Bruker Corporation (BRKR)

Short-term

Turnover ratios

The analysis of Bruker Corporation's activity ratios reveals the following trends:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently the company is managing its inventory. Bruker Corporation's inventory turnover has shown mixed results over the years, with a slight increase from 1.51 in 2020 to 1.61 in 2024. This suggests that the company's inventory management improved slightly, leading to a faster turnover of inventory.

2. Receivables Turnover: The receivables turnover ratio indicates how efficiently the company collects payments from its customers. Bruker Corporation's receivables turnover has fluctuated slightly over the years but remained relatively stable, ranging from 5.35 in 2022 to 5.93 in 2020. This indicates that the company has been effective in collecting payments from customers within a reasonable timeframe.

3. Payables Turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. Bruker Corporation's payables turnover has also shown some variability, with a peak of 8.20 in 2021 and a low of 6.87 in 2022. Overall, the company appears to be managing its payables efficiently, maintaining a balance between timely payments and maintaining good relationships with suppliers.

4. Working Capital Turnover: The working capital turnover ratio measures how effectively the company utilizes its working capital to generate sales. Bruker Corporation's working capital turnover has shown a consistent positive trend, increasing from 1.75 in 2020 to 4.36 in 2024. This suggests that the company has been generating more sales revenue relative to its working capital, indicating efficient utilization of resources and potential for business growth.

In conclusion, Bruker Corporation has demonstrated mixed but generally positive trends in its activity ratios, indicating improvements in inventory management, efficient collection of receivables, effective management of payables, and increasing efficiency in utilizing working capital to drive sales growth.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Bruker Corporation as follows:

1. Days of Inventory on Hand (DOH): This ratio reflects the number of days it takes for Bruker Corporation to sell its inventory. Over the years from 2020 to 2024, the DOH fluctuated, starting at 241.18 days in 2020, decreasing to 214.51 days in 2021, and then increasing to 243.54 days by 2023. In 2024, the DOH improved to 227.01 days. A higher DOH may indicate excess inventory or slow inventory turnover, potentially tying up capital.

2. Days of Sales Outstanding (DSO): The DSO ratio represents the average number of days it takes for Bruker Corporation to collect revenue after making a sale. The DSO increased slightly from 61.58 days in 2020 to 65.05 days in 2024, indicating a longer collection period. A higher DSO may suggest issues with accounts receivable management or potential liquidity challenges.

3. Number of Days of Payables: This ratio shows the average payment period Bruker Corporation takes to pay its suppliers. The trend in days of payables decreased from 46.89 days in 2020 to 49.77 days in 2024. A longer payment period may help improve cash flow and working capital management.

Overall, Bruker Corporation's activity ratios indicate areas that may require attention, such as inventory management to reduce DOH and efficient accounts receivable collection to lower DSO. Analyzing and improving these ratios can enhance the company's operational efficiency and financial performance.

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Long-term

Based on the provided data, we can analyze Bruker Corporation's long-term activity ratios:

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company generates revenue from its investments in fixed assets.
- Bruker Corporation's fixed asset turnover ratio has shown fluctuation over the years. It was 5.03 in 2020, increased to 5.95 in 2021, dropped to 4.94 in 2023, and then increased to 5.03 in 2024.
- Overall, the company's ability to generate sales from its fixed assets has been relatively stable, with some variation seen in certain years.

2. Total Asset Turnover:
- The total asset turnover ratio indicates how efficiently a company utilizes its total assets to generate revenue.
- Bruker Corporation's total asset turnover ratio has shown a slight increase from 0.65 in 2020 to 0.66 in 2021, maintaining at 0.70 in 2022 and 2023, then decreasing to 0.58 in 2024.
- The company's ability to generate sales from its total assets has generally improved over the years, except for a decline in 2024, suggesting a potential inefficiency in asset utilization in that particular year.

In conclusion, Bruker Corporation's long-term activity ratios, particularly the fixed asset turnover and total asset turnover, indicate varying levels of efficiency in utilizing its assets to generate revenue. It is essential for the company to monitor and manage its asset turnover ratios to ensure optimal operational performance and profitability in the long run.