Catalent Inc (CTLT)

Activity ratios

Short-term

Turnover ratios

Sep 30, 2024 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
Inventory turnover 6.25 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
Receivables turnover 5.82 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
Payables turnover 9.22 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
Working capital turnover 2.93 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

Catalent Inc's activity ratios provide insight into how effectively the company is managing its inventory, receivables, payables, and overall working capital.

1. Inventory turnover:
Catalent Inc's inventory turnover has been relatively stable over the past quarters, averaging around 4.5 to 6.25 times. This indicates that the company is efficiently managing its inventory by selling and replenishing its stock multiple times per year. An increasing trend in inventory turnover generally reflects efficient inventory management.

2. Receivables turnover:
The receivables turnover ratio for Catalent Inc has fluctuated between 4.25 and 7.27 times over the quarters. A higher turnover ratio typically suggests that the company is collecting receivables quickly, which is beneficial for maintaining healthy cash flow. The fluctuations in the ratio may indicate changes in the company's credit policies or the creditworthiness of its customers.

3. Payables turnover:
Catalent Inc's payables turnover has shown consistency around 7.5 to 9.5 times over the quarters, indicating that the company is able to efficiently manage its payables by paying suppliers multiple times a year. A higher payables turnover ratio suggests that the company is effectively managing its trade credit and supplier relationships.

4. Working capital turnover:
The working capital turnover ratio for Catalent Inc has varied between 1.47 and 4.25 times. A higher ratio indicates that the company is effectively utilizing its working capital to generate sales revenue. The fluctuations in this ratio may reflect changes in the efficiency of the company's working capital management.

Overall, Catalent Inc's activity ratios suggest that the company is generally effective in managing its inventory, receivables, payables, and working capital. However, changes in these ratios over time may warrant further investigation to understand the underlying factors affecting the company's operational efficiency.

Average number of days

Sep 30, 2024 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
Days of inventory on hand (DOH) days 58.39 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
Days of sales outstanding (DSO) days 62.73 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
Number of days of payables days 39.59 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

Catalent Inc's Days of Inventory on Hand (DOH) have shown fluctuations over the periods analyzed, ranging from a low of 27.78 days to a high of 93.27 days. Lower DOH values indicate higher inventory turnover efficiency, while higher values may suggest excessive inventory levels or slow-moving inventory.

Days of Sales Outstanding (DSO) also varied, with a range from 47.18 days to 92.39 days. Lower DSO values are preferable as they indicate quicker collection of accounts receivable, whereas higher values may imply potential issues with collecting revenue promptly.

The Number of Days of Payables ranged from 27.52 days to 53.11 days. A lower number of days of payables suggests the company is paying its suppliers faster, possibly to take advantage of discounts or maintain strong supplier relationships, while a higher number may indicate taking longer to settle payables.

Overall, analyzing these activity ratios can provide insights into Catalent Inc's efficiency in managing its inventory, collecting receivables, and paying suppliers, which are crucial aspects of its operational performance and working capital management.

Long-term

Sep 30, 2024 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
Fixed asset turnover 1.20 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
Total asset turnover 0.46 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

The fixed asset turnover ratio for Catalent Inc has been relatively stable over the past few years, ranging between 1.08 and 1.67. This ratio indicates that for each dollar invested in fixed assets, the company generates between $1.08 and $1.67 in revenue. The higher the ratio, the more efficient the company is at utilizing its fixed assets to generate sales.

In contrast, the total asset turnover ratio has also been relatively stable but at a lower level, ranging between 0.41 and 0.68. This ratio reflects the company's ability to generate sales from all its assets, both fixed and current. A lower ratio compared to the fixed asset turnover ratio suggests that the company may have a significant portion of its assets tied up in non-productive or low-return assets.

Overall, while the fixed asset turnover ratio indicates that Catalent Inc is efficient in utilizing its fixed assets to generate sales, the total asset turnover ratio suggests that the company could potentially improve its efficiency in generating sales from all its assets. Monitoring these ratios over time can help evaluate the company's asset utilization efficiency and identify areas for improvement.