Cirrus Logic Inc (CRUS)

Activity ratios

Short-term

Turnover ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Sep 23, 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
Inventory turnover 3.01 3.19 3.40 3.86 4.33 3.76 2.58 2.76 3.01 4.03 6.46 5.77 5.23 6.20 5.20 3.97 3.55 3.82 4.55 2.83
Receivables turnover 8.78 7.04 5.88 9.71 12.02 8.74 6.07 6.48 9.79 12.61 7.45 6.48 9.20 7.41 4.86 5.42 10.28 12.60 5.53 6.85
Payables turnover 14.25 11.29 10.04 11.58 17.72 17.16 9.73 10.41 11.95 11.55 8.39 8.05 7.51 7.43 7.00 1.93 7.18 6.44 7.15 5.98
Working capital turnover 1.82 1.77 1.92 2.05 2.12 1.89 1.84 1.97 2.15 2.37 2.57 2.93 3.12 3.10 3.02 3.39 2.15 2.18 2.19 2.34

Cirrus Logic Inc's inventory turnover ratio has fluctuated over the past several quarters, ranging from a low of 2.58 to a high of 6.46. This indicates that the company's ability to manage its inventory efficiently has varied. A higher turnover ratio suggests that inventory is selling quickly, which can be favorable for cash flow and profitability.

The receivables turnover ratio for Cirrus Logic Inc has also shown variability, with values ranging from a low of 4.86 to a high of 12.61. This variability may indicate inconsistencies in the company's collection of receivables. A higher turnover ratio implies that the company is collecting its outstanding receivables more effectively.

In terms of payables turnover, Cirrus Logic Inc has shown a relatively stable trend over the quarters, with values ranging from 1.93 to 17.72. A higher payables turnover ratio may suggest that the company is managing its payables efficiently and possibly taking advantage of supplier credit terms.

The working capital turnover ratio for Cirrus Logic Inc has displayed a declining trend, starting from 2.34 and decreasing to 1.82. This trend may indicate that the company is becoming less efficient in generating revenue relative to its invested working capital.

Overall, analyzing activity ratios such as inventory turnover, receivables turnover, payables turnover, and working capital turnover can provide insights into how effectively Cirrus Logic Inc is managing its operational activities and liquidity. Variations in these ratios over time can signal changes in the company's operational efficiency, financial health, and potential future performance.

Average number of days

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Sep 23, 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
Days of inventory on hand (DOH) days 121.29 114.35 107.46 94.50 84.27 97.11 141.30 132.07 121.08 90.59 56.46 63.21 69.82 58.90 70.22 91.98 102.82 95.54 80.18 128.80
Days of sales outstanding (DSO) days 41.58 51.86 62.04 37.59 30.37 41.79 60.08 56.35 37.29 28.94 49.00 56.35 39.67 49.23 75.10 67.36 35.50 28.98 65.94 53.26
Number of days of payables days 25.61 32.33 36.34 31.51 20.60 21.27 37.52 35.07 30.55 31.61 43.49 45.32 48.63 49.11 52.13 188.83 50.81 56.65 51.03 61.06

Cirrus Logic Inc's activity ratios reflect its efficiency in managing inventory, collecting receivables, and paying off its liabilities.

1. Days of Inventory on Hand (DOH): This ratio measures how many days, on average, it takes for Cirrus Logic to sell its inventory. Over the analyzed period, Cirrus Logic's DOH fluctuated, with a noticeable decrease from September 2023 to December 2023 followed by an increase in the following quarters. The DOH was generally high in the earlier years but saw a decreasing trend towards the later years, indicating better inventory management and faster turnover.

2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect its accounts receivable. Cirrus Logic's DSO also displayed variations over the period, showing some volatility. There was a significant decrease from September 2021 to March 2023, indicating efficient credit management. However, the DSO trended upwards in the later quarters, indicating potential issues with collections.

3. Number of Days of Payables: This ratio focuses on the number of days it takes for the company to pay its suppliers. Cirrus Logic's payables days decreased consistently over time, suggesting a positive trend towards quicker payments. This could have implications for cash flow management and relationships with vendors.

In conclusion, Cirrus Logic's activity ratios show fluctuations over time, reflecting changes in the company's operational efficiency. The company appears to have improved its inventory management and payment processes, but attention may be needed to address the increase in days of sales outstanding in the later periods.

Long-term

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Sep 23, 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
Fixed asset turnover — — — — — — 5.24 10.30 10.89 11.64 12.87 12.43 12.08 5.43 4.80 5.27 4.84 8.84 8.78 8.10
Total asset turnover 0.81 0.78 0.81 0.81 0.88 0.86 0.78 0.84 0.89 0.92 0.93 0.91 0.90 0.84 0.77 0.68 0.77 0.75 0.74 0.73

Based on the long-term activity ratios provided for Cirrus Logic Inc, we can observe the following trends:

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. Cirrus Logic Inc's fixed asset turnover ratio has fluctuated over the period analyzed. It increased steadily from September 2020 to June 2022, reaching a peak in the range of 12 to 13. However, from September 2022 onwards, the ratio began declining, indicating a potential decrease in the efficiency of utilizing its fixed assets.

2. Total Asset Turnover: The total asset turnover ratio indicates how well the company is using its total assets to generate revenue. Cirrus Logic Inc's total asset turnover ratio remained relatively stable from September 2020 to December 2022, hovering around 0.7 to 0.9. There was a slight increase in the ratio in the first half of 2023, but it started to decline towards the end of the period under review.

Overall, these ratios suggest that Cirrus Logic Inc may have experienced fluctuations in its efficiency in utilizing both fixed and total assets to generate revenue during the period analyzed. Further analysis and comparison with industry benchmarks may provide more insights into the company's operational efficiency and asset management strategies.