CONMED Corporation (CNMD)

Short-term

Turnover ratios

Conmed Corp.'s activity ratios provide insights into the efficiency of the company's management of inventory, receivables, payables, and working capital over multiple quarters.

1. Inventory turnover: Conmed Corp.'s inventory turnover has shown a slight increasing trend from Q1 2022 to Q4 2023, indicating that the company is managing its inventory more effectively. The ratio improved from 1.43 in Q4 2022 to 1.79 in Q4 2023, suggesting that Conmed is selling its inventory at a faster rate.

2. Receivables turnover: The receivables turnover ratio fluctuated slightly but remained relatively stable over the quarters. Although it dipped in Q3 2023 to 5.08, it rose to 5.14 in Q4 2023. This indicates that Conmed is collecting its accounts receivable in a timely manner.

3. Payables turnover: Conmed Corp.'s payables turnover ratio has also been relatively stable over the quarters, with a range between 6.17 and 6.74. This shows that the company is managing its accounts payable efficiently by paying its suppliers at a consistent rate.

4. Working capital turnover: The working capital turnover ratio for Conmed has shown an increasing trend, indicating that the company is using its working capital more efficiently to generate sales revenue. The ratio improved from 2.77 in Q2 2022 to 4.69 in Q3 2023, before decreasing slightly to 4.08 in Q4 2023. This suggests that Conmed is effectively utilizing its working capital to support its operations and drive business growth.

Overall, Conmed Corp. appears to be effectively managing its inventory, receivables, payables, and working capital, as reflected in its activity ratios across the quarters analyzed.

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Average number of days

Conmed Corp.'s activity ratios provide insight into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): Conmed Corp.'s DOH has been fluctuating over the quarters, ranging from 204.38 days to 255.78 days. A decreasing trend in DOH would indicate efficient management of inventory, while an increasing trend could suggest overstocking or slow-moving inventory. Overall, Conmed Corp. needs to focus on optimizing its inventory management to ensure that it doesn't tie up excessive capital in unsold inventory.

2. Days of Sales Outstanding (DSO): The DSO for Conmed Corp. has also shown variability, with figures ranging from 66.80 days to 73.46 days. A lower DSO indicates that the company is efficiently collecting payments from its customers, while a higher DSO could be a sign of potential issues with accounts receivable management. Conmed Corp. should aim to keep its DSO at a reasonable level to maintain healthy cash flow.

3. Number of Days of Payables: The number of days of payables for Conmed Corp. has remained relatively stable over the quarters, ranging from 54.16 days to 59.16 days. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which can sometimes indicate financial strain. However, it can also be a strategic move to manage cash flow. Conmed Corp. should monitor its payables closely to ensure timely payments while maintaining good relationships with suppliers.

In summary, Conmed Corp. should focus on improving inventory management, optimizing accounts receivable collection, and carefully managing payables to enhance its overall operational efficiency and financial performance.

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Long-term

Conmed Corp.'s long-term activity ratios provide insights into the efficiency of the company's utilization of its fixed and total assets over time.

1. Fixed Asset Turnover: This ratio measures how effectively the company generates revenue from its investment in fixed assets. A higher fixed asset turnover indicates that Conmed is generating more sales relative to its investment in property, plant, and equipment. The trend of the fixed asset turnover from Q1 2022 to Q4 2023 shows a gradual increase, with values ranging from 9.04 to 10.31. This improvement suggests that Conmed has been able to efficiently utilize its fixed assets to drive sales, which is a positive sign of operational efficiency.

2. Total Asset Turnover: Total asset turnover reflects the company's ability to generate sales in relation to its total assets. A higher total asset turnover indicates that Conmed is generating more revenue per dollar of assets. The trend of the total asset turnover from Q1 2022 to Q4 2023 shows slight fluctuations, with values ranging from 0.46 to 0.54. While the values fluctuate, the overall picture indicates that Conmed is effectively utilizing its total assets to generate sales, although there may be some variability in performance.

In conclusion, Conmed Corp. has shown improvement in its fixed asset turnover, indicating efficient utilization of its fixed assets to drive sales. The total asset turnover has shown some variability but generally suggests that the company is effectively generating revenue in relation to its total assets. Overall, these long-term activity ratios reflect positively on Conmed's operational efficiency and asset utilization.