Blackline Inc (BL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 3.40 | 3.44 | 2.84 | 2.95 | 2.70 |
| Payables turnover | 60.60 | 34.64 | 55.43 | 108.18 | 39.88 |
| Working capital turnover | 0.76 | 0.59 | 0.35 | 0.76 | 0.54 |
The activity ratios for Blackline Inc provide insights into how efficiently the company is managing its inventory, receivables, payables, and working capital over the past five years.
1. Inventory Turnover: Unfortunately, the data for inventory turnover is not provided, making it difficult to assess how effectively the company is managing its inventory levels and sales.
2. Receivables Turnover: The receivables turnover ratio signifies that Blackline Inc has improved its efficiency in collecting receivables from customers over the five-year period. The ratio has consistently been above 2.5 times, indicating that the company is collecting payments from customers at an average rate of approximately 3 times a year.
3. Payables Turnover: The payables turnover ratio shows that Blackline Inc has been efficiently managing its payments to suppliers over the years. The significant increase in the ratio from 2019 to 2020 suggests the company has improved its payment management system, with a notable peak in 2020. This ratio indicates that the company is paying its suppliers approximately 60 to 110 times a year.
4. Working Capital Turnover: The working capital turnover ratio reflects how effectively Blackline Inc is utilizing its working capital to generate sales revenue. The data indicates that the company's ability to generate sales from its working capital has fluctuated, with highs in 2020 and 2023. This may suggest variations in the company's sales generation efficiency over the years.
In summary, the data reveals that Blackline Inc has been successful in managing its receivables and payables efficiently, although the absence of inventory turnover data limits a comprehensive analysis of the company's overall activity ratios. Additionally, the working capital turnover ratio fluctuates, indicating potential variations in sales generation efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 107.39 | 106.19 | 128.42 | 123.58 | 135.00 |
| Number of days of payables | days | 6.02 | 10.54 | 6.58 | 3.37 | 9.15 |
Days of Inventory on Hand (DOH) is not available for all the years in the provided data. However, we can analyze the Days of Sales Outstanding (DSO) and Number of Days of Payables for Blackline Inc.
The Days of Sales Outstanding measures how long it takes for the company to collect revenue after a sale. In 2023, the DSO is 107.39 days, a slight increase from the previous year. This could indicate that Blackline Inc is taking slightly longer to collect payments from its customers, which may lead to potential cash flow issues if not managed effectively.
The Number of Days of Payables highlights how long it takes for the company to pay its suppliers. In 2023, the company takes 6.02 days to pay its payables, a decrease from the prior year. This suggests that Blackline Inc is managing its payments to suppliers more efficiently, possibly taking advantage of favorable credit terms or negotiating better payment terms.
Overall, while the Days of Sales Outstanding is showing a slight increase, the improvement in the Number of Days of Payables indicates that Blackline Inc is effectively managing its cash flow and working capital to some extent. However, continuous monitoring and optimization of these activity ratios will be crucial for maintaining a healthy financial position and liquidity.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 39.23 | 26.18 | 21.79 | 24.82 | 21.52 |
| Total asset turnover | 0.28 | 0.27 | 0.20 | 0.30 | 0.28 |
Blackline Inc's long-term activity ratios provide insights into how efficiently the company generates sales relative to its investment in fixed assets and total assets.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company utilizes its fixed assets to generate revenue. Blackline Inc has shown a consistent improvement in this ratio over the past five years, with a significant increase from 21.52 in 2019 to 39.23 in 2023. This indicates that the company is generating $39.23 in sales for every dollar invested in fixed assets in 2023, reflecting efficient utilization and productivity in the use of fixed assets.
2. Total Asset Turnover:
- The total asset turnover ratio evaluates the efficiency of the company's total assets in generating revenue. Blackline Inc's total asset turnover ratio has been relatively stable over the past five years, fluctuating between 0.20 and 0.30. In 2023, the total asset turnover ratio was 0.28, implying that the company generated $0.28 in sales for every dollar of total assets. While the ratio remained consistent, it indicates that Blackline Inc is effectively leveraging its total assets to generate revenue.
Overall, Blackline Inc has shown a strong performance in both fixed asset turnover and total asset turnover, suggesting efficient utilization of assets to drive sales. The increasing trend in fixed asset turnover and the stable total asset turnover ratio indicate effective management of assets and operations to support revenue generation and growth.