CommVault Systems Inc (CVLT)

Short-term

Turnover ratios

CommVault Systems Inc's activity ratios provide insights into the company's efficiency in managing its assets and liabilities.

1. Inventory turnover:
- In the fiscal year ending March 31, 2023, the inventory turnover ratio was 3.50, indicating that inventory was sold and replaced approximately 3.50 times during the year. However, data for other years is not available for comparison.

2. Receivables turnover:
- The receivables turnover ratio has been relatively stable over the past five years, ranging from 3.73 to 4.56. This indicates that CommVault Systems Inc has been able to convert its accounts receivable into cash efficiently, with an average of about 4 times per year.

3. Payables turnover:
- The payables turnover ratio has shown significant fluctuations over the years, ranging from 263.56 to 1,253.72. A higher ratio indicates that the company is paying its suppliers more frequently, which could be a sign of favorable credit terms or efficient cash management.

4. Working capital turnover:
- CommVault Systems Inc's working capital turnover has also varied over the years, with the highest ratio of 8.55 in the fiscal year ending March 31, 2022. This ratio measures how efficiently the company is using its working capital to generate sales revenue. Higher turnover ratios typically indicate better utilization of working capital.

Overall, analyzing these activity ratios provides valuable insights into CommVault Systems Inc's operational efficiency and effectiveness in managing its assets and liabilities over the years.

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Average number of days

CommVault Systems Inc's activity ratios indicate the efficiency of its inventory management, accounts receivable collection, and accounts payable management over the past five years.

1. Days of Inventory on Hand (DOH): The company had varying levels of inventory turnover during the period, with the highest being 104.27 days in 2024 and the lowest being 24.94 days in 2021. A high DOH suggests that inventory is not being sold quickly, which may tie up capital and increase storage costs. The company should aim to reduce DOH to improve liquidity and operational efficiency.

2. Days of Sales Outstanding (DSO): CommVault Systems Inc's DSO ranged from 79.97 days in 2020 to 97.90 days in 2023. A high DSO indicates that the company is taking a longer time to collect payments from customers, which can impact cash flow and working capital. The company should focus on improving its credit policies and collections processes to reduce DSO.

3. Number of Days of Payables: The number of days of payables was relatively low, with the highest being 1.38 days in 2022 and the lowest at 0.29 days in 2023. A low number of days of payables suggests that the company is paying its suppliers quickly, which may indicate strong supplier relationships but can also put pressure on cash flow.

In summary, CommVault Systems Inc should aim to optimize its inventory turnover, reduce DSO, and carefully manage its payables to enhance liquidity, working capital efficiency, and overall financial performance.

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Long-term

CommVault Systems Inc's fixed asset turnover has shown a consistent improvement over the past five years, indicating that the company is generating more revenue relative to its investment in fixed assets. This improvement suggests better efficiency in utilizing its long-term assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated over the years, with a slight decrease from 2023 to 2024. This ratio indicates how effectively the company is using all its assets to generate revenue. Although the ratio is below 1, indicating that the company's assets are not used as efficiently as they could be to generate sales, the trend has been relatively stable over the years.

Overall, CommVault Systems Inc's long-term activity ratios reflect positive trends in terms of generating revenue from both fixed and total assets. The company's ability to efficiently utilize its fixed assets and generate revenue relative to total assets bodes well for its long-term operational performance.