Cencora Inc. (COR)

Short-term

Turnover ratios

Cencora Inc.'s activity ratios show a consistent trend over the past few quarters.

1. Inventory turnover has remained relatively stable, ranging from 13.11 to 16.31 times during the periods analyzed. This indicates that the company is efficiently managing its inventory levels, with a higher turnover implying faster sales of inventory.

2. Receivables turnover has also shown consistency, with values fluctuating between 11.38 and 14.49 times. This suggests that the company efficiently collects payments from its customers, with a higher turnover indicating a quicker conversion of receivables into cash.

3. Payables turnover has exhibited a similar pattern, varying between 5.43 and 6.22 times. This indicates that Cencora Inc. effectively manages its payables, with a higher turnover reflecting a quicker repayment of trade payables.

4. The working capital turnover ratio is not available for analysis as the data is missing for the periods provided. This ratio would typically indicate how efficiently the company generates revenue from its working capital.

Overall, Cencora Inc. appears to have efficient operational processes in place, as evidenced by stable and satisfactory activity ratios for inventory turnover, receivables turnover, and payables turnover. This consistency suggests that the company is effectively managing its resources and operating efficiently.

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Average number of days

Cencora Inc.'s activity ratios provide insight into the efficiency of its operations and management of working capital.

1. Days of Inventory on Hand (DOH): The company's average days of inventory on hand have ranged from 22.37 days to 27.85 days over the past five quarters. A lower DOH indicates better inventory management and faster turnover, which can lead to lower carrying costs and improved cash flow. Cencora's DOH has remained relatively stable around the mid-20s range, suggesting consistent inventory management practices.

2. Days of Sales Outstanding (DSO): Cencora's DSO has fluctuated between 25.20 days and 32.06 days during the same period. A lower DSO reflects quicker collection of accounts receivable and efficient credit management. The company has shown variability in its DSO, with some quarters indicating better management of receivables than others, potentially impacting cash flows and liquidity.

3. Number of Days of Payables: Cencora's days of payables have ranged from 58.69 days to 67.26 days across the observed quarters. A higher number of days of payables indicates a company taking longer to pay its suppliers, potentially benefiting from improved cash flow and liquidity. Cencora has maintained its payables days within a relatively tight range, suggesting a balanced approach to managing supplier payments.

Overall, Cencora Inc. should focus on optimizing its days of sales outstanding to accelerate cash collection and maintain consistent inventory turnover to enhance operational efficiency and working capital management.

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Long-term

The long-term activity ratios of Cencora Inc. show the company's efficiency in utilizing its fixed assets and total assets to generate sales revenue.

1. Fixed Asset Turnover: The fixed asset turnover ratio demonstrates how effectively the company is using its fixed assets to generate sales. Cencora Inc. has maintained a consistently high fixed asset turnover ratio over the analyzed periods, ranging from 95.34 to 136.40. This indicates that the company has been able to generate substantial sales relative to its investment in fixed assets. The trend suggests an improvement in the utilization of fixed assets over time.

2. Total Asset Turnover: The total asset turnover ratio measures how efficiently the company is using all its assets to generate revenue. Cencora Inc. has maintained a relatively stable total asset turnover ratio, fluctuating between 3.65 and 4.57. This implies that the company has been able to generate revenue in relation to its total asset base. The slight fluctuations in the ratio over time may indicate changing business conditions or asset utilization efficiency.

Overall, the high fixed asset turnover and stable total asset turnover ratios suggest that Cencora Inc. has been effectively managing its assets to drive sales growth and optimize operational performance. The company's ability to maintain these ratios at satisfactory levels indicates sound asset management and operational efficiency.