Cencora Inc. (COR)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 14.06 14.51 14.58 14.10 13.91 14.80 14.41 14.27 13.11 13.47 13.21 14.72 14.35 14.67 15.30 16.31 15.14 15.77 15.32 14.96
Receivables turnover 12.57 12.49 12.21 12.68 12.92 12.81 12.60 12.59 12.76 11.64 11.38 13.57 12.80 13.25 14.17 12.49 14.49 14.50 14.78 14.33
Payables turnover 5.49 5.52 5.62 5.59 5.59 5.73 5.80 5.79 5.53 5.45 5.43 6.07 5.65 5.83 6.22 5.90 6.07 6.15 6.19 6.04
Working capital turnover — — — — — — — — — — — 79.38 — — — — — — — —

The activity ratios of Cencora Inc. provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
Cencora Inc.'s inventory turnover ratio has been relatively stable over the past 8 quarters, averaging around 14. This indicates that, on average, the company has been able to sell and replace its inventory approximately 14 times a year. A high inventory turnover ratio is generally indicative of efficient inventory management, as it suggests that the company has been able to sell goods quickly and restock inventory effectively.

2. Receivables Turnover:
The receivables turnover ratio for Cencora Inc. has remained consistent, hovering around 12 to 13 over the past 2 years. This implies that the firm collects its accounts receivable approximately 12 to 13 times a year. A stable and relatively high receivables turnover ratio suggests that the company has been successful in managing its credit sales and collecting on outstanding invoices promptly.

3. Payables Turnover:
Cencora Inc.'s payables turnover ratio has been steady at around 5 to 6 over the last 8 quarters. This indicates that the company has been maintaining consistent payment cycles to its suppliers. A relatively high payables turnover ratio reflects efficient credit utilization and working capital management, demonstrating the company's ability to meet its short-term obligations promptly.

4. Working Capital Turnover:
The data provided does not include the working capital turnover for Cencora Inc., as indicated by the absence of values in the corresponding column. This makes it challenging to assess the company's efficiency in generating sales relative to its working capital.

Overall, Cencora Inc.'s activity ratios suggest that the company has been effectively managing its inventory, receivables, and payables, indicating efficient operational performance and effective working capital management.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 25.96 25.16 25.03 25.88 26.24 24.66 25.34 25.58 27.85 27.09 27.63 24.79 25.43 24.88 23.86 22.37 24.10 23.14 23.83 24.39
Days of sales outstanding (DSO) days 29.03 29.22 29.89 28.79 28.25 28.49 28.96 29.00 28.61 31.37 32.06 26.90 28.53 27.55 25.75 29.23 25.20 25.18 24.69 25.47
Number of days of payables days 66.44 66.07 64.99 65.24 65.30 63.70 62.94 62.99 66.01 67.01 67.26 60.13 64.55 62.65 58.69 61.91 60.18 59.39 58.92 60.46

Days of Inventory on Hand (DOH) measures how many days it takes for Cencora Inc. to sell its entire inventory. Over the eight quarters, DOH fluctuated between 24.66 days and 26.24 days, indicating slight variability in the efficiency of inventory management. Overall, the company has maintained its inventory levels quite steadily.

Days of Sales Outstanding (DSO) represents the average number of days it takes for Cencora Inc. to collect payment after making a sale. The DSO ranged from 28.25 days to 29.89 days, again demonstrating relatively consistent performance in collecting receivables.

The Number of Days of Payables shows the average number of days Cencora Inc. takes to pay its suppliers. This metric remained fairly stable, varying between 62.94 days and 66.44 days. Though there was some fluctuation, it suggests that the company has been able to manage its payable days effectively.

Overall, Cencora Inc. has generally maintained consistent activity ratios over the quarters, indicating stable efficiency in managing inventory, collecting receivables, and paying suppliers.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 128.27 122.79 118.45 115.14 113.00 111.75 112.28 107.39 103.82 98.93 95.34 132.38 131.71 127.89 128.03 130.93 126.22 101.43 100.29 94.22
Total asset turnover 4.20 4.19 4.16 4.21 4.18 4.22 4.13 4.01 3.84 3.73 3.65 4.18 4.24 4.29 4.57 4.43 4.55 4.58 4.61 4.51

The long-term activity ratios of Cencora Inc. can provide valuable insights into the company's management of its fixed and total assets over time.

The fixed asset turnover ratio reflects the efficiency of Cencora Inc. in generating sales from its investments in fixed assets. The ratio has been consistently high, ranging from 107.39 to 128.27 over the past eight quarters. This indicates that the company has been effective in utilizing its fixed assets to generate sales, with a slight increasing trend in recent periods. This could be a positive sign of improved operational efficiency and effectiveness in utilizing its long-term assets.

On the other hand, the total asset turnover ratio measures the company's ability to generate sales revenue from its total assets. It has also remained relatively stable, fluctuating between 4.01 and 4.22. This indicates that Cencora Inc. has maintained a consistent level of efficiency in generating sales from its total assets over the period under consideration.

Overall, the company's long-term activity ratios suggest that it has been effectively utilizing its fixed and total assets to generate sales, with a slightly improving trend in fixed asset turnover. However, further analysis in conjunction with other financial metrics is recommended to gain a comprehensive understanding of the company's long-term asset management.