Celsius Holdings Inc (CELH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 9.15 | 2.99 | 2.21 | 0.97 | 3.79 |
| Receivables turnover | 5.15 | 7.09 | 9.86 | 7.60 | 7.75 |
| Payables turnover | 29.08 | 15.99 | 10.56 | 5.20 | 5.88 |
| Working capital turnover | 1.45 | 1.42 | 0.86 | 1.86 | 1.96 |
Celsius Holdings Inc's activity ratios provide insight into how efficiently the company is managing its resources.
1. Inventory turnover: This ratio measures how many times inventory is sold and replaced within a given period. A decreasing trend in inventory turnover from 3.79 in 2020 to 0.97 in 2021, followed by an increase to 2.21 in 2022, 2.99 in 2023, and a significant rise to 9.15 in 2024, indicates that the company is improving its inventory management by selling products faster or holding less inventory.
2. Receivables turnover: This ratio represents how quickly the company is collecting payments from customers. The consistency in receivables turnover from 7.75 in 2020 to 7.60 in 2021 and slight variations to 9.86 in 2022, 7.09 in 2023, and 5.15 in 2024 may suggest a stable collection process or potential issues in credit management during the later periods.
3. Payables turnover: This ratio shows how many times the company pays its suppliers within a period. The significant increase in payables turnover from 5.88 in 2020 to 5.20 in 2021, followed by a sharp rise to 10.56 in 2022, 15.99 in 2023, and a substantial peak at 29.08 in 2024, indicates that the company is taking longer to pay its suppliers, potentially gaining more favorable credit terms.
4. Working capital turnover: This ratio evaluates how efficiently the company is utilizing its working capital to generate revenue. The slight variations in working capital turnover from 1.96 in 2020 to 1.86 in 2021, a decrease to 0.86 in 2022, followed by improvements to 1.42 in 2023, and a stable figure of 1.45 in 2024 suggest that the company is effectively using its working capital over the years, with a slight drop in efficiency in 2022.
Overall, these activity ratios reflect changes in management efficiency in handling inventory, receivables, payables, and working capital over the specified period, influencing the company's operational and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 39.88 | 122.19 | 165.26 | 375.04 | 96.30 |
| Days of sales outstanding (DSO) | days | 70.84 | 51.52 | 37.02 | 48.00 | 47.11 |
| Number of days of payables | days | 12.55 | 22.83 | 34.57 | 70.25 | 62.03 |
Celsius Holdings Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its payables.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a significant increase from 96.30 days in 2020 to 375.04 days in 2021, indicating that the company held inventory for a longer period in 2021.
- There was a decrease in DOH to 165.26 days in 2022, suggesting improved inventory management. However, it increased again in 2023 to 122.19 days before a significant drop to 39.88 days in 2024, indicating efficient inventory turnover.
2. Days of Sales Outstanding (DSO):
- The DSO remained relatively stable from 47.11 days in 2020 to 48.00 days in 2021, signaling consistent collection of receivables.
- In 2022, the DSO decreased to 37.02 days, showing improved efficiency in collecting payments. However, it increased in 2023 to 51.52 days and further to 70.84 days in 2024, indicating a potential delay in collecting receivables.
3. Number of Days of Payables:
- The trend in the number of days of payables shows an increase from 62.03 days in 2020 to 70.25 days in 2021, reflecting a longer time taken by the company to pay its suppliers.
- There was a significant decrease in the number of days of payables to 34.57 days in 2022, indicating a more efficient payables management process. This trend continued in 2023 with just 22.83 days and further decreased to 12.55 days in 2024, suggesting improved liquidity management.
Overall, analyzing these activity ratios, Celsius Holdings Inc appeared to have improved its inventory turnover and payables management efficiency over the years, with some fluctuations in receivables collection efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 25.05 | 53.00 | 64.17 | 98.83 | 225.78 |
| Total asset turnover | 0.79 | 0.86 | 0.53 | 1.00 | 1.00 |
The Fixed Asset Turnover ratio for Celsius Holdings Inc provides insight into how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets. From the data provided, we can observe that the Fixed Asset Turnover ratio has been steadily decreasing over the years, from 225.78 in 2020 to 25.05 in 2024. This downward trend suggests a decline in the efficiency of converting fixed assets into sales.
On the other hand, the Total Asset Turnover ratio reflects the company's ability to generate sales revenue in relation to its total assets. A higher ratio indicates more efficient asset utilization. In the case of Celsius Holdings Inc, the Total Asset Turnover ratio remained relatively stable at 1.00 in 2020 and 2021 before decreasing to 0.53 in 2022. The ratio then improved in 2023 to 0.86 but dropped slightly to 0.79 in 2024.
Overall, the declining trend in Fixed Asset Turnover and the fluctuating pattern of Total Asset Turnover ratios suggest a potential inefficiency in the utilization of assets by Celsius Holdings Inc in recent years. Further analysis is needed to understand the specific reasons behind these changes and to identify potential areas for improvement in the company's long-term asset management strategies.