Cohu Inc (COHU)

Short-term

Turnover ratios

Inventory turnover: Cohu Inc's inventory turnover has been gradually decreasing from 4.21 in 2019 to 3.24 in 2023. This indicates that the company is taking longer to sell its inventory. A lower inventory turnover may suggest inefficiencies in managing inventory levels or slower sales.

Receivables turnover: Unfortunately, data for receivables turnover is not provided, which limits our ability to assess how quickly the company collects payments from its customers. A higher receivables turnover ratio would indicate better credit control and efficient management of accounts receivable.

Payables turnover: Cohu Inc's payables turnover has shown an increasing trend from 11.31 in 2019 to 15.02 in 2023. This suggests that the company is taking longer to pay its suppliers, which may indicate a solid bargaining position with suppliers or potential liquidity concerns.

Working capital turnover: The working capital turnover ratio has been declining over the years from 2.01 in 2020 to 1.17 in 2023. A decreasing trend in this ratio may imply that the company is becoming less efficient in generating sales revenue from its working capital. This could be a cause for concern as it may indicate decreased operational efficiency or declining sales relative to the capital invested in the business.

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Average number of days

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory by showing the number of days it takes to sell its current inventory. Cohu Inc's DOH has shown a fluctuating trend over the past five years, ranging from 86.66 days in 2019 to 112.70 days in 2023. An increasing trend in DOH could indicate overstocking or slow-moving inventory, while a decreasing trend could signify better inventory management.

Days of sales outstanding (DSO) measures how quickly a company collects payments from its customers. Unfortunately, the data provided does not include DSO figures for Cohu Inc. A lower DSO is generally preferable as it indicates faster collection of receivables, leading to improved cash flow and liquidity.

The number of days of payables indicates how long it takes for a company to pay its suppliers. Cohu Inc's payables days have varied from 32.29 days in 2019 to 46.81 days in 2021, with a current figure of 24.31 days in 2023. A decreasing trend in payables days could signal improved relationships with suppliers or potential liquidity issues.

In summary, Cohu Inc has shown varying trends in its activity ratios over the past five years. The company should continue monitoring and managing its inventory levels, receivables collection, and payables payment to ensure efficient operations and optimal cash flow management.

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Long-term

Cohu Inc's long-term activity ratios provide insights into how effectively the company utilizes its assets to generate revenue over multiple years. The fixed asset turnover ratio has shown fluctuations over the five-year period, with a significant increase from 2019 to 2021, followed by a slight decrease in 2023. This ratio indicates that Cohu Inc generated $9.08 of revenue for every dollar invested in fixed assets in 2023.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all its assets. Cohu Inc's total asset turnover has demonstrated a similar fluctuating trend, with a notable increase from 2019 to 2021, followed by a drop in 2023. In 2023, the company generated $0.55 in revenue for every dollar of total assets invested.

Overall, Cohu Inc's long-term activity ratios suggest that the company has been relatively efficient in utilizing its fixed assets to generate revenue, although there is room for improvement in terms of generating sales from its total assets. The fluctuations in these ratios indicate changes in the company's operational efficiency and asset utilization strategies over the years. Further analysis and comparison with industry benchmarks may provide valuable insights into Cohu Inc's performance and potential areas for enhancement in the future.