Cytek Biosciences Inc (CTKB)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Inventory turnover | 1.37 | 1.31 | -2.39 |
| Receivables turnover | 3.45 | 0.06 | 0.07 |
| Payables turnover | 27.57 | 13.12 | -25.37 |
| Working capital turnover | 0.57 | 0.01 | 0.01 |
The activity ratios for Cytek Biosciences Inc provide insight into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.
1. Inventory turnover:
- The inventory turnover ratio has been showing a slight improvement over the years, from 1.31 in 2022 to 1.37 in 2023. This suggests that Cytek Biosciences Inc has been able to sell its inventory more often in 2023 compared to the previous year.
2. Receivables turnover:
- The receivables turnover ratio has significantly improved from 0.06 in 2022 to 3.45 in 2023. This indicates that the company is collecting its accounts receivables more efficiently in 2023, possibly due to better credit management or collection efforts.
3. Payables turnover:
- The payables turnover ratio also improved substantially from 13.12 in 2022 to 27.57 in 2023. This suggests that Cytek Biosciences Inc has been able to pay off its payables more frequently in 2023, which could indicate better cash management or vendor relationships.
4. Working capital turnover:
- The working capital turnover ratio has shown a significant improvement from 0.01 in both 2021 and 2022 to 0.57 in 2023. This indicates that the company is generating more revenue relative to its working capital in 2023, which may suggest improved operational efficiency or asset utilization.
Overall, the positive trends in the activity ratios, particularly in receivables turnover, payables turnover, and working capital turnover, are indicative of improved efficiency in managing the company's resources and operations in 2023 compared to the previous years.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 265.83 | 278.71 | — |
| Days of sales outstanding (DSO) | days | 105.76 | 6,019.36 | 4,980.47 |
| Number of days of payables | days | 13.24 | 27.81 | — |
Based on the provided data for Cytek Biosciences Inc, we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- In 2023, the DOH was 265.83 days, which indicates that, on average, the company had its current level of inventory on hand for approximately 266 days before it was sold. This represents an improvement from 2022 when the DOH was 278.71 days.
- A decrease in the DOH from one period to another suggests that inventory turnover has improved, indicating efficient management of inventory levels.
2. Days of Sales Outstanding (DSO):
- The DSO in 2023 was 105.76 days, significantly lower than the unusually high figures of 6,019.36 days in 2022 and 4,980.47 days in 2021.
- The decrease in DSO in 2023 signifies that on average, it took Cytek Biosciences Inc about 106 days to collect its accounts receivable, which is a positive trend indicating potential enhancements in the company's credit and collection policies.
3. Number of Days of Payables:
- The number of days of payables in 2023 stood at 13.24 days, down from 27.81 days in 2022. This decrease reflects the number of days it takes the company to pay its suppliers.
- A lower number of days of payables could indicate a tighter payment cycle, improved cash flow management, or possibly more favorable credit terms from suppliers.
In summary, Cytek Biosciences Inc has shown improvements in its activity ratios in 2023 compared to the prior year. The company managed its inventory more efficiently, collected its receivables in a quicker and more effective manner, and potentially improved its payment practices to suppliers. These trends suggest positive changes in the company's working capital management and operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Fixed asset turnover | 10.49 | 0.22 | 0.37 |
| Total asset turnover | 0.39 | 0.01 | 0.00 |
The long-term activity ratios for Cytek Biosciences Inc indicate how effectively the company is using its fixed assets and total assets to generate revenue over the past three years.
1. Fixed Asset Turnover:
- Dec 31, 2023: 10.49
- Dec 31, 2022: 0.22
- Dec 31, 2021: 0.37
The fixed asset turnover ratio measures the efficiency of a company in generating sales revenue from its investments in fixed assets. Cytek Biosciences Inc has shown a significant improvement in efficiently utilizing its fixed assets from 2021 to 2023. The substantial increase in the ratio from 2022 to 2023 suggests that the company has been able to generate more revenue relative to its investment in fixed assets.
2. Total Asset Turnover:
- Dec 31, 2023: 0.39
- Dec 31, 2022: 0.01
- Dec 31, 2021: 0.00
The total asset turnover ratio indicates the company's ability to generate sales from its total assets. In this case, Cytek Biosciences Inc also shows improvement in utilizing its total assets to generate revenue over the three-year period. The significant increase in the ratio from 2021 to 2022 and 2023 further suggests that the company has enhanced its efficiency in utilizing its total assets to generate sales.
In conclusion, the trend in both fixed asset turnover and total asset turnover ratios indicates that Cytek Biosciences Inc has been able to improve its operational efficiency and effectiveness in utilizing its assets to generate revenue. This improvement bodes well for the company's long-term financial performance and overall stability. However, further analysis and consideration of other financial metrics are necessary to gain a more comprehensive understanding of the company's financial health and performance.