Celsius Holdings Inc (CELH)

Short-term

Turnover ratios

Inventory Turnover Ratio Analysis:

- The inventory turnover ratio of Celsius Holdings Inc has been fluctuating over the quarters, ranging from a low of 0.97 to a high of 9.15.
- Generally, a higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels.
- The company experienced a significant increase in inventory turnover in December 2024 compared to the previous quarters, which may suggest improved inventory management or increased sales.

Receivables Turnover Ratio Analysis:

- The receivables turnover ratio of Celsius Holdings Inc has also shown fluctuations, varying from 4.44 to 9.86.
- A higher receivables turnover ratio is favorable as it indicates that the company is collecting payments from customers quickly.
- The company experienced a peak in receivables turnover in December 2022, which suggests efficient credit management or a decrease in credit sales.

Payables Turnover Ratio Analysis:

- The payables turnover ratio of Celsius Holdings Inc has shown an increasing trend over the quarters, with some quarters showing no data ("-").
- An increasing payables turnover ratio may indicate that the company is paying its suppliers more quickly.
- The substantial increase in payables turnover in December 2024 may indicate more efficient management of supplier payments or tighter credit terms with suppliers.

Working Capital Turnover Ratio Analysis:

- The working capital turnover ratio of Celsius Holdings Inc has fluctuated between 0.77 and 3.24.
- A higher working capital turnover ratio indicates that the company is generating more revenue for each dollar of working capital invested.
- The ratio has shown a decreasing trend since June 2022, which may suggest a decrease in revenue generation efficiency relative to working capital utilization.

Overall, analyzing these activity ratios provides insights into how efficiently Celsius Holdings Inc is managing its inventory, receivables, payables, and working capital to support its operational activities.

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Average number of days

Based on the provided data, we can analyze the activity ratios for Celsius Holdings Inc:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have fluctuated over the periods but generally show a decreasing trend from a high of 375.04 days on December 31, 2021, to a low of 39.88 days on December 31, 2024. A lower value indicates that the company is managing its inventory more efficiently and selling products more quickly.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding also exhibit variations, with a peak of 82.16 days on March 31, 2023, and a low of 37.02 days on December 31, 2022. A lower DSO suggests that the company is collecting its accounts receivable faster, which is favorable for cash flow.

3. Number of Days of Payables:
- The number of days of payables has shown fluctuations as well, with a range of values indicating the time it takes the company to pay its suppliers. The trend appears to be decreasing over the periods, from 105.84 days on September 30, 2021, to 12.55 days on December 31, 2024. A lower number of days of payables may suggest improved liquidity but could also indicate potential issues related to payment terms with suppliers.

Overall, the analysis of these activity ratios provides insights into how efficiently Celsius Holdings Inc manages its inventory, collects receivables, and handles payables. The trends observed can help stakeholders assess the company's operational efficiency and working capital management.

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Long-term

Celsius Holdings Inc's Fixed Asset Turnover ratio has exhibited a declining trend from March 31, 2020, to December 31, 2024. The ratio started at a high of 772.57 in March 2020 but steadily decreased to 24.50 by December 31, 2024. This decreasing trend indicates that the company's ability to generate sales from its fixed assets has weakened over time.

On the other hand, the Total Asset Turnover ratio has shown a more fluctuating pattern over the same period. The ratio ranged from 0.44 on September 30, 2022, to 1.39 on June 30, 2022. This variability suggests varying levels of efficiency in utilizing all assets to generate sales revenue during the respective periods.

Overall, it is crucial for Celsius Holdings Inc to monitor and improve its asset turnover ratios to ensure optimal utilization of its assets in generating revenue and maintaining profitability.