Cirrus Logic Inc (CRUS)

Short-term

Turnover ratios

Inventory turnover for Cirrus Logic Inc has fluctuated over the past five years, ranging from 4.61 to 7.47. This indicates how efficiently the company is managing its inventory levels to generate sales. A higher turnover ratio suggests better inventory management.

Receivables turnover has also varied, with values ranging from 7.41 to 12.60. This ratio reflects how quickly the company is collecting its accounts receivable. A higher turnover rate implies that the company is efficient in collecting payments from its customers.

Payables turnover has shown an increasing trend over the years, ranging from 7.92 to 18.86. This ratio highlights how quickly the company is paying its suppliers. A higher turnover ratio indicates that the company is effectively managing its accounts payable.

Working capital turnover has fluctuated between 1.94 and 3.10. This ratio indicates the efficiency of Cirrus Logic Inc in utilizing its working capital to generate sales. A higher turnover ratio suggests that the company is efficiently using its working capital to support its operations and revenue generation.

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Average number of days

Analyzing the activity ratios of Cirrus Logic Inc, we can observe the trend over the past five years.

1. Days of Inventory on Hand (DOH):
- In 2024, the DOH increased to 79.18 days from 69.68 days in 2023, indicating that Cirrus Logic held its inventory for a longer period before selling it. This increase may suggest issues with inventory management or slowing sales.
- The DOH was highest in 2021 at 77.67 days, which decreased to 48.89 days in 2022 before rising again in 2024. This fluctuation indicates volatility in the company's inventory management processes.

2. Days of Sales Outstanding (DSO):
- The DSO in 2024 was 33.17 days, up from 28.96 days in 2023. A higher DSO implies that it takes longer for Cirrus Logic to collect its accounts receivable, potentially impacting cash flow.
- The lowest DSO was recorded in 2021 at 28.98 days, indicating more efficient collection of receivables that year.

3. Number of Days of Payables:
- Cirrus Logic took 19.35 days to pay its suppliers in 2024, a decrease from 24.32 days in 2023. This faster payment cycle may indicate improved vendor relations or better cash management.
- In 2021, the company took 46.06 days to pay its bills, the highest among the years analyzed. This suggests a more extended period allowed for payables in that year.

Overall, analyzing these activity ratios indicates important insights into Cirrus Logic's operational efficiency, inventory management, and cash flow cycle over the analyzed period.

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Long-term

The long-term activity ratios of Cirrus Logic Inc can provide insights into the efficiency with which the company utilizes its assets to generate revenue.

1. Fixed asset turnover:
- Cirrus Logic Inc's fixed asset turnover ratio has been relatively stable over the past five years, ranging from 8.09 to 11.64.
- The increasing trend in fixed asset turnover from 8.09 in 2020 to 11.64 in 2023 indicates that the company has been generating more revenue per dollar of investment in fixed assets.
- However, there was a slight decrease in 2024 to 10.51, which could suggest a potential decrease in efficiency in utilizing fixed assets to generate revenue.

2. Total asset turnover:
- The total asset turnover ratio of Cirrus Logic Inc has fluctuated over the years, with the highest value of 0.92 in 2023 and the lowest value of 0.75 in 2021.
- The company's ability to generate sales from its total assets improved in 2023 with a total asset turnover of 0.92, indicating more efficient utilization of total assets.
- In 2024, the total asset turnover decreased to 0.80, possibly suggesting a decline in the company's efficiency in generating revenue from its total assets compared to the previous year.

Overall, the analysis of Cirrus Logic Inc's long-term activity ratios indicates that while the company has shown some improvements in asset turnover efficiency over the years, there are fluctuations that may require further investigation to understand the underlying reasons for these changes.