Calix Inc (CALX)

Short-term

Turnover ratios

Inventory Turnover:

- The inventory turnover ratio measures the number of times a company's inventory is sold and replaced during a specific period.
- Calix Inc's inventory turnover has been fluctuating over the years, decreasing from 5.25 in 2020 to 3.63 in 2021, further dropping to 2.90 in 2022, then increasing to 3.92 in 2023, and settling at 3.68 in 2024.
- A decreasing trend in inventory turnover may indicate inefficiencies in managing inventory levels or potential overstocking, while an increasing trend could signal improved inventory management.

Receivables Turnover:

- The receivables turnover ratio shows how efficiently a company collects payment from its customers.
- Calix Inc did not provide data for receivables turnover for the years 2020 to 2024.
- Without this data, it is challenging to assess the effectiveness in collecting receivables or to compare it with industry benchmarks.

Payables Turnover:

- The payables turnover ratio reflects how quickly a company is paying off its suppliers.
- Calix Inc did not disclose information on payables turnover for the years 2020 to 2024.
- The absence of this data limits the insight into the company's payment policies and liquidity management.

Working Capital Turnover:

- The working capital turnover ratio indicates how efficiently a company is using its working capital to generate sales.
- Calix Inc's working capital turnover has been gradually decreasing from 3.26 in 2020 to 1.83 in 2024.
- A declining trend in this ratio may suggest inefficiencies in utilizing working capital or potential issues in managing resources effectively to drive sales.

In conclusion, while the analysis of Calix Inc's activity ratios provides some insights into its inventory management and working capital efficiency, the lack of data on receivables and payables turnovers limits a comprehensive assessment of the company's overall operational efficiency and working capital management.

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Average number of days

Based on the provided data, let's analyze the activity ratios of Calix Inc:

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days, on average, a company holds its inventory before selling it.
- The trend for Calix Inc's DOH from 2020 to 2024 shows an increase from 69.57 days to 99.21 days.
- A higher DOH may indicate slower inventory turnover, potentially tying up cash in inventory and increasing storage costs.
- The fluctuation in DOH over the years suggests changes in inventory management efficiency which could impact working capital and profitability.

2. Days of Sales Outstanding (DSO):
- The DSO ratio reflects how long it takes for a company to collect its accounts receivable.
- The data for Calix Inc shows "— days" for all years, indicating a lack of information on this activity ratio.
- Without DSO data, it is challenging to assess the efficiency of Calix Inc's accounts receivable management and its impact on cash flow.

3. Number of Days of Payables:
- This ratio represents the average number of days a company takes to pay its suppliers or vendors.
- For Calix Inc, the data shows "— days" for all years, suggesting a lack of insight into the company's payables management efficiency.
- Understanding the payment terms with suppliers is crucial as it impacts cash flow and relationships with vendors.

In conclusion, the analysis of Calix Inc's activity ratios reveals a clear trend in inventory management efficiency through DOH, however, the lack of data on DSO and payables hinders a comprehensive evaluation of the company's overall working capital management. It is essential for investors and stakeholders to have complete information on all activity ratios to understand the company's operational efficiency and financial health.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. In the case of Calix Inc, the fixed asset turnover ratio has shown fluctuations over the years.

- In 2020, the fixed asset turnover ratio was 26.56, indicating that for every dollar invested in fixed assets, the company generated $26.56 in sales.
- In 2021, the ratio decreased to 20.00, suggesting a decrease in the efficiency of utilizing fixed assets to generate sales.
- The ratio improved in 2022, reaching 33.59, indicating a significant increase in the efficiency of asset utilization for sales generation.
- The data for 2023 and 2024 is not available (denoted by "--"), making it difficult to assess the trend beyond 2022.

Additionally, the total asset turnover ratio reflects how effectively the company is using all its assets to generate revenue.
- In 2020, the total asset turnover ratio was 1.27, showing that for every dollar of assets, the company generated $1.27 in sales.
- The ratio declined in 2021 to 0.92, indicating a decrease in the efficiency of overall asset utilization for revenue generation.
- It slightly improved in 2022 to 0.98 but then rose significantly in 2023 to 1.10 before dropping to 0.89 in 2024.

Overall, the analysis of Calix Inc's long-term activity ratios suggests a mixed performance in efficiently utilizing fixed assets and total assets to generate sales revenue over the specified period. The trend in fixed asset turnover showed fluctuations, while total asset turnover exhibited varying levels of effectiveness in asset utilization for revenue generation.