Celsius Holdings Inc (CELH)
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 | 2.99 | 3.03 | 3.42 | 2.91 | 2.21 | 2.25 | 1.81 | 1.28 | 0.97 | 1.16 | 1.63 | 2.28 | 3.79 | 4.18 | 2.47 | 2.39 | 2.87 | 4.44 | 3.49 | 2.44 |
| Receivables turnover | 7.09 | 5.26 | 4.73 | 4.44 | 9.86 | 4.84 | 7.03 | 5.06 | 7.60 | 5.34 | 5.37 | 5.76 | 7.75 | 6.49 | 7.36 | 7.49 | 8.39 | 4.33 | 4.63 | 4.11 |
| Payables turnover | 15.99 | — | — | 27.17 | 10.56 | 12.55 | 11.65 | 4.67 | 5.20 | 3.45 | 5.32 | 4.54 | 5.88 | — | 6.60 | 4.50 | 4.32 | 7.63 | 8.67 | 5.74 |
| Working capital turnover | 1.42 | 1.31 | 1.19 | 0.97 | 0.86 | 0.77 | 2.46 | 2.13 | 1.86 | 1.54 | 1.24 | 2.07 | 1.96 | 1.92 | 3.23 | 3.24 | 3.03 | 1.74 | 2.67 | 2.35 |
Celsius Holdings Inc's activity ratios provide insights into the efficiency of the company's management of its assets and liabilities.
1. Inventory turnover: The company's inventory turnover has been relatively stable over the quarters, indicating that Celsius is effectively managing its inventory levels. A higher turnover ratio suggests that inventory is selling quickly, which is positive for the company's cash flow and profitability.
2. Receivables turnover: The receivables turnover ratio measures how quickly the company collects payment from its customers. The fluctuation in this ratio indicates varying efficiency in collecting receivables. The significant decrease in Q3 2022 compared to other quarters may indicate potential issues with credit policies or the quality of customers.
3. Payables turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. The fluctuating trend in this ratio shows changes in the company's payment practices. A higher turnover ratio could suggest that the company is managing payables efficiently, possibly benefiting from early payment discounts.
4. Working capital turnover: This ratio indicates how well the company is utilizing its working capital to generate sales. The trend shows an increasing efficiency in recent quarters, implying that Celsius is generating more sales relative to its working capital. This could signal effective management of current assets and liabilities to support operations.
Overall, analyzing activity ratios can help investors and stakeholders assess the company's operational efficiency and financial health in managing its assets and liabilities.
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 | 122.19 | 120.35 | 106.76 | 125.32 | 165.26 | 162.21 | 201.28 | 284.55 | 375.04 | 314.98 | 224.39 | 160.26 | 96.31 | 87.32 | 147.88 | 152.77 | 127.30 | 82.12 | 104.59 | 149.89 |
| Days of sales outstanding (DSO) | days | 51.52 | 69.45 | 77.11 | 82.16 | 37.02 | 75.46 | 51.96 | 72.10 | 48.00 | 68.41 | 67.99 | 63.41 | 47.11 | 56.27 | 49.60 | 48.72 | 43.50 | 84.20 | 78.81 | 88.74 |
| Number of days of payables | days | 22.83 | — | — | 13.43 | 34.57 | 29.08 | 31.33 | 78.12 | 70.25 | 105.84 | 68.59 | 80.45 | 62.03 | — | 55.31 | 81.11 | 84.58 | 47.84 | 42.11 | 63.57 |
The analysis of Celsius Holdings Inc's activity ratios reveals insights into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH): The trend in DOH indicates an improvement in inventory management efficiency over the quarters, with a significant decrease from 284.55 days in Q1 2022 to 122.19 days in Q4 2023. This suggests that the company is managing its inventory levels more effectively, potentially reducing storage costs and minimizing obsolete inventory risks.
2. Days of Sales Outstanding (DSO): The DSO ratio reflects the average number of days it takes for the company to collect its accounts receivable. A lower DSO is typically favorable as it signifies quicker collection of cash. Celsius Holdings Inc exhibited fluctuations in DSO over the quarters, with the lowest DSO of 35.36 days in Q4 2022 and the highest of 80.49 days in Q1 2023. Management should aim to minimize DSO to expedite cash inflows and improve liquidity.
3. Number of Days of Payables: The days of payables metric represents the average number of days it takes the company to pay its suppliers. A longer period indicates the company is taking more time to settle its payables, potentially preserving cash. Celsius Holdings Inc experienced variations in payables days, with the lowest of 13.43 days in Q1 2023 and the highest of 78.12 days in Q1 2022. It is essential for the company to strike a balance between effectively managing payables without damaging supplier relationships.
Overall, Celsius Holdings Inc's activity ratios illustrate improvements in inventory management efficiency and fluctuations in accounts receivable and accounts payable management. Continuous monitoring and optimization of these ratios are crucial for enhancing operational effectiveness and financial health.
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 | 53.00 | 54.53 | 59.91 | 64.72 | 64.17 | 100.29 | 94.76 | 107.41 | 98.83 | 100.07 | 116.02 | 130.52 | 225.78 | 255.19 | 258.19 | 772.57 | 565.02 | 509.40 | 562.30 | 534.26 |
| Total asset turnover | 0.86 | 0.74 | 0.68 | 0.60 | 0.53 | 0.44 | 1.39 | 1.16 | 1.00 | 0.83 | 0.78 | 1.03 | 1.00 | 0.93 | 1.04 | 0.94 | 0.83 | 0.88 | 1.42 | 1.25 |
Celsius Holdings Inc's long-term activity ratios indicate the efficiency of the company in managing its assets to generate sales.
The fixed asset turnover ratio has shown a decreasing trend over the past eight quarters, starting at 107.41 in Q1 2022 and decreasing to 53.00 in Q4 2023. This suggests that the company's fixed assets are being utilized less efficiently to generate sales. It is important for the company to closely monitor and improve the utilization of its fixed assets to enhance productivity and profitability.
On the other hand, the total asset turnover ratio has fluctuated throughout the quarters, ranging from 0.44 in Q3 2022 to 1.39 in Q2 2022. This ratio indicates the efficiency of the company in generating sales from all its assets. While the ratio has shown volatility, it is essential for Celsius Holdings Inc to strive for consistency and improvement in utilizing its total assets to maximize sales and profitability.
Overall, the company should focus on optimizing its asset utilization to enhance operational efficiency and ultimately drive financial performance in the long term. Tracking these ratios over time will help Celsius Holdings Inc assess its performance and make informed strategic decisions to improve efficiency.