Concentrix Corporation (CNXC)

Short-term

Turnover ratios

Concentrix Corporation's activity ratios reveal key insights into its operational efficiency and management of working capital.

1. Inventory Turnover: The inventory turnover ratio for Concentrix Corporation improved significantly from 20.51 in November 2023 to an unknown value in November 2024. This increase indicates that the company is selling its inventory more frequently during the year, which can help prevent inventory obsolescence and reduce holding costs.

2. Receivables Turnover: The receivables turnover for Concentrix Corporation is not provided for the years 2020 to 2024. This lack of data may limit our ability to assess how quickly the company collects its accounts receivable, which is crucial for maintaining healthy cash flows.

3. Payables Turnover: The payables turnover data is not available for the years 2020 to 2024. Understanding this ratio is important as it gives insights into how efficiently the company is managing its accounts payable, which can affect its liquidity and relationships with suppliers.

4. Working Capital Turnover: Concentrix Corporation's working capital turnover ranged from 9.07 to 11.36 over the period from 2020 to 2024. A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to generate sales revenue. The increase in this ratio from 2023 to 2024 indicates an improvement in the company's ability to generate sales from its working capital.

In conclusion, while Concentrix Corporation shows a positive trend in its inventory turnover and working capital turnover ratios, the lack of data for receivables and payables turnovers limits a comprehensive analysis of the company's overall efficiency in managing its operating cycle.

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Average number of days

Concentrix Corporation's activity ratios provide insights into how efficiently the company is managing its inventory, receivables, and payables.

- Days of inventory on hand (DOH) for November 30, 2023, stood at 17.79 days, indicating that on average, it takes the company approximately 17.79 days to sell its inventory. This decrease in DOH from previous periods could suggest an improvement in inventory management efficiency or possibly a change in the company's sales strategy.

- Days of sales outstanding (DSO) data is unavailable for all periods, implying that there is no information provided on the average number of days it takes for Concentrix to collect payment from its customers. This may make it challenging to assess the company's accounts receivable management effectiveness.

- Number of days of payables is not disclosed for any of the periods, leaving us unable to evaluate how long Concentrix takes to pay its suppliers. Understanding this metric is crucial as it can provide insights into the company's relationship with its vendors and its cash flow management practices.

Overall, without complete data on DSO and number of days of payables, it is challenging to comprehensively analyze Concentrix Corporation's activity ratios and assess its overall efficiency in managing working capital and operations.

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Long-term

Concentrix Corporation's fixed asset turnover ratio has shown a significant improvement over the years, increasing from 4.93 in November 2020 to 15.66 in November 2022. This indicates that the company has been able to generate more revenue from its fixed assets, such as property, plant, and equipment, which is a positive sign of operational efficiency.

On the other hand, the total asset turnover ratio peaked at 1.11 in November 2021 but has since fluctuated, reaching 0.80 in November 2024. This suggests that Concentrix's ability to generate revenue from all its assets has been somewhat inconsistent. The decline in total asset turnover from 2021 to 2024 indicates that the company may be experiencing challenges in effectively utilizing its total assets to generate sales.

Overall, while Concentrix has displayed a strong improvement in its fixed asset turnover, the fluctuations in total asset turnover suggest a need for the company to focus on optimizing the utilization of all its assets to drive revenue generation more consistently.