Dynatrace Holdings LLC (DT)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 10.40 | 11.31 | 10.56 | 16.01 |
| Receivables turnover | 2.40 | 2.59 | 2.38 | 2.49 | 2.69 |
| Payables turnover | 47.38 | 39.32 | 31.16 | 53.78 | 55.49 |
| Working capital turnover | 4.24 | 14.23 | 11.25 | 21.85 | — |
1. Inventory Turnover:
- Dynatrace Holdings LLC's inventory turnover has been relatively stable over the past five years, with a noticeable decline in the most recent year, where data is missing.
- A high inventory turnover ratio indicates that the company effectively sells its inventory, suggesting strong sales or efficient inventory management.
- The declining trend may imply a change in sales patterns or inventory management strategies that could impact the company's profitability.
2. Receivables Turnover:
- The receivables turnover ratio shows a consistent trend of decreasing over the years, indicating that the company is collecting its accounts receivable at a slower pace.
- A lower receivables turnover ratio may suggest lenient credit terms given to customers, which could affect the company's cash flow and liquidity position.
- Dynatrace Holdings LLC may need to review its credit policies or collection procedures to improve the speed of receivables collection.
3. Payables Turnover:
- The payables turnover ratio has shown fluctuations over the years, with a significant increase in the most recent year, where data is missing.
- A high payables turnover ratio implies that the company is paying its suppliers quickly, which could impact relationships with suppliers or indicate possible cash flow constraints.
- The increasing trend may warrant a closer look at the company's payment practices and working capital management to ensure sustainability and maintain good supplier relationships.
4. Working Capital Turnover:
- Dynatrace Holdings LLC's working capital turnover ratio has been inconsistent over the past five years, with a noticeable decline in the most recent year, where data is missing.
- A higher working capital turnover ratio suggests that the company efficiently utilizes its working capital to generate sales revenue.
- The decreasing trend may signify changes in operating efficiency or financial structure that could affect the company's overall financial health and performance.
In conclusion, analyzing these activity ratios provides insights into Dynatrace Holdings LLC's operational efficiency, inventory management, receivables collection, payment practices, and working capital utilization. Monitoring these ratios over time can help identify trends and areas for improvement to enhance the company's financial performance and competitiveness.
Average number of days
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 35.11 | 32.28 | 34.56 | 22.79 |
| Days of sales outstanding (DSO) | days | 152.34 | 140.98 | 153.29 | 146.51 | 135.67 |
| Number of days of payables | days | 7.70 | 9.28 | 11.71 | 6.79 | 6.58 |
The analysis of Dynatrace Holdings LLC activity ratios reveals the following trends:
1. Days of Inventory on Hand (DOH):
- The company's efficiency in managing inventory improved over the five-year period, as reflected in decreasing DOH from 34.56 days in 2022 to 22.79 days in 2020.
- However, the DOH increased slightly to 35.11 days in 2024, indicating a potential slowdown in inventory turnover.
2. Days of Sales Outstanding (DSO):
- DSO increased steadily from 135.67 days in 2020 to 152.34 days in 2024, suggesting the company is taking longer to collect its accounts receivable.
- This trend may indicate potential issues with credit management or customer payment delays, which could impact cash flow and liquidity.
3. Number of Days of Payables:
- The company has been effectively managing its payables, with the number of days of payables declining from 11.71 days in 2022 to 6.58 days in 2020.
- However, there was a slight increase in the number of days of payables to 7.70 days in 2024, which may indicate a shift in the company's payment strategy.
Overall, Dynatrace Holdings LLC's activity ratios suggest a need for closer monitoring of inventory turnover, accounts receivable collection, and payment terms to optimize working capital management and improve overall efficiency.
Long-term
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 27.57 | 21.56 | 20.59 | 19.16 | 17.47 |
| Total asset turnover | 0.43 | 0.42 | 0.37 | 0.31 | 0.27 |
The fixed asset turnover ratio for Dynatrace Holdings LLC has shown a consistent increasing trend over the past five years, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests improved efficiency in utilizing its fixed assets to generate sales.
In contrast, the total asset turnover ratio has also been increasing over the same period, albeit at a slower pace compared to the fixed asset turnover ratio. This indicates that Dynatrace Holdings LLC is becoming more efficient in generating revenue from all its assets, including both fixed and current assets.
Overall, the improving trend in both the fixed asset turnover and total asset turnover ratios reflects positive operational efficiency and asset utilization for Dynatrace Holdings LLC over the years, which is a favorable sign for the company's long-term financial performance.