BioLife Solutions Inc (BLFS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.45 | 5.42 | 1.99 | 2.13 | 2.22 |
| Receivables turnover | 7.64 | 4.74 | 5.12 | 6.01 | 5.12 |
| Payables turnover | 15.37 | 12.32 | 3.77 | 6.73 | 7.81 |
| Working capital turnover | 1.82 | 1.72 | 1.43 | 0.49 | 1.66 |
BioLife Solutions Inc's activity ratios provide insights into its operational efficiency and management of assets and liabilities:
1. Inventory turnover: The company's inventory turnover has fluctuated over the years, with a notable decrease in 2023 compared to 2022. A high inventory turnover ratio indicates that inventory is being managed efficiently and sold quickly. However, the decreasing trend in recent years may suggest slower sales or overstocking.
2. Receivables turnover: The receivables turnover ratio has increased steadily over the years, indicating that the company is collecting its accounts receivable at a faster rate. This suggests effective credit management and timely collection of payments from customers.
3. Payables turnover: The payables turnover ratio has shown volatility, with a significant increase in 2023 compared to previous years. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which may imply improved liquidity but could also indicate potential strain on cash flows.
4. Working capital turnover: The working capital turnover ratio measures how effectively the company generates revenue from its working capital. The ratio has fluctuated over the years, with a notable increase in 2023. A high working capital turnover ratio indicates efficient use of working capital to generate sales, reflecting good operational efficiency.
Overall, while the company's activity ratios demonstrate improvements in certain areas like receivables turnover and working capital turnover, fluctuations in others such as inventory turnover and payables turnover may warrant further analysis to assess the company's overall operational performance and financial health.
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 | 148.69 | 67.29 | 183.79 | 171.30 | 164.31 |
| Days of sales outstanding (DSO) | days | 47.75 | 76.94 | 71.31 | 60.77 | 71.29 |
| Number of days of payables | days | 23.75 | 29.63 | 96.90 | 54.22 | 46.71 |
1. Days of Inventory on Hand (DOH):
- The DOH ratio for BioLife Solutions Inc has shown significant fluctuations over the past five years. In 2021, the company had a high DOH of 183.79 days, indicating that the company held inventory for an extended period before selling it. This was followed by a sharp decrease in 2022 to 67.29 days, suggesting a more efficient management of inventory levels. However, in 2023, the DOH increased again to 148.69 days, reflecting a potential increase in inventory holding periods.
2. Days of Sales Outstanding (DSO):
- The DSO ratio for BioLife Solutions Inc has also varied over the years. A high DSO indicates that the company takes longer to collect its accounts receivable. In 2023, the DSO improved to 47.75 days, suggesting a more efficient collections process compared to the previous years. The DSO peaked in 2022 at 76.94 days, indicating a slower cash conversion cycle. Overall, the downward trend in DSO from 2022 to 2023 is a positive sign for the company's liquidity.
3. Number of Days of Payables:
- The number of days of payables indicates the average time it takes for a company to pay its suppliers. A longer period may indicate a better cash flow position. BioLife Solutions Inc's days of payables have fluctuated over the years, with 2021 showing a high of 96.90 days, which decreased sharply to 29.63 days in 2022. In 2023, the days of payables further decreased to 23.75 days. This suggests that the company may be managing its payables more efficiently, potentially improving its relationships with suppliers.
Overall, analyzing the activity ratios of BioLife Solutions Inc provides insights into the company's inventory management, accounts receivable collection efficiency, and payment practices. Monitoring these ratios over time can help assess the company's operational efficiency and working capital management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 6.77 | 6.81 | 6.73 | 4.75 | 4.91 |
| Total asset turnover | 0.35 | 0.36 | 0.21 | 0.20 | 0.29 |
The Fixed Asset Turnover ratio measures how efficiently BioLife Solutions Inc is utilizing its fixed assets to generate revenue. The company has maintained a relatively stable and high Fixed Asset Turnover ratio over the past five years, indicating that it is effectively utilizing its fixed assets to generate sales. This suggests that BioLife Solutions Inc is efficiently managing its fixed assets to support its operations and revenue generation.
On the other hand, the Total Asset Turnover ratio reflects the company's overall efficiency in utilizing all its assets to generate sales. BioLife Solutions Inc has shown an upward trend in its Total Asset Turnover ratio over the past five years, indicating an improvement in efficiency in generating revenue from its total assets. However, the ratio still remains relatively low, which may indicate that there is room for further improvement in utilizing all assets more effectively to generate sales.
Overall, the analysis of the long-term activity ratios suggests that BioLife Solutions Inc is effectively utilizing its fixed assets to generate revenue, while also showing improvement in utilizing its total assets efficiently. Continued focus on asset management and operational efficiency could further enhance the company's performance in the long term.