Cognex Corporation (CGNX)

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 3.05 7.02 7.41 7.45 8.58 5.57 6.61 4.55 5.20 5.38 5.81 6.51 6.32 9.35 9.28 8.43 6.61 6.09 5.63 5.20
Receivables turnover 7.08 6.60 5.94 — 7.87 — — — 7.70 — — — — — — — — — — —
Payables turnover 23.05 40.76 35.84 35.17 38.76 27.19 31.15 13.89 13.36 16.28 12.31 19.07 23.61 23.47 27.32 28.62 22.28 31.15 34.97 20.06
Working capital turnover 1.56 1.29 1.66 1.82 1.89 1.61 2.00 2.26 2.29 2.00 2.02 1.90 1.73 1.55 1.37 1.61 1.49 1.37 1.74 1.53

Cognex Corp.'s activity ratios provide insight into how efficiently the company is managing its assets and operating cycle over the past eight quarters.

1. Inventory Turnover: The inventory turnover ratio has shown a declining trend from Q4 2022 to Q4 2023, indicating that Cognex is holding onto its inventory for a longer period. This may suggest potential issues with inventory management or slowing sales turnover.

2. Receivables Turnover: The receivables turnover ratio fluctuated over the quarters but generally remained stable. A higher turnover ratio indicates that Cognex is collecting its accounts receivable more efficiently. However, the ratio decreased in Q3 and Q4 2023, warranting a closer look at the company's credit policies and collection procedures.

3. Payables Turnover: The payables turnover ratio follows a decreasing trend over the quarters. A lower turnover ratio may suggest that Cognex is taking longer to pay its suppliers, which could impact vendor relationships. It is essential to monitor this trend to ensure it doesn't lead to strained supplier relations.

4. Working Capital Turnover: The working capital turnover ratio also displays fluctuations but generally remained above 1.5. A higher turnover ratio indicates efficient use of working capital to generate sales. The slight decreasing trend in Q3 and Q4 2023 may require investigation to assess if Cognex is effectively utilizing its working capital.

Overall, while the activity ratios provide valuable insights into how Cognex is managing its assets and operating cycle, further analysis is required to understand the underlying reasons for the trends observed and to make informed decisions regarding operational efficiency and financial performance.

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 119.76 52.00 49.24 48.98 42.55 65.57 55.25 80.26 70.15 67.89 62.86 56.04 57.79 39.03 39.31 43.30 55.26 59.91 64.86 70.19
Days of sales outstanding (DSO) days 51.58 55.31 61.44 — 46.38 — — — 47.38 — — — — — — — — — — —
Number of days of payables days 15.83 8.95 10.19 10.38 9.42 13.42 11.72 26.27 27.32 22.41 29.64 19.14 15.46 15.55 13.36 12.75 16.38 11.72 10.44 18.19

Cognex Corp.'s activity ratios provide insights into the management of its inventory, accounts receivable, and accounts payable over the past eight quarters.

- Days of Inventory on Hand (DOH) have shown an increasing trend over the quarters, indicating that the company is holding inventory for a longer period. This may suggest inefficiencies in managing inventory levels or potential challenges in forecasting demand accurately.

- Days of Sales Outstanding (DSO) have fluctuated over the quarters, with some quarters showing an increase in the average collection period for accounts receivable. This could imply potential issues with credit policies or collections procedures impacting the cash conversion cycle.

- The number of Days of Payables indicates that Cognex Corp. has been taking longer to pay its suppliers in the recent quarters compared to earlier periods. This may signal strained vendor relationships or deliberate efforts to manage cash flows by delaying payments.

Overall, analyzing these activity ratios collectively can provide a holistic view of Cognex Corp.'s operational efficiency and liquidity management. Further investigation into the underlying reasons for these trends would be beneficial to assess the company's effectiveness in managing working capital and optimizing cash flows.

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 7.79 10.51 10.92 11.36 12.60 12.67 13.63 13.85 13.34 13.19 12.78 11.47 10.24 9.32 8.17 8.25 8.10 8.46 11.53 11.42
Total asset turnover 0.41 0.44 0.45 0.47 0.51 0.53 0.56 0.56 0.52 0.50 0.49 0.46 0.45 0.37 0.35 0.38 0.38 0.54 0.76 0.77

The fixed asset turnover ratio of Cognex Corp. has been consistently high over the quarters, showing a decreasing trend from 12.62 in Q4 2022 to 7.91 in Q4 2023. This indicates that the company has been efficiently utilizing its fixed assets to generate sales, although there has been a recent decline in efficiency.

On the other hand, the total asset turnover ratio has also exhibited a downward trend from 0.51 in Q4 2022 to 0.42 in Q4 2023. This suggests that the company's overall ability to generate sales from all its assets has decreased over time.

Overall, the long-term activity ratios of Cognex Corp. show lower turnover efficiency as time progresses, both in terms of fixed assets and total assets. This could indicate potential inefficiencies in asset utilization and may warrant further investigation into the company's operational performance.