Calix Inc (CALX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.29 | 4.58 | 5.67 | 8.02 | 8.93 |
| Receivables turnover | 8.26 | 9.25 | 7.97 | 7.74 | 9.07 |
| Payables turnover | 24.07 | 16.50 | 17.33 | 31.96 | 33.23 |
| Working capital turnover | 2.54 | 2.27 | 2.42 | 3.24 | 14.89 |
Calix Inc's activity ratios provide insights into how efficiently the company is managing its assets and liabilities to generate sales and pay its suppliers.
1. Inventory turnover: This ratio indicates how many times Calix Inc sells and replenishes its inventory within a given period. The trend in inventory turnover has been fluctuating, with a decrease from 5.89 in 2019 to 2.90 in 2022 but a subsequent increase to 3.92 in 2023. A lower ratio may signify overstocking, while a higher ratio indicates efficient inventory management.
2. Receivables turnover: This ratio measures how quickly Calix Inc collects its accounts receivable. The company's receivables turnover has been relatively stable over the years, ranging between 7.80 and 9.25. A higher turnover indicates a shorter collection period, which is favorable for cash flow and liquidity.
3. Payables turnover: The payables turnover ratio reflects how quickly Calix Inc pays its suppliers. The trend shows fluctuations in payables turnover, with a peak of 21.91 in 2019 and a decrease to 10.44 in 2022, followed by an increase to 15.00 in 2023. A higher ratio suggests a shorter payment period, potentially indicating good relationships with suppliers.
4. Working capital turnover: This ratio evaluates how efficiently Calix Inc is utilizing its working capital to generate sales. The company's working capital turnover has declined significantly from 14.98 in 2019 to 2.27 in 2022, but it slightly improved to 2.53 in 2023. A lower turnover ratio may suggest underutilization of working capital or decreased sales efficiency.
Overall, Calix Inc's activity ratios reveal varying levels of efficiency in managing its assets and liabilities over the years. Monitoring these ratios can help assess operational effectiveness and identify areas for improvement in working capital management.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 58.05 | 79.69 | 64.40 | 45.52 | 40.88 |
| Days of sales outstanding (DSO) | days | 44.21 | 39.44 | 45.78 | 47.16 | 40.26 |
| Number of days of payables | days | 15.17 | 22.12 | 21.06 | 11.42 | 10.98 |
Calix Inc's activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying suppliers.
1. Days of Inventory on Hand (DOH):
- The trend for DOH shows fluctuations over the years, with a significant increase in 2022 compared to 2021. This suggests potential issues with inventory management during that period. However, in 2023, the DOH decreased, indicating improved efficiency in managing inventory levels.
2. Days of Sales Outstanding (DSO):
- The DSO ratio indicates how quickly Calix Inc collects payments from customers. The trend shows slight fluctuations, with an increase in DSO from 2020 to 2021, followed by a decrease in 2022 and another increase in 2023. This may indicate changes in credit policies or collection processes during these years.
3. Number of Days of Payables:
- The trend for payables days shows variability over the years, with a general increase from 2019 to 2021, followed by a decrease in 2022 and 2023. The decrease in payables days could suggest that Calix Inc is paying its suppliers more promptly in recent years.
Overall, analyzing these activity ratios in conjunction with other financial metrics can provide a more comprehensive understanding of Calix Inc's operational efficiency and working capital management. Investors and stakeholders may use this information to assess the company's liquidity and operational performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 35.31 | 33.60 | 31.19 | 26.36 | 19.59 |
| Total asset turnover | 1.10 | 0.98 | 0.92 | 1.26 | 1.33 |
The fixed asset turnover ratio for Calix Inc has shown a positive trend over the past five years, indicating the company's ability to generate higher sales relative to its investment in fixed assets. This implies that Calix has been utilizing its fixed assets efficiently to generate revenue. The ratio has steadily increased from 19.71 in 2019 to 35.29 in 2023, reflecting improved operational efficiency and potentially more effective asset utilization.
On the other hand, the total asset turnover ratio has been fluctuating over the same period. This ratio measures the company's ability to generate sales from its total assets. The declining trend from 1.34 in 2019 to 0.98 in 2022 suggests that the company may not be utilizing its total assets as effectively to generate revenue. However, the ratio rebounded to 1.10 in 2023, indicating a potential improvement in asset utilization efficiency.
Overall, while the fixed asset turnover ratio for Calix Inc has shown consistent improvement, there have been fluctuations in the total asset turnover ratio. This suggests that the company may need to focus on optimizing the utilization of its total assets to drive revenue growth and operational efficiency consistently.