BioLife Solutions Inc (BLFS)

Short-term

Turnover ratios

BioLife Solutions Inc's activity ratios show mixed trends over the past five years.

1. Inventory Turnover: The inventory turnover ratio measures how efficiently the company manages its inventory. BioLife Solutions Inc's inventory turnover has fluctuated during the period, decreasing from 2.13 in 2020 to 1.82 in 2024. The ratio hit its peak in 2022 at 5.42, indicating the company was able to sell and replace its inventory more frequently that year.

2. Receivables Turnover: This ratio reflects how quickly the company collects payment from its customers. BioLife Solutions Inc's receivables turnover has been increasing steadily over the years, from 6.01 in 2020 to 10.69 in 2024. This improvement suggests that the company has been more efficient in collecting payments from its customers.

3. Payables Turnover: The payables turnover ratio indicates how quickly the company pays its suppliers. BioLife Solutions Inc's payables turnover has been quite volatile, ranging from a low of 3.77 in 2021 to a high of 46.99 in 2023. A higher turnover ratio in this case could imply that the company is taking longer to pay its suppliers, potentially resulting in better cash flow.

4. Working Capital Turnover: This ratio measures how effectively the company utilizes its working capital to generate revenue. BioLife Solutions Inc's working capital turnover has also shown fluctuations, with the ratio peaking in 2023 at 1.82. A higher turnover ratio in this case indicates that the company has been able to generate more revenue per unit of working capital employed.

Overall, while the inventory turnover has shown a slight decline, the receivables turnover, payables turnover, and working capital turnover ratios have demonstrated positive trends, indicating improvements in collection efficiency, potential cash management strategies, and utilization of working capital in generating revenue.

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Average number of days

The activity ratios of BioLife Solutions Inc provide insights into its efficiency in managing inventory, collecting receivables, and paying its suppliers:

1. Days of Inventory on Hand (DOH):
- The company's DOH has fluctuated over the years, starting at 171.30 days in December 2020 and reaching a peak of 200.37 days in December 2024. In general, a higher DOH indicates that the company is holding excess inventory, potentially tying up working capital and increasing holding costs. The significant increase in DOH from 2020 to 2024 may suggest inefficiencies in inventory management or challenges in forecasting demand.

2. Days of Sales Outstanding (DSO):
- BioLife Solutions Inc's DSO has varied from 60.77 days in December 2020 to 34.15 days in December 2024. A decreasing trend in DSO indicates that the company is collecting its receivables more quickly, which is generally a positive sign as it improves cash flow and liquidity. The company has successfully reduced its DSO over the years, showing efficiency in credit and collection management.

3. Number of Days of Payables:
- The number of days of payables for BioLife Solutions Inc ranged from 54.22 days in December 2020 to 24.68 days in December 2024. A lower number of days of payables suggests that the company is taking fewer days to pay its suppliers, potentially indicating stronger bargaining power or supplier relationships. The decreasing trend in payables days may have implications on working capital management and cash flow.

In summary, BioLife Solutions Inc has shown improvements in managing its receivables efficiently over the years, as evidenced by the decreasing DSO. However, the increase in DOH and the decrease in payables days should be carefully evaluated to ensure effective working capital management and operational efficiency.

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Long-term

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales. Analyzing the long-term activity ratios of BioLife Solutions Inc based on the provided data, we can observe the following trends:

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. A higher ratio indicates better utilization of fixed assets.
- BioLife Solutions Inc's fixed asset turnover has shown a consistent increase over the years, from 4.75 in 2020 to 16.10 in 2024. This suggests that the company has been more effective in generating sales from its fixed assets.
- The significant increase from 2023 to 2024, with a ratio jumping from 25.07 to 16.10, may signal either a reduction in fixed assets or a substantial increase in sales.

2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company generates sales from all its assets. A higher ratio indicates efficient asset utilization.
- BioLife Solutions Inc's total asset turnover has shown some fluctuation over the years, ranging from 0.20 in 2020 to 0.25 in 2024.
- Although there was a slight increase in the total asset turnover ratio from 2020 to 2024, the ratios are relatively low compared to fixed asset turnover, indicating that the company may have a significant portion of assets that are not generating substantial sales.

In conclusion, the analysis of BioLife Solutions Inc's long-term activity ratios suggests that the company has shown improvements in efficiently utilizing its fixed assets to generate sales. However, there may still be opportunities to enhance the overall utilization of total assets to drive revenue growth further.