3D Systems Corporation (DDD)

Short-term

Turnover ratios

3D Systems Corporation's activity ratios provide insights into how efficiently the company is managing its resources and generating revenue.

1. Inventory turnover:
The inventory turnover ratio measures how many times inventory is sold and replaced over a period. 3D Systems Corporation's inventory turnover has fluctuated over the years, ranging from 4.43 to 6.63 times. A higher turnover indicates that the company is efficiently managing its inventory and selling goods quickly.

2. Receivables turnover:
The receivables turnover ratio shows how many times a company collects its accounts receivable during a period. 3D Systems Corporation's receivables turnover has varied, with figures ranging from 4.80 to 9.06 times. A higher turnover ratio suggests effective credit management and timely collection of outstanding payments.

3. Payables turnover:
The payables turnover ratio indicates how quickly a company pays its suppliers. 3D Systems Corporation has shown an increasing trend in payables turnover, with values ranging from 10.74 to 17.26 times. A higher turnover ratio signifies that the company is efficiently managing its payable obligations by paying suppliers promptly.

4. Working capital turnover:
The working capital turnover ratio measures how effectively working capital is utilized to generate sales revenue. 3D Systems Corporation's working capital turnover has varied, from 0.78 to 3.02 times. A higher turnover ratio reflects efficient utilization of working capital to support revenue generation activities.

Overall, by analyzing these activity ratios, we can infer that 3D Systems Corporation has demonstrated efficiency in managing its inventory, receivables, payables, and working capital over the years, which is essential for sustaining and growing its business operations.

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Average number of days

Days of Inventory on Hand (DOH):

The trend in Days of Inventory on Hand for 3D Systems Corporation fluctuated over the past five years, with a notable decrease in 2022 compared to the previous years. However, this metric increased again in 2023 to 64.68 days, indicating that the company held inventory for approximately 65 days on average. This may suggest potential inefficiencies in managing and turning over inventory, as a higher number of days indicates slower movement of inventory.

Days of Sales Outstanding (DSO):

The Days of Sales Outstanding metric for 3D Systems Corporation showed variability over the period under consideration. In 2021, there was a significant decrease to 40.27 days, indicating that the company took approximately 40 days, on average, to collect its accounts receivable. However, this metric increased in 2023 to 76.15 days, which could imply that the company may be facing challenges in collecting payments from customers efficiently.

Number of Days of Payables:

The Number of Days of Payables for 3D Systems Corporation fluctuated over the past five years, with a general downward trend from 2019 to 2021 followed by a slight increase in 2022 and a decrease in 2023. The decrease in the number of days of payables may suggest that the company is paying its suppliers more quickly, potentially impacting its liquidity position.

Overall, when assessing these activity ratios collectively, it appears that 3D Systems Corporation experienced fluctuations in managing its inventory, collecting receivables, and paying its suppliers over the years. These trends may indicate changes in the company's operational efficiency and working capital management that warrant further investigation.

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Long-term

The fixed asset turnover ratio for 3D Systems Corporation has shown fluctuating trends over the past five years. In 2023, the company achieved a fixed asset turnover of 7.95, which indicates that it generated $7.95 in sales revenue for every $1 invested in fixed assets. This ratio decreased from 9.14 in 2022 but remained higher compared to 2019 and 2020. A higher fixed asset turnover generally suggests more efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects how efficiently the company is using all its assets to generate revenue. In 2023, the total asset turnover was 0.52, showing that for every dollar in total assets, the company generated $0.52 in revenue. The total asset turnover has been quite low over the past five years, indicating that 3D Systems Corporation may not be effectively utilizing its total assets to generate sales. This ratio has shown a declining trend since 2019, indicating a potential inefficiency in asset utilization.

Overall, the fixed asset turnover ratio suggests that 3D Systems Corporation has been relatively consistent in generating sales from its fixed assets, while the total asset turnover ratio indicates a decline in the efficiency of using all assets to generate revenue over the years. Further analysis and comparison with industry benchmarks would provide more insights into the company's operational efficiency and asset utilization.