Corsair Gaming Inc (CRSR)

Short-term

Turnover ratios

Based on the provided data for Corsair Gaming Inc's activity ratios:

1. Inventory Turnover: The inventory turnover ratio indicates how efficiently a company manages its inventory. Corsair Gaming's inventory turnover has fluctuated over the years but has generally been decreasing. In 2024, it reached 3.80, suggesting that the company's inventory is moving at a slower pace compared to previous years.

2. Receivables Turnover: No data is available for Corsair Gaming's receivables turnover, which indicates the number of times a company collects its accounts receivable during a specific period. The absence of this data makes it challenging to assess the efficiency of the company in collecting its outstanding receivables.

3. Payables Turnover: Similar to receivables turnover, there is no data provided for Corsair Gaming's payables turnover. Payables turnover ratio helps in evaluating how quickly a company pays its suppliers for credit purchases.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. Corsair Gaming's working capital turnover has been decreasing over the years, indicating a declining efficiency in utilizing its working capital for revenue generation.

In conclusion, while the inventory turnover ratio provides some insight into Corsair Gaming's inventory management efficiency, the lack of data for receivables turnover and payables turnover limits a comprehensive assessment of the company's overall activity ratios and working capital efficiency. It is important for the company to monitor and improve these ratios to enhance operational efficiency and financial performance.

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Average number of days

To analyze Corsair Gaming Inc's activity ratios, we will focus on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- The trend for DOH has been fluctuating over the years. It increased from 66.69 days in 2020 to 95.97 days in 2024, indicating that inventory levels are taking longer to turn into sales.
- A high DOH may suggest that Corsair Gaming Inc is carrying excess inventory or facing difficulties in selling products efficiently.

2. Days of Sales Outstanding (DSO):
- The data provided does not contain any information on DSO for Corsair Gaming Inc.
- DSO measures how long it takes for the company to collect revenue from credit sales. Without this information, it is difficult to assess the efficiency of the company's accounts receivable management.

3. Number of Days of Payables:
- The data does not provide any information on the Number of Days of Payables for Corsair Gaming Inc.
- Knowing the payables period would have helped in understanding how long the company takes to pay its suppliers, which is crucial for managing cash flow and vendor relationships.

In conclusion, the analysis of Corsair Gaming Inc's activity ratios based on the provided information suggests that while inventory turnover is a concern due to rising DOH, a complete assessment of the company's operational efficiency is limited without data on DSO and payables. It is essential for the company to closely monitor its inventory management practices to optimize working capital and improve overall financial performance.

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Long-term

The analysis of Corsair Gaming Inc's long-term activity ratios reveals important insights into the efficiency of the company's asset utilization over the years.

1. Fixed Asset Turnover:
- In 2020, the Fixed Asset Turnover ratio was 103.33, indicating that for every dollar invested in fixed assets, the company generated $103.33 in sales. This high ratio suggests efficient utilization of fixed assets during that period.
- By 2021, the Fixed Asset Turnover ratio further improved to 113.21, reflecting an even more effective management of fixed assets to drive sales.
- In 2022, there was a significant decline in the Fixed Asset Turnover ratio to 17.17. This drop may indicate potential inefficiencies in utilizing fixed assets to generate revenue, warranting closer examination of asset management strategies during that year.
- The data for 2023 and 2024 is not available (indicated by '—'), so it is not possible to assess the fixed asset turnover for these years.

2. Total Asset Turnover:
- The Total Asset Turnover ratio for Corsair Gaming Inc was 1.30 in 2020, signifying that the company generated $1.30 in revenue for every dollar of total assets owned. This ratio indicates moderate efficiency in utilizing total assets to generate sales.
- By 2021, the Total Asset Turnover ratio improved to 1.42, suggesting a more optimized use of total assets to drive sales higher.
- In 2022, the ratio decreased to 1.06, indicating a decline in the efficiency of asset utilization to generate revenue compared to the preceding years.
- In 2023 and 2024, the Total Asset Turnover ratios remained relatively stable at 1.08 and 1.07, respectively, showing a consistent level of efficiency in asset turnover during those years.

Overall, a higher Fixed Asset Turnover ratio signifies better efficiency in utilizing fixed assets, while a higher Total Asset Turnover ratio indicates improved effectiveness in leveraging all assets to generate revenue. The fluctuations observed in these ratios over the years highlight the importance of continually monitoring and optimizing asset utilization strategies to enhance operational efficiency and financial performance.