Deluxe Corporation (DLX)

Short-term

Turnover ratios

Based on the provided data for Deluxe Corporation's activity ratios, let's analyze the key ratios:

1. Inventory Turnover:
The inventory turnover ratio measures how efficiently a company manages its inventory. Deluxe Corporation's inventory turnover has been fluctuating over the years, ranging from 14.93 to 27.66 times. Generally, a higher inventory turnover ratio indicates better inventory management, as the company is selling its goods faster.

2. Receivables Turnover:
Unfortunately, there is no data available for receivables turnover, which measures how quickly a company collects its accounts receivable. Without this information, it is challenging to assess how efficiently Deluxe Corporation is collecting payments from its customers.

3. Payables Turnover:
Similar to receivables turnover, there is no data provided for payables turnover, which evaluates how effectively a company pays its suppliers. Without this information, it is difficult to determine how efficiently Deluxe Corporation is managing its accounts payable.

4. Working Capital Turnover:
The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales. Deluxe Corporation's working capital turnover has shown significant variability, ranging from 5.35 to 71.55 times. A higher working capital turnover ratio suggests that the company is efficiently using its working capital to drive sales.

Overall, based on the available data for inventory turnover and working capital turnover, Deluxe Corporation appears to be managing its inventory efficiently and utilizing its working capital effectively to generate sales. However, the lack of information on receivables turnover and payables turnover limits a comprehensive assessment of the company's overall activity ratios.

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Average number of days

Deluxe Corporation's activity ratios provide valuable insights into how efficiently the company manages its inventory and accounts receivable.

1. Days of Inventory on Hand (DOH):
- The DOH ratio decreased gradually from 18.92 days as of March 31, 2020, to a low of 13.20 days by March 31, 2022, indicating that Deluxe Corporation was able to turn over its inventory more quickly over this period.
- However, there was a slight increase in the DOH ratio to 18.48 days by December 31, 2022, and then a subsequent decline to 13.36 days by December 31, 2024. This fluctuation suggests that the company may have experienced variations in demand or supply chain issues during this time.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO), which indicates the average number of days it takes for the company to collect its accounts receivable. Without this data, it is challenging to assess how efficiently Deluxe Corporation manages its accounts receivable.

3. Number of Days of Payables:
- The data also lacks details on the Number of Days of Payables, which would show how long it takes the company to pay its suppliers. This ratio is crucial for understanding the company's working capital management and cash flow position.

In conclusion, while the analysis of Deluxe Corporation's Days of Inventory on Hand (DOH) provides some insights into its inventory management efficiency, the absence of information on Days of Sales Outstanding (DSO) and Number of Days of Payables limits a comprehensive assessment of the company's overall activity ratios. To gain a more holistic view of Deluxe Corporation's performance, additional financial data, particularly related to accounts receivable and payables, would be necessary.

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Long-term

Based on the provided data on Deluxe Corporation's long-term activity ratios, we can observe the following trends:

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently the company is utilizing its fixed assets to generate sales. A higher ratio indicates better efficiency in generating revenue from fixed assets.
- In the initial periods, Deluxe Corporation experienced a steady increase in the Fixed Asset Turnover ratio from March 2020 to June 2020, indicating improved efficiency in asset utilization.
- However, there was a decline in the ratio in the subsequent periods, with fluctuations observed throughout the data points. This suggests some variability in how effectively the company is utilizing its fixed assets to generate sales.
- Notably, there were periods where data was not available, which limits a comprehensive analysis of the trend over time.

2. Total Asset Turnover:
- The Total Asset Turnover ratio measures the company's ability to generate sales from its total assets. A higher ratio implies better asset utilization to generate revenue.
- Deluxe Corporation exhibited fluctuations in the Total Asset Turnover ratio over the periods analyzed. There was a decline in the ratio from March 2020 to September 2021, indicating a potential decrease in revenue generated from total assets during that period.
- Subsequently, there was a slight increase in the ratio from September 2021 to December 2022, suggesting improved asset utilization efficiency during that timeframe. However, the ratio fluctuated in the following periods.
- From March 2024, there was an improvement in the Total Asset Turnover ratio, indicating enhanced efficiency in generating revenue from total assets.

In conclusion, the analysis of Deluxe Corporation's long-term activity ratios highlights fluctuations in both Fixed Asset Turnover and Total Asset Turnover ratios over the analyzed periods. These fluctuations suggest varying levels of efficiency in utilizing assets to generate revenue, and further examination would be necessary to understand the underlying factors driving these trends.