CONMED Corporation (CNMD)

Short-term

Turnover ratios

CONMED Corporation's activity ratios provide insight into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. CONMED's inventory turnover has fluctuated over the years, ranging from 1.43 to 2.06. A decreasing trend from 2020 to 2024 indicates a potential issue with managing inventory levels efficiently.

2. Receivables Turnover:
- The receivables turnover ratio evaluates how effectively a company collects its receivables from customers. In this case, the data shows "—," indicating that information on receivables turnover is not available. It is essential for CONMED to track this metric to monitor its credit policies and collections performance.

3. Payables Turnover:
- The payables turnover ratio assesses how quickly a company pays its suppliers for goods or services received. Similar to receivables turnover, the data shows "—," suggesting that details on payables turnover are not provided. Managing payables effectively is crucial for optimizing cash flow and maintaining good relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. CONMED's working capital turnover has shown some fluctuation over the years, with values between 3.61 and 4.08. A high turnover ratio indicates that the company is effectively utilizing its working capital to drive sales.

In conclusion, CONMED Corporation should focus on improving inventory management to enhance efficiency, monitor receivables and payables turnover to ensure healthy cash flow management, and continue optimizing the utilization of working capital to support revenue generation.

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Average number of days

CONMED Corporation's activity ratios indicate the efficiency of the company in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): The trend in DOH shows an increase from 176.86 days in 2020 to 220.48 days in 2024. This indicates that CONMED is holding inventory for a longer period, which may lead to higher holding costs and the risk of obsolete inventory.

2. Days of Sales Outstanding (DSO): The data shows that DSO values are not available for the years provided, indicating a lack of information on how quickly CONMED is collecting payments from its customers. Without this information, it is challenging to assess the efficiency of the company in managing its receivables.

3. Number of Days of Payables: Similar to DSO, the data does not provide information on the number of days of payables for the years specified. This makes it difficult to evaluate how effectively CONMED is managing its payables and cash flow through payment terms with suppliers.

In conclusion, while the increasing trend in Days of Inventory on Hand suggests potential inefficiencies in inventory management, the absence of data for Days of Sales Outstanding and Days of Payables limits a comprehensive analysis of CONMED Corporation's overall activity ratios.

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Long-term

The fixed asset turnover ratio for CONMED Corporation has shown an improving trend over the years, with a notable increase from 7.74 in 2020 to 9.28 in 2021. However, in the subsequent years, the ratio slightly declined to 9.04 by the end of 2022. The lack of data for 2023 and 2024 prevents further analysis.

On the other hand, the total asset turnover ratio exhibited fluctuations during the period under review. It increased from 0.49 in 2020 to 0.57 in 2021, signaling a more effective utilization of assets to generate sales. However, in 2022, the ratio decreased to 0.46 before recovering to 0.54 in 2023 and returning to 0.57 by the end of 2024.

Overall, the fixed asset turnover suggests an efficient use of fixed assets in generating revenue, while the total asset turnover indicates fluctuations in the company's ability to generate sales relative to its total assets during the period under consideration.