasing to 0.21 in 2022, 0.22 in 2023, and further to 0.27 in 2024 indicating improvement in the company's efficiency in utilizing its assets to generate revenue.
Overall, it is essential for Bio-Rad Laboratories Inc to continue monitoring and managing its fixed asset turnover and total asset turnover ratios to ensure optimal utilization of assets and efficient revenue generation in the long term.