Bruker Corporation (BRKR)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 1.50 1.50 1.44 1.47 1.53 1.63 1.61 1.65 1.70 1.61 1.57 1.56 1.51 1.49 1.56 1.70 1.87 1.80 1.73 1.86
Receivables turnover 5.51 4.96 5.15 5.56 5.35 5.95 6.15 5.94 5.80 6.35 6.72 6.50 5.93 5.94 6.07 6.25 5.72 5.65 5.67 5.34
Payables turnover 7.16 7.55 6.95 6.43 6.87 7.76 7.88 7.57 8.20 8.37 8.02 7.17 7.78 9.10 8.73 8.36 9.10 9.04 8.34 7.98
Working capital turnover 3.08 2.94 2.40 2.42 2.11 2.14 1.95 1.79 1.58 2.21 2.23 2.11 1.75 1.71 1.63 1.66 1.80 2.56 2.58 2.71

The activity ratios of Bruker Corp provide valuable insights into the efficiency of the company's operations.

- Inventory turnover remains relatively stable between 1.44 and 1.65 over the past eight quarters, indicating that Bruker is managing its inventory efficiently. However, there may be room for improvement in optimizing inventory levels to enhance liquidity.

- Receivables turnover fluctuates significantly, ranging from 4.30 to 6.03. This suggests that Bruker is collecting its receivables at varying speeds, which could be influenced by factors such as credit policies and customer payment behavior. A higher turnover indicates quicker collection of receivables.

- Payables turnover has been consistent between 6.43 and 7.88, indicating that Bruker is effectively managing its payable obligations. A higher turnover ratio suggests that the company is paying its suppliers promptly, which can improve relationships and potentially lead to better credit terms.

- The working capital turnover has shown an increasing trend from 1.79 to 3.08 over the past eight quarters, indicating that Bruker is generating more revenue for each dollar of working capital invested. This suggests improved efficiency in the utilization of working capital to generate sales.

Overall, while Bruker Corp demonstrates notable efficiency in managing its inventory and working capital, there may be opportunities to further optimize receivables collection processes to enhance cash flow and liquidity.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 243.54 244.13 254.23 248.40 238.40 223.43 226.89 221.18 214.51 226.50 233.02 234.21 241.18 244.99 233.33 214.92 195.56 203.08 210.44 195.80
Days of sales outstanding (DSO) days 66.23 73.52 70.82 65.69 68.18 61.37 59.35 61.44 62.93 57.50 54.32 56.18 61.58 61.44 60.14 58.38 63.79 64.63 64.42 68.32
Number of days of payables days 50.98 48.37 52.48 56.75 53.16 47.01 46.31 48.19 44.53 43.61 45.51 50.91 46.89 40.10 41.80 43.64 40.12 40.36 43.78 45.72

Analyzing Bruker Corp's activity ratios provides insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): Bruker Corp's average days of inventory on hand have shown a slight increasing trend over the past year, fluctuating between 238.40 days and 254.23 days. This indicates that the company is taking longer to sell its inventory, which may tie up capital and increase storage costs. Management should focus on streamlining inventory management to avoid overstocking or obsolescence.

2. Days of Sales Outstanding (DSO): Bruker Corp's days of sales outstanding have varied significantly, ranging from 60.58 days to 84.98 days over the past year. A higher DSO suggests that the company takes longer to collect payments from customers, potentially impacting cash flow. It would be advisable for the company to review its credit policies and collection efforts to decrease outstanding receivables and improve liquidity.

3. Number of Days of Payables: The number of days of payables for Bruker Corp has also fluctuated, with values between 46.31 days and 56.75 days over the past year. A longer payment period indicates that the company is taking more time to settle its obligations to suppliers, which could strain supplier relationships or signal cash flow management issues. It is important for the company to strike a balance between managing cash flow and maintaining positive supplier relationships.

Overall, Bruker Corp should focus on optimizing its working capital management by reducing excess inventory, improving collections on outstanding receivables, and effectively managing payables to enhance efficiency and financial performance.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 4.94 5.35 5.19 5.13 5.20 5.94 6.27 6.09 5.95 6.07 5.69 5.51 5.03 5.53 5.86 6.39 6.77 7.29 6.99 7.19
Total asset turnover 0.70 0.74 0.70 0.70 0.70 0.75 0.73 0.69 0.66 0.76 0.73 0.70 0.65 0.68 0.67 0.69 0.75 0.86 0.84 0.86

Bruker Corp's long-term activity ratios provide insights into the company's efficiency in utilizing its assets to generate sales revenue. The fixed asset turnover ratio indicates how well the company is utilizing its fixed assets to generate sales. Bruker Corp's fixed asset turnover ratio has been showing a declining trend from Q4 2022 to Q4 2023, indicating a decrease in the efficiency of using its fixed assets to generate sales.

On the other hand, the total asset turnover ratio measures how efficiently the company is utilizing all its assets to generate sales. Bruker Corp's total asset turnover ratio has remained relatively stable around 0.70 over the past few quarters, indicating that the company is consistently generating sales revenue relative to its total assets.

Overall, while the fixed asset turnover ratio has shown a declining trend, the total asset turnover ratio has remained relatively stable. This suggests that although Bruker Corp may be experiencing challenges in efficiently using its fixed assets to generate sales, it is maintaining a consistent level of efficiency in utilizing all its assets to generate revenue.