Concentrix Corporation (CNXC)

Short-term

Turnover ratios

Based on the provided data, Concentrix Corp.'s activity ratios can be analyzed as follows:

1. Inventory Turnover:
Unfortunately, the data for inventory turnover is unavailable. Without this information, it is difficult to assess Concentrix Corp.'s efficiency in managing its inventory.

2. Receivables Turnover:
Concentrix Corp.'s receivables turnover has experienced a gradual decline over the past five years, from 4.63 in 2019 to 3.77 in 2023. This suggests a decrease in the company's ability to collect its accounts receivable in a timely manner, potentially indicating issues with credit policies or customer payment behavior.

3. Payables Turnover:
The payables turnover for Concentrix Corp. has fluctuated over the past five years, with a peak of 27.97 in 2021 and a low of 18.63 in 2023. This could indicate changes in the company's payment practices with suppliers. Generally, a high payables turnover indicates that the company is paying its suppliers quickly, which could signify strong cash management practices.

4. Working Capital Turnover:
The data for working capital turnover in 2023 is not available. However, the trend shows a gradual decline in working capital turnover from 11.38 in 2019 to 9.07 in 2022, indicating that the company is less efficient in generating revenue from its working capital over time.

In conclusion, the available activity ratios suggest some potential concerns regarding Concentrix Corp.'s efficiency in managing receivables and working capital, while also indicating fluctuations in its payment practices with suppliers. However, a complete assessment of the company's activity ratios would require additional context and a more comprehensive set of data, particularly regarding inventory turnover.

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Average number of days

Based on the provided activity ratios for Concentrix Corp., we find that the days of sales outstanding (DSO) have gradually increased over the past five years, from 78.79 days in 2019 to 96.90 days in 2023. This suggests that the company is taking longer to collect its accounts receivable, which may indicate potential issues with its credit policy or the creditworthiness of its customers.

In contrast, the number of days of payables has fluctuated over the same period, peaking at 19.60 days in 2023 and reaching a low of 13.05 days in 2021. This variability might indicate changes in the company's payment terms with suppliers or its ability to manage its payables effectively.

However, the days of inventory on hand (DOH) data is not provided for analysis, which limits our ability to assess Concentrix Corp.'s efficiency in managing its inventory levels. Nevertheless, the information supplied demonstrates the company's trends in managing its accounts receivable and payables, providing insights into its working capital management and cash flow efficiency.

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Long-term

The long-term activity ratios of Concentrix Corp. provide insights into the efficiency of the company's utilization of its fixed assets and total assets over the specified years. The fixed asset turnover ratio indicates a decline over the five-year period, suggesting a reduction in the utilization of fixed assets to generate sales. This may be due to slower sales growth or an increase in fixed asset investments without proportional sales growth.

The total asset turnover ratio also demonstrates a downward trend, indicating a decrease in the efficiency of generating sales from the total assets. This suggests that the company may be experiencing challenges in effectively leveraging its total assets to generate revenue. It is important for Concentrix Corp. to assess the reasons behind these declines and explore strategies to optimize the utilization of both fixed and total assets in order to improve its long-term activity efficiency.