Cirrus Logic Inc (CRUS)

Short-term

Turnover ratios

Cirrus Logic Inc's inventory turnover has shown fluctuating trends over the past periods, ranging from a low of 2.71 to a high of 7.64. A higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels and selling its products quickly. The company experienced a peak in inventory turnover in the first quarter of 2022, suggesting efficient inventory management at that time.

In terms of receivables turnover, Cirrus Logic Inc has also seen variations in performance, with a low of 4.86 and a high of 12.60. A higher receivables turnover ratio implies that the company is collecting its accounts receivable more efficiently. The company achieved its highest receivables turnover in the first quarter of 2021, indicating effective credit management and collection practices during that period.

The payables turnover ratio for Cirrus Logic Inc has fluctuated over the periods, from a low of 2.36 to a high of 20.56. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly. The company experienced a spike in payables turnover in the second quarter of 2023, indicating efficient management of payment obligations during that period.

When looking at the working capital turnover, Cirrus Logic Inc has maintained a relatively stable performance with minor fluctuations. The working capital turnover ratio has ranged from 1.78 to 3.39, with a higher ratio indicating efficient utilization of working capital to generate sales. The company achieved its peak working capital turnover in the third quarter of 2021, suggesting effective management of its current assets and liabilities to support revenue generation.

Overall, the analysis of Cirrus Logic Inc's activity ratios reflects varying levels of efficiency in managing inventory, receivables, payables, and working capital over the analyzed periods. Investors and stakeholders may want to further investigate the reasons behind these fluctuations to assess the company's operational effectiveness and financial health.

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Average number of days

Days of inventory on hand (DOH) for Cirrus Logic Inc have fluctuated over the past few quarters, with a peak of 134.62 days in September 2020 and a low of 47.75 days in December 2022. The current DOH is 79.18 days, indicating an increase in inventory holding period compared to the previous quarter.

Days of sales outstanding (DSO) have also shown variability, ranging from a high of 75.14 days in December 2021 to a low of 28.96 days in March 2023. The current DSO stands at 33.17 days, suggesting an improvement in the collection efficiency of accounts receivable compared to the prior quarter.

The number of days of payables reflects the time it takes for Cirrus Logic to pay its suppliers. This metric has displayed significant fluctuations, with the highest number of days reaching 154.81 in December 2021 and the lowest at 17.75 days in December 2019. The current days of payables is 19.35 days, showing a slight increase compared to the previous quarter.

Overall, these activity ratios indicate that Cirrus Logic Inc has been managing its inventory, receivables, and payables efficiently, although there have been fluctuations in performance over the analyzed periods. An increase in DOH and DSO can tie up capital, while maintaining a balance with payables turnover is crucial for optimizing working capital management.

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Long-term

Cirrus Logic Inc's long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has shown a fluctuating trend over the analyzed periods, ranging from 6.42 to 12.87. This ratio measures how effectively the company is generating sales from its fixed assets. The generally high fixed asset turnover ratios indicate that Cirrus Logic is efficiently using its property, plant, and equipment to generate revenue, with a peak at 12.87 in December 2022.

On the other hand, the total asset turnover ratio, which assesses how well the company is utilizing all its assets to generate revenue, has shown a more stable trend with values hovering around 0.75 to 0.93. This demonstrates that for every dollar of assets owned by Cirrus Logic, the company is generating between $0.75 and $0.93 in sales. Despite some fluctuations, the company has maintained a relatively consistent total asset turnover ratio over time.

Overall, the high fixed asset turnover ratios suggest that Cirrus Logic effectively utilizes its property and equipment to drive sales, while the stable total asset turnover ratios indicate that the company efficiently employs all its assets to generate revenue. It can be concluded that in terms of long-term activity ratios, Cirrus Logic has been able to effectively manage its assets to generate sales over the analyzed periods.