Celsius Holdings Inc (CELH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.99 | 2.21 | 0.97 | 3.79 | 2.87 |
| Receivables turnover | 7.09 | 9.86 | 7.60 | 7.75 | 8.39 |
| Payables turnover | 15.99 | 10.56 | 5.20 | 5.88 | 4.32 |
| Working capital turnover | 1.42 | 0.86 | 1.86 | 1.96 | 3.03 |
Celsius Holdings Inc's activity ratios provide valuable insight into the efficiency of the company's operations over the past five years.
1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a certain period.
- The trend for Celsius Holdings shows fluctuations, with the ratio peaking in 2020 at 3.79, dropping in 2021, and then increasing again in 2023.
- Overall, the company takes around 2 to 3 years to turn over its inventory, indicating moderate efficiency in managing its inventory levels.
2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently a company manages its credit sales and collects its accounts receivable.
- Celsius Holdings Inc has shown a consistent trend of receivables turnover over the past five years, ranging from 7.17 to 10.32.
- The higher turnover rates signify that the company is collecting its receivables relatively quickly, which is a positive indicator of efficient credit management.
3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers for credit purchases.
- Celsius Holdings has shown an increasing trend in payables turnover over the years, reaching 15.99 in 2023.
- The higher turnover ratio indicates that the company is managing its payables efficiently by paying its suppliers promptly.
4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales.
- Celsius Holdings' working capital turnover has fluctuated over the years, with a peak in 2019 at 3.03 and a dip in 2022.
- The ratios below 2 in recent years suggest that the company generates revenue at a slower pace relative to its working capital, indicating a potential inefficiency in utilizing its resources.
Overall, analyzing Celsius Holdings Inc's activity ratios reveals varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the past five years. The company should further investigate the fluctuations in these ratios to optimize its operational performance and financial health.
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 | 122.19 | 165.26 | 375.04 | 96.30 | 127.30 |
| Days of sales outstanding (DSO) | days | 51.52 | 37.02 | 48.00 | 47.11 | 43.50 |
| Number of days of payables | days | 22.83 | 34.57 | 70.25 | 62.03 | 84.58 |
Celsius Holdings Inc's activity ratios reflect the efficiency of the company's operations over the years. The days of inventory on hand (DOH) measure how long it takes for the company to sell its inventory. The trend in DOH shows improvement from 2018 to 2021, indicating better inventory management. However, there was a significant increase in 2022, possibly pointing to challenges in inventory control.
Days of sales outstanding (DSO) indicates how long it takes for the company to collect its accounts receivable. The decreasing trend in DSO from 2019 to 2021 suggests improved efficiency in collecting receivables. However, there was a slight increase in 2022, which could signal potential issues with credit policies or customer payment behavior.
The number of days of payables measures how long it takes for the company to pay its suppliers. The decreasing trend in payables days from 2019 to 2023 indicates that the company has been paying its suppliers more quickly over time, which could have implications for cash flow management and supplier relationships.
Overall, while there have been fluctuations in the activity ratios of Celsius Holdings Inc over the years, trends such as improved inventory management and receivables collection efficiency are positive signs for the company's operational performance. However, the increase in inventory days in 2022 and the decreasing payables days may require further investigation to understand the underlying reasons and potential impacts on the company's financial health.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 53.00 | 64.17 | 98.83 | 225.78 | 565.02 |
| Total asset turnover | 0.86 | 0.53 | 1.00 | 1.00 | 0.83 |
The fixed asset turnover ratio for Celsius Holdings Inc has been showing a decreasing trend over the past five years, indicating that the company is generating fewer sales from its fixed assets. This could be a sign of inefficiency in utilizing its fixed assets to generate revenue. The ratio decreasing from 565.02 in 2019 to 53.00 in 2023 is quite significant and warrants further investigation.
On the other hand, the total asset turnover ratio has been inconsistent, with fluctuations observed from year to year. The ratio below 1 in 2023 and 2022 implies that the company generated less than $1 of sales for each dollar of total assets, indicating a potential inefficiency in asset utilization. However, the ratio reaching 1.00 in 2021 and 2020 suggests that the company was able to generate sales equal to its total assets in these years.
Overall, the analysis of these long-term activity ratios highlights the importance of closely monitoring the company's asset utilization efficiency to ensure optimal performance and profitability.