Catalent Inc (CTLT)
Activity ratios
Short-term
Turnover ratios
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.97 | 4.52 | 4.34 | 4.11 | 4.15 | 4.31 | 3.91 | 4.44 | 4.54 | 4.60 | 4.29 | 4.42 | 4.70 | 8.82 | 9.74 | 11.36 | 13.14 | 6.62 | 7.47 | 7.17 |
| Receivables turnover | 4.76 | 4.73 | 4.86 | 5.09 | 4.25 | 4.29 | 5.16 | 4.85 | 4.57 | 5.05 | 5.15 | 5.03 | 3.95 | 7.07 | 7.27 | 7.74 | 6.25 | 4.11 | 4.01 | 4.06 |
| Payables turnover | 9.50 | 8.89 | 8.26 | 8.92 | 7.60 | 8.14 | 8.72 | 8.58 | 7.57 | 7.76 | 8.12 | 7.58 | 6.87 | 12.73 | 12.58 | 13.26 | 13.26 | 7.12 | 7.66 | 8.40 |
| Working capital turnover | 2.80 | 2.73 | 2.67 | 3.91 | 3.67 | 3.59 | 3.46 | 2.77 | 2.64 | 2.38 | 2.32 | 1.47 | 2.32 | 3.61 | 3.75 | 3.77 | 3.74 | 3.46 | 4.25 | 4.04 |
Catalent Inc's inventory turnover has shown a declining trend over the past several quarters, indicating that the company is taking longer to sell its inventory. Despite some fluctuations, the inventory turnover ratio has decreased from a high of 13.14 in December 2019 to 5.97 in June 2024.
In contrast, the receivables turnover ratio has been relatively stable over the period, with minor fluctuations observed. This suggests that Catalent Inc is efficient in collecting its accounts receivables, averaging around 4.5 to 5 times per year.
The payables turnover ratio has generally shown an increasing trend, indicating that the company is taking longer to pay its suppliers compared to previous periods. The ratio has risen from around 7 times per year in December 2019 to approximately 9.5 times per year in June 2024.
The working capital turnover ratio has fluctuated but generally remained above 2. This indicates that Catalent Inc is effectively utilizing its working capital to generate sales revenue. The ratio peaked at 4.25 in March 2022, reflecting strong efficiency in utilizing its resources to drive sales.
Overall, the activity ratios suggest that Catalent Inc may need to focus on managing its inventory more effectively to improve its turnover rate. Additionally, the company may want to monitor its payables turnover to ensure it strikes a balance between timely payments to suppliers and maintaining healthy cash flow.
Average number of days
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 61.12 | 80.82 | 84.11 | 88.80 | 87.99 | 84.65 | 93.27 | 82.18 | 80.37 | 79.29 | 85.15 | 82.56 | 77.66 | 41.38 | 37.49 | 32.12 | 27.78 | 55.14 | 48.87 | 50.93 |
| Days of sales outstanding (DSO) | days | 76.73 | 77.24 | 75.08 | 71.74 | 85.79 | 85.18 | 70.67 | 75.22 | 79.89 | 72.33 | 70.92 | 72.62 | 92.39 | 51.62 | 50.18 | 47.18 | 58.37 | 88.78 | 91.07 | 89.89 |
| Number of days of payables | days | 38.44 | 41.06 | 44.17 | 40.94 | 48.02 | 44.83 | 41.85 | 42.55 | 48.20 | 47.03 | 44.93 | 48.18 | 53.11 | 28.67 | 29.01 | 27.53 | 27.52 | 51.25 | 47.66 | 43.48 |
Days of inventory on hand (DOH) for Catalent Inc have been fluctuating over the past few quarters, with a general trend of improvement from 93.27 days in December 2022 to 61.12 days in June 2024. This indicates that the company is managing its inventory more efficiently, holding fewer days' worth of inventory on hand.
Days of sales outstanding (DSO) have also varied, showing an improvement from 92.39 days in March 2021 to 47.18 days in December 2020, but then increasing to 76.73 days in June 2024. This suggests that the company is taking longer to collect on its sales, which may impact its cash flow and liquidity.
The number of days of payables has fluctuated as well, with a decrease from 53.11 days in March 2021 to 27.52 days in December 2020, followed by an increase to 38.44 days in June 2024. A lower number of days of payables indicates that the company is paying its suppliers more quickly, which could impact its cash flow and working capital management.
In general, improvements in inventory management efficiency and a decrease in days of sales outstanding are positive signs for Catalent Inc. However, the increase in days of sales outstanding and days of payables in recent quarters may warrant further investigation to ensure sustainable financial health and operational effectiveness.
Long-term
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.20 | 1.11 | 1.08 | 1.13 | 1.16 | 1.22 | 1.32 | 1.52 | 1.54 | 1.67 | 1.64 | 1.62 | 1.58 | 2.50 | 2.63 | 2.66 | 2.76 | 1.62 | 1.69 | 1.69 |
| Total asset turnover | 0.45 | 0.42 | 0.41 | 0.42 | 0.40 | 0.42 | 0.42 | 0.47 | 0.46 | 0.46 | 0.44 | 0.41 | 0.44 | 0.67 | 0.68 | 0.68 | 0.67 | 0.41 | 0.44 | 0.43 |
Catalent Inc's long-term activity ratios provide insights into the efficiency of the company in utilizing its assets to generate sales.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company generates revenue from its fixed assets.
- Catalent Inc's fixed asset turnover ratio has fluctuated over the period under review, with values ranging from 1.08 to 2.66.
- The trend shows an overall increase in the ratio from 1.08 in December 2023 to 2.66 in March 2020, suggesting improved efficiency in utilizing fixed assets to generate revenue.
- However, there were fluctuations in the ratio during the period, indicating potential changes in the company's asset utilization efficiency.
2. Total Asset Turnover:
- The total asset turnover ratio reflects the company's ability to generate sales relative to its total assets.
- Catalent Inc's total asset turnover ratio ranged from 0.41 to 0.68 during the period analyzed.
- The trend in this ratio is relatively stable, with fluctuations within a certain range, showing consistency in generating revenue compared to total assets.
- The ratio improved from 0.41 in December 2021 to 0.68 in March 2020, indicating enhanced efficiency in utilizing total assets to generate sales.
In conclusion, the analysis of Catalent Inc's long-term activity ratios suggests that the company has shown improvements in utilizing both fixed and total assets to generate revenue over the period under review. However, fluctuations in these ratios indicate potential changes in the efficiency of asset utilization that may require further investigation.