Bruker Corporation (BRKR)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently Bruker Corp is managing its assets and liabilities to generate sales and cash flow.

1. Inventory Turnover: Bruker Corp's inventory turnover has been fairly stable over the past five years, ranging from 1.50 to 1.87. This ratio indicates how many times inventory is sold and replaced within a period. A higher inventory turnover ratio generally indicates more efficient inventory management, as the company is selling its inventory quickly.

2. Receivables Turnover: Bruker Corp's receivables turnover has shown some fluctuation but has generally been between 5.35 and 6.03 over the same period. This ratio measures how many times receivables are collected within a year. A higher receivables turnover ratio suggests that the company is efficient in collecting payments from customers.

3. Payables Turnover: The payables turnover for Bruker Corp has been relatively stable, fluctuating between 6.87 and 9.10. This ratio indicates how quickly the company is paying its suppliers. A higher payables turnover ratio may suggest that the company is managing its payable obligations effectively.

4. Working Capital Turnover: Bruker Corp's working capital turnover has shown an increasing trend over the past five years, from 1.58 to 3.08. This ratio measures how effectively working capital is being used to generate revenue. A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to support its operations.

Overall, the analysis of Bruker Corp's activity ratios suggests that the company is managing its inventory, receivables, payables, and working capital efficiently to support its business operations and generate sales.

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Average number of days

Analyzing Bruker Corp's activity ratios over the past five years reveals some interesting trends.

First, looking at the Days of Inventory on Hand (DOH), we see an increasing trend from 195.56 days in 2019 to 243.54 days in 2023. This indicates that the company is taking longer to sell its inventory, which could tie up working capital and increase holding costs.

Next, examining the Days of Sales Outstanding (DSO), we observe some fluctuations but an overall decreasing trend from 63.79 days in 2019 to 60.58 days in 2023. A lower DSO suggests that Bruker Corp is collecting its accounts receivables more efficiently, which could improve cash flow and liquidity.

Finally, analyzing the Number of Days of Payables, we see an increasing trend from 40.12 days in 2019 to 50.98 days in 2023. This could indicate that the company is taking longer to pay its suppliers, potentially signaling financial distress or strained vendor relationships.

Overall, Bruker Corp's activity ratios suggest a need for the company to focus on optimizing its inventory management and payables strategies to improve efficiency and maintain healthy working capital levels.

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Long-term

Bruker Corp's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into how efficiently the company is utilizing its assets to generate revenue.

The fixed asset turnover ratio has been fluctuating over the years but generally indicates a moderate level of efficiency in utilizing fixed assets to generate sales. The ratio suggests that for every dollar invested in fixed assets, Bruker Corp is generating between $4.94 and $6.77 in sales, which indicates a relatively stable performance in leveraging its long-term assets to drive revenue.

On the other hand, the total asset turnover ratio has been relatively stable over the years, with values ranging between 0.65 and 0.75. This ratio reflects the company's overall efficiency in generating sales from all assets, including both fixed and current assets. A total asset turnover ratio below 1 may indicate that the company may be underutilizing its assets in generating revenue.

In conclusion, Bruker Corp has been maintaining a reasonable level of efficiency in utilizing its fixed assets to generate sales, while the total asset turnover ratio suggests that the company could potentially improve its overall utilization of assets to drive revenue in the long-term.