Bio-Rad Laboratories Inc (BIO)
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 | 2.61 | 2.70 | 2.72 | 2.78 | 2.84 | 3.07 | 3.22 | 3.53 | 3.84 | 3.59 | 3.45 | 3.26 | 2.95 | 2.97 | 2.99 | 3.42 | 3.44 | 2.86 | 2.86 | 2.89 |
| Receivables turnover | 5.27 | 5.73 | 5.46 | 5.34 | 5.48 | 6.30 | 6.26 | 6.15 | 6.87 | 7.10 | 7.17 | 6.60 | 6.04 | 5.88 | 6.31 | 6.05 | 5.84 | 6.42 | 6.00 | 5.80 |
| Payables turnover | 14.09 | 18.71 | 14.13 | 12.99 | 15.12 | 14.74 | 13.35 | 13.31 | 15.49 | 15.48 | 15.47 | 14.26 | 13.16 | 14.29 | — | — | 17.79 | — | — | — |
| Working capital turnover | 1.04 | 1.04 | 1.07 | 1.02 | 1.07 | 1.08 | 1.08 | 1.09 | 2.23 | 1.64 | 1.69 | 1.73 | 1.68 | 1.78 | 1.90 | 1.91 | 1.80 | 1.42 | 1.38 | 1.43 |
Bio-Rad Laboratories Inc.'s activity ratios provide insights into the efficiency of the company's operations.
1. Inventory turnover ratio:
The inventory turnover ratio has been declining slightly over the quarters, indicating that Bio-Rad Laboratories is taking longer to sell its inventory. This may be due to changes in demand, production delays, or other operational factors.
2. Receivables turnover ratio:
The receivables turnover ratio has been fluctuating but generally remained stable. A higher ratio indicates that the company is efficient in collecting sales from customers, which is positive for cash flow and liquidity.
3. Payables turnover ratio:
The payables turnover ratio has also been fluctuating, with a notable decrease in Q3 2023 compared to the previous quarter. A lower ratio may suggest that the company is taking longer to pay its suppliers, which could impact vendor relationships and potentially lead to cash flow issues.
4. Working capital turnover ratio:
The working capital turnover ratio has been relatively stable, hovering around 1.05 to 1.09. This ratio measures how efficiently the company is using its working capital to generate sales. A consistent ratio indicates that Bio-Rad Laboratories is effectively utilizing its resources to support its operations and growth.
Overall, while there are some fluctuations in the activity ratios of Bio-Rad Laboratories Inc., the company is generally maintaining efficiency in managing its inventory, receivables, payables, and working capital to support its business 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 | 139.79 | 135.29 | 134.12 | 131.42 | 128.57 | 118.98 | 113.52 | 103.38 | 95.02 | 101.77 | 105.91 | 111.88 | 123.74 | 122.99 | 122.27 | 106.85 | 106.20 | 127.67 | 127.68 | 126.29 |
| Days of sales outstanding (DSO) | days | 69.31 | 63.66 | 66.91 | 68.30 | 66.60 | 57.94 | 58.35 | 59.35 | 53.17 | 51.40 | 50.92 | 55.34 | 60.47 | 62.05 | 57.82 | 60.37 | 62.52 | 56.88 | 60.82 | 62.94 |
| Number of days of payables | days | 25.90 | 19.51 | 25.83 | 28.10 | 24.14 | 24.76 | 27.34 | 27.43 | 23.57 | 23.57 | 23.60 | 25.60 | 27.73 | 25.55 | — | — | 20.51 | — | — | — |
The activity ratios of Bio-Rad Laboratories Inc. indicate the efficiency of the company in managing its inventory, receivables, and payables during the specified quarters.
1. Days of Inventory on Hand (DOH): Bio-Rad Laboratories Inc. shows an increasing trend in the number of days of inventory on hand over the quarters, signifying a longer period it takes to sell its inventory. This suggests a potential need for better inventory management to prevent overstocking and reduce carrying costs.
2. Days of Sales Outstanding (DSO): The company's days of sales outstanding have also been increasing over the periods, indicating a longer time taken to collect its accounts receivables. This might imply a need for more efficient credit and collection policies to improve cash flow and liquidity.
3. Number of Days of Payables: Bio-Rad Laboratories Inc. experienced fluctuations in the number of days of payables during the quarters, with some periods showing an increase. A higher number of days of payables may suggest a potential delay in paying suppliers, which could be a strategic move to manage cash flow or a sign of liquidity challenges.
Overall, Bio-Rad Laboratories Inc. may benefit from evaluating and optimizing its inventory management, accounts receivables collection processes, and payables strategies to enhance operational efficiency and financial performance.
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 | 4.99 | 5.25 | 5.31 | 5.41 | 5.56 | 6.02 | 6.06 | 5.96 | 5.71 | 6.25 | 5.97 | 5.60 | 5.17 | 4.94 | 4.75 | 4.76 | 4.59 | 4.61 | 4.54 | 4.52 |
| Total asset turnover | 0.21 | 0.23 | 0.23 | 0.20 | 0.21 | 0.23 | 0.23 | 0.20 | 0.16 | 0.15 | 0.19 | 0.19 | 0.20 | 0.20 | 0.23 | 0.27 | 0.29 | 0.32 | 0.30 | 0.33 |
The long-term activity ratios for Bio-Rad Laboratories Inc. provide valuable insights into how efficiently the company is utilizing its fixed assets and total assets to generate revenue.
1. Fixed Asset Turnover: This ratio indicates how effectively Bio-Rad Laboratories is utilizing its fixed assets to generate sales. The trend shows a slight decline in fixed asset turnover from Q1 2022 to Q4 2023, indicating that the company may be experiencing challenges in generating sales from its fixed assets. However, the ratios remain relatively high, with values ranging from 5.05 to 6.09 during the period under review. This suggests that Bio-Rad Laboratories is efficient in generating revenue from its investment in fixed assets.
2. Total Asset Turnover: The total asset turnover ratio reflects how well Bio-Rad Laboratories is using all of its assets to generate sales. The trend shows fluctuations in total asset turnover over the period, with values ranging from 0.20 to 0.23. Despite the fluctuations, the company has maintained relatively stable total asset turnover ratios. The ratios indicate that Bio-Rad Laboratories is not as efficient in generating revenue from its total assets compared to its fixed assets.
In conclusion, Bio-Rad Laboratories Inc. has managed to efficiently generate revenue from its fixed assets, as indicated by the high fixed asset turnover ratios. However, the company's performance in terms of total asset turnover shows room for improvement in utilizing all of its assets effectively to drive sales. This analysis suggests that Bio-Rad Laboratories may need to focus on optimizing the use of its total assets to improve overall operational efficiency and financial performance.