Corsair Gaming Inc (CRSR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Inventory turnover | 4.58 | 5.60 | 4.66 | 5.47 |
| Receivables turnover | 5.76 | 5.84 | 6.54 | 5.80 |
| Payables turnover | 4.58 | 6.27 | 5.89 | 4.13 |
| Working capital turnover | 4.98 | 4.91 | 7.35 | 9.17 |
Inventory Turnover:
Corsair Gaming Inc's inventory turnover ratio has seen a slight decline from 5.78 in 2019 to 4.58 in 2023. This indicates that the company's efficiency in managing its inventory has reduced over the years. However, the ratio is still relatively stable, indicating that the company is effectively converting its inventory into sales multiple times during the year.
Receivables Turnover:
The receivables turnover ratio for Corsair Gaming Inc has been consistent over the past five years, ranging between 5.42 in 2019 and 6.54 in 2021. This indicates that the company is efficient in collecting its accounts receivables, with a higher ratio suggesting that it is converting its receivables into cash more frequently.
Payables Turnover:
Corsair Gaming Inc's payables turnover ratio has varied significantly from year to year, ranging from 4.13 in 2020 to 6.27 in 2022. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly. The fluctuations in this ratio may indicate changes in the company's payment policies or relationships with its suppliers.
Working Capital Turnover:
The working capital turnover ratio has shown a decreasing trend for Corsair Gaming Inc, declining from 8.45 in 2019 to 4.98 in 2023. This suggests that the company's efficiency in utilizing its working capital to generate revenue has decreased over the years. A lower ratio may indicate inefficiencies in the company's operations or a need for better working capital management.
Overall, these activity ratios provide insights into Corsair Gaming Inc's operational efficiency and effectiveness in managing its inventory, receivables, payables, and working capital. Analyzing these ratios over time can help identify trends, areas for improvement, and potential opportunities for the company to enhance its financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 79.72 | 65.22 | 78.32 | 66.69 |
| Days of sales outstanding (DSO) | days | 63.32 | 62.55 | 55.84 | 62.96 |
| Number of days of payables | days | 79.65 | 58.22 | 61.99 | 88.42 |
Days of inventory on hand (DOH) measures how many days, on average, the company holds inventory before selling it. A higher number may indicate slower inventory turnover or excessive inventory levels. Corsair Gaming Inc's DOH has shown some fluctuation over the years, with an increase in 2023 compared to the previous year but still within a reasonable range.
Days of sales outstanding (DSO) represents the average number of days it takes for the company to collect its accounts receivable. A lower DSO is favorable as it indicates better cash flow and efficient collections. Corsair Gaming Inc's DSO has fluctuated over the years, with a slight increase in 2023 compared to 2022, indicating a slight delay in collecting receivables.
Number of days of payables measures how long it takes the company to pay its suppliers. A longer period may suggest favorable payment terms from suppliers or liquidity issues if payments are delayed. Corsair Gaming Inc's days of payables have varied over the years, showing an increase in 2023 compared to the previous year, signalling a longer period to pay suppliers.
Overall, based on the activity ratios analysis, Corsair Gaming Inc may need to keep an eye on its inventory management to ensure efficient turnover, work on optimizing its accounts receivable collection process to improve cash flow, and assess its payment terms with suppliers to maintain good relationships while managing liquidity effectively.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Fixed asset turnover | 45.32 | 39.37 | 113.21 | 103.33 |
| Total asset turnover | 1.08 | 1.06 | 1.42 | 1.30 |
Corsair Gaming Inc's fixed asset turnover has shown a fluctuating trend over the past five years, ranging from 39.37 to 113.21. This ratio indicates the efficiency with which the company is utilizing its fixed assets to generate sales. The significant variations in this ratio suggest changes in the company's asset utilization efficiency and investment in fixed assets relative to sales.
On the other hand, the total asset turnover ratio has been relatively stable, fluctuating between 1.04 and 1.42. This ratio reflects how well the company is utilizing all of its assets to generate revenue. A consistent total asset turnover ratio implies a steady and efficient use of both fixed and current assets to drive sales.
Overall, while the fixed asset turnover ratio indicates fluctuations in the efficiency of utilizing fixed assets, the total asset turnover ratio suggests stable efficiency in utilizing all assets to generate revenue over the years. Further qualitative analysis would be needed to understand the reasons behind the variations observed in the fixed asset turnover ratio.