Blackbaud Inc (BLKB)

Short-term

Turnover ratios

The analysis of Blackbaud Inc's activity ratios reveals the following trends:

1. Inventory Turnover:
- The inventory turnover ratio fluctuated over the period, ranging from a low of 0.66 to a high of 2.09.
- There is no clear trend in the inventory turnover ratio, indicating some inconsistency in managing inventory levels efficiently.
- A higher turnover ratio generally implies that the company is selling its inventory more quickly, while a lower ratio can suggest overstocking or slow-moving inventory.

2. Receivables Turnover:
- Data for the receivables turnover ratio is unavailable, indicating a lack of information on how quickly the company collects outstanding receivables from customers.
- Without this information, it is challenging to assess the efficiency of Blackbaud Inc in collecting cash from credit sales.

3. Payables Turnover:
- Similar to receivables turnover, data for payables turnover is not available, making it difficult to evaluate how effectively the company manages its trade credit with suppliers.
- A higher payables turnover ratio typically indicates that the company is paying its suppliers more quickly, while a lower ratio may suggest a longer payment period.

4. Working Capital Turnover:
- There is no data provided for the working capital turnover ratio, which would have indicated how efficiently the company utilizes its working capital to generate sales revenue.
- This ratio can demonstrate how effectively Blackbaud Inc is using its current assets to support its operations and sales activities.

In conclusion, while the inventory turnover ratio fluctuates, the lack of data for receivables turnover, payables turnover, and working capital turnover ratios limits a comprehensive assessment of Blackbaud Inc's overall efficiency in managing its working capital and operational activities.

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Average number of days

The activity ratios of Blackbaud Inc provide insights into the management of the company's inventory, accounts receivable, and payables.

1. Days of Inventory on Hand (DOH): Blackbaud Inc's DOH has fluctuated over the years, ranging from around 174 to 554 days. A decrease in DOH indicates a more efficient management of inventory while an increase may suggest overstocking or slowing sales. The company experienced significant fluctuations in its DOH, which could be due to changes in demand, supply chain disruptions, or inventory management practices.

2. Days of Sales Outstanding (DSO): The DSO, which measures how long it takes for the company to collect its accounts receivable, was not available in the data provided. Typically, a lower DSO indicates faster collections and efficient credit management. The absence of DSO data makes it challenging to assess Blackbaud Inc's effectiveness in collecting payments from customers.

3. Number of Days of Payables: The data does not include the number of days of payables for Blackbaud Inc. This ratio would have provided insight into how long the company takes to pay its suppliers. A longer payable period might indicate an opportunity to improve cash flow management, while a shorter period could strain supplier relationships.

In conclusion, while the information provided offers some insight into Blackbaud Inc's inventory management through the DOH ratio, the lack of DSO and payable days data limits a comprehensive analysis of the company's overall effectiveness in managing its working capital and cash flow.

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Long-term

The fixed asset turnover ratio of Blackbaud Inc has shown a decreasing trend over the years, starting at a high of 25.47 in March 2020 and gradually declining to 10.21 in June 2023. This ratio measures how efficiently the company generates revenue from its fixed assets, such as property, plant, and equipment. The decrease in the ratio indicates a potential inefficiency in utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio of the company has been fluctuating over the same period, ranging from 0.31 in December 2021 to 0.56 in September 2021. This ratio reflects the company's ability to generate sales relative to its total assets. The fluctuation in this ratio suggests variability in how effectively the company is utilizing its total assets to generate revenue.

Overall, the decreasing trend in the fixed asset turnover ratio and the fluctuating total asset turnover ratio indicate that Blackbaud Inc may have faced challenges in efficiently utilizing its assets to generate sales consistently over the years. Further analysis and investigation into the company's operational efficiency and asset management practices may be necessary to address these trends.