Deluxe Corporation (DLX)

Activity ratios

Short-term

Turnover ratios

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 Jun 30, 2019 Mar 31, 2019
Inventory turnover 24.46 21.08 18.93 19.17 19.75 22.64 27.00 27.66 25.32 23.23 22.59 19.05 18.21 14.77 16.31 19.10 20.36 19.46 17.68 17.82
Receivables turnover 9.30 8.47 8.34 8.03 8.90 9.05 9.25 9.07 8.20 9.26 8.80 10.87 9.66 13.43 13.63 12.58 12.29 14.08 13.16 12.78
Payables turnover 6.65 6.37 5.95 6.54 6.57 6.90 6.84 6.53 5.78 5.94 5.47 6.48 6.25 6.59 7.48 7.53 7.25 8.41 8.54 8.74
Working capital turnover — — — — — — — — — 71.55 23.82 17.47 18.89 6.21 5.35 6.09 31.26 31.49 21.07 26.84

1. Inventory turnover:
- Deluxe Corp.'s inventory turnover has been fluctuating over the past eight quarters, with a range between 18.93 and 27.66.
- The higher inventory turnover indicates that the company is able to sell its inventory more frequently, which is generally a positive sign.
- However, a significant decrease in inventory turnover might indicate inefficiencies in inventory management or potential overstocking issues.

2. Receivables turnover:
- The receivables turnover ratio for Deluxe Corp. has ranged from 8.64 to 10.10 over the past eight quarters.
- A higher receivables turnover suggests that the company is collecting its accounts receivable more quickly, which is favorable for cash flow.
- A decreasing trend in receivables turnover may indicate potential issues with credit policies or collection efforts.

3. Payables turnover:
- The payables turnover ratio for Deluxe Corp. has ranged between 5.95 and 6.90 over the past quarters.
- A higher payables turnover ratio signifies that the company is paying its suppliers more quickly, which could indicate strong financial health and efficient working capital management.
- A decreasing payables turnover ratio may suggest potential cash flow issues or strained supplier relationships.

4. Working capital turnover:
- Data for working capital turnover is not available in the provided table.
- Working capital turnover is a measure of how efficiently a company is using its working capital to generate sales.
- The absence of working capital turnover data makes it challenging to assess the company's efficiency in this aspect.

In summary, analyzing Deluxe Corp.'s activity ratios reveals insights into its inventory management, receivables collection, and payables management. Constant monitoring of these ratios can help the company identify areas for improvement and make informed decisions regarding working capital efficiency.

Average number of days

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 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 14.92 17.32 19.28 19.04 18.48 16.12 13.52 13.20 14.42 15.71 16.16 19.16 20.04 24.72 22.38 19.11 17.92 18.76 20.65 20.49
Days of sales outstanding (DSO) days 39.24 43.11 43.77 45.43 41.01 40.34 39.48 40.24 44.53 39.42 41.46 33.57 37.77 27.17 26.77 29.02 29.69 25.92 27.73 28.55
Number of days of payables days 54.90 57.33 61.33 55.82 55.54 52.89 53.34 55.91 63.18 61.49 66.69 56.29 58.43 55.36 48.80 48.47 50.38 43.38 42.73 41.74

Based on the activity ratios for Deluxe Corp. over the past eight quarters, we can observe trends in the efficiency of the company's inventory management, accounts receivable collection, and accounts payable payment:

1. Days of Inventory on Hand (DOH): The days of inventory on hand have shown fluctuations over the quarters, with a general decreasing trend from Q2 2022 to Q2 2023. This indicates that Deluxe Corp. has been more efficient in managing its inventory levels and converting inventory into sales within a shorter period.

2. Days of Sales Outstanding (DSO): The days of sales outstanding have also varied over the quarters, with a slight increase from Q1 2022 to Q3 2023. This implies that the company's accounts receivable collection period has slightly lengthened, potentially impacting its cash flow and liquidity position.

3. Number of Days of Payables: The number of days of payables has shown fluctuations but remained relatively stable over the quarters. The company has not significantly extended or reduced its payment period to suppliers, which may suggest consistent relationships with creditors.

Overall, Deluxe Corp. should continue to monitor and manage its activity ratios to optimize inventory levels, expedite accounts receivable collection, and effectively manage its payment terms with suppliers to enhance operational efficiency and cash flow management.

Long-term

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 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 23.38 18.33 17.61 17.75 17.92 18.33 17.39 17.20 16.05 14.69 18.82 19.87 20.19 23.03 24.56 21.17 20.82 21.71 21.98 22.30
Total asset turnover 0.71 0.77 0.76 0.76 0.73 0.76 0.76 0.72 0.66 0.63 0.60 0.92 0.97 0.93 0.93 0.98 1.03 1.06 0.87 0.86

The fixed asset turnover ratio for Deluxe Corp. has been relatively stable over the past eight quarters, ranging from 17.20 to 18.81. This indicates that the company is generating significant sales from its investment in fixed assets, such as property, plant, and equipment. A higher fixed asset turnover ratio suggests that Deluxe Corp. is effectively utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio for Deluxe Corp. has shown some fluctuation between 0.71 and 0.77 over the same period. This ratio represents the company's ability to generate sales from all its assets, including fixed and current assets. A higher total asset turnover ratio indicates that Deluxe Corp. is efficient in utilizing all its assets to generate revenue.

In summary, Deluxe Corp. has shown efficiency in generating sales from both its fixed assets and total assets. The stability of the fixed asset turnover ratio and the fluctuation in the total asset turnover ratio suggest that the company is effectively managing its asset base to drive sales and ultimately improve its financial performance.