Concentrix Corporation (CNXC)

Short-term

Turnover ratios

Concentrix Corporation's activity ratios provide insights into the efficiency of its operations.

1. Inventory Turnover: The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a specific period. Concentrix Corporation's inventory turnover for November 30, 2023, was 20.51. This suggests that the company is efficiently managing its inventory and quickly turning it into sales.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company collects payments from customers. Concentrix Corporation's receivables turnover ranged from 3.77 to 4.86 over the period from November 30, 2023, to August 31, 2024. A higher turnover indicates that the company is collecting receivables more frequently, which is positive for cash flow.

3. Payables Turnover: The payables turnover ratio assesses how quickly a company pays its suppliers. Concentrix Corporation's payables turnover varied from 18.63 to 38.65 from November 30, 2023, to February 28, 2025. A higher turnover ratio suggests that the company is paying its suppliers promptly, which may indicate good supplier relationships.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Concentrix Corporation's working capital turnover fluctuated between 2.46 and 10.16 from November 30, 2022, to November 30, 2023. A higher ratio indicates that the company is effectively using its working capital to support its operations and generate revenue.

Overall, based on these activity ratios, Concentrix Corporation appears to be effectively managing its inventory, receivables, payables, and working capital to drive operational efficiency and support its business operations.

---

Average number of days

Concentrix Corporation's activity ratios reflect its efficiency in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): The company's inventory turnover has improved gradually over time. As of November 30, 2023, Concentrix had an average of 17.79 days of inventory on hand. This suggests that the company is selling its inventory more quickly compared to previous periods, which can be a positive indicator of effective inventory management.

2. Days of Sales Outstanding (DSO): Concentrix's days of sales outstanding have fluctuated but remained within a reasonable range. As of February 28, 2025, the company had an average of 77.06 days of sales outstanding. A lower DSO indicates that Concentrix is collecting its accounts receivable more efficiently, which can improve cash flow and overall liquidity.

3. Number of Days of Payables: Concentrix's payables turnover has shown some variability but generally decreased over time. As of February 28, 2025, the company had an average of 9.44 days of payables outstanding. A lower number of days of payables indicates that Concentrix is paying its suppliers more quickly, which can sometimes strain cash flow but may also reflect good relationships with suppliers.

Overall, Concentrix Corporation's activity ratios show improvements in inventory turnover and efficient management of receivables, but a trend towards quicker payment of payables. These metrics can provide insights into the company's operational efficiency and working capital management strategies.

---

Long-term

Concentrix Corporation's Fixed Asset Turnover Ratio has shown a generally increasing trend from November 2021 to August 2024, indicating that the company is generating more revenue per dollar invested in fixed assets over time. The ratio peaked at 16.41 in May 2023, suggesting efficient utilization of fixed assets to generate sales. However, there was a slight decline in the ratio to 14.08 by February 2025, which could indicate either a decrease in revenue generated from fixed assets or an increase in the book value of fixed assets.

On the other hand, the Total Asset Turnover Ratio experienced fluctuations over the same period. The ratio declined from 1.11 in November 2021 to 0.57 in November 2023, indicating a decrease in the efficiency of utilizing total assets to generate revenue. This could be a sign of potential operational inefficiencies or changes in asset composition. The ratio improved slightly to 0.80 by February 2025, suggesting a better utilization of assets to generate sales compared to the previous periods.

Overall, while Concentrix Corporation has shown improvements in its fixed asset turnover efficiency, it needs to focus on optimizing its total asset turnover to ensure better overall asset utilization and revenue generation.