Cencora Inc. (COR)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 14.51 | 14.80 | 13.47 | 14.67 | 15.77 |
| Receivables turnover | 12.49 | 12.81 | 11.64 | 13.25 | 14.50 |
| Payables turnover | 5.52 | 5.73 | 5.45 | 5.83 | 6.15 |
| Working capital turnover | — | — | — | — | — |
Based on the provided data, the activity ratios of Cencora Inc. can be analyzed as follows:
1. Inventory turnover:
The inventory turnover ratio measures how efficiently the company manages its inventory. Cencora Inc. has shown a consistent high inventory turnover over the past three years, with a slight decrease from 14.80 in 2022 to 14.51 in 2023. This indicates that the company is effectively selling and replenishing its inventory.
2. Receivables turnover:
The receivables turnover ratio indicates how well the company is managing its receivables and collecting on credit sales. Cencora Inc. has demonstrated a consistent and strong performance in collecting its receivables, with a slight decrease from 12.81 in 2022 to 12.49 in 2023. This suggests efficient management of credit sales and timely collection of receivables.
3. Payables turnover:
The payables turnover ratio measures how efficiently the company is managing its payments to suppliers. Cencora Inc. has maintained a stable payables turnover ratio over the years, with a slight decrease from 5.73 in 2022 to 5.52 in 2023. This indicates the company's consistent payment management to suppliers.
4. Working capital turnover:
The table does not provide data for the working capital turnover ratio, and thus, an analysis of this specific ratio cannot be carried out.
In summary, Cencora Inc. has exhibited strong activity ratios across inventory turnover, receivables turnover, and payables turnover, indicating efficient management of inventory, receivables, and payables. However, the absence of data for the working capital turnover ratio limits the comprehensive analysis of the company's overall activity efficiency.
Average number of days
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 25.16 | 24.66 | 27.09 | 24.88 | 23.14 |
| Days of sales outstanding (DSO) | days | 29.22 | 28.49 | 31.37 | 27.55 | 25.18 |
| Number of days of payables | days | 66.07 | 63.70 | 67.01 | 62.65 | 59.39 |
Based on the provided data, Cencora Inc.'s activity ratios can be analyzed as follows:
Days of Inventory on Hand (DOH): This ratio measures the average number of days it takes for the company to sell its inventory. Over the past four years, Cencora Inc.'s DOH has ranged from 24.66 days to 27.09 days, indicating that the company has been able to efficiently manage its inventory levels.
Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect its accounts receivable. Cencora Inc.'s DSO has decreased from 36.67 days in 2020 to 29.22 days in 2023, suggesting an improvement in the company's collection process and a shorter cash conversion cycle.
Number of Days of Payables: This ratio represents the average number of days it takes for the company to pay its suppliers. Cencora Inc.'s number of days of payables has fluctuated between 63.70 days and 67.01 days over the past three years, implying that the company has been consistent in managing its payment terms to suppliers.
Overall, Cencora Inc. has shown efficient management of its inventory, improving collection of accounts receivable, and consistent management of its payment terms to suppliers over the analyzed period.
Long-term
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 122.79 | 111.75 | 98.93 | 127.89 | 101.43 |
| Total asset turnover | 4.19 | 4.22 | 3.73 | 4.29 | 4.58 |
The long-term activity ratios of Cencora Inc. provide valuable insights into the company's utilization of fixed and total assets to generate sales. The fixed asset turnover ratio has shown a consistently increasing trend over the years, indicating that the company is effectively utilizing its fixed assets to generate sales. In particular, the significant increase from 2020 to 2021 and then to 2022 suggests a substantial improvement in fixed asset utilization.
Conversely, the total asset turnover ratio has fluctuated slightly over the years but has generally remained within a relatively stable range. This ratio indicates the company's overall efficiency in generating sales from all of its assets, including both fixed and current assets. The slight fluctuations in this ratio may be attributed to changes in the company's asset base and its sales performance.
Overall, the upward trend in the fixed asset turnover ratio, coupled with the relatively stable total asset turnover ratio, indicates that Cencora Inc. has been effectively utilizing its assets to drive sales growth and improve operational efficiency over the years.