Dynatrace Holdings LLC (DT)

Short-term

Turnover ratios

The activity ratios of Dynatrace Holdings LLC provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory turnover: The inventory turnover ratio measures how many times inventory is sold and replaced during a period. Dynatrace's inventory turnover has shown a slight improvement over the years, from 2.61 in 2021 to 2.76 in 2022 and then 2.68 in 2023. The stable and consistent performance indicates that the company efficiently manages its inventory levels.

2. Receivables turnover: The receivables turnover ratio indicates how quickly a company collects cash from its credit sales. Dynatrace's receivables turnover has declined from 2.91 in 2021 to 2.65 in 2022 and further to 2.60 in 2023. This trend suggests a potential slowdown in collecting receivables, which may require attention to improve cash flow.

3. Payables turnover: The payables turnover ratio shows how efficiently a company pays its suppliers. Dynatrace's payables turnover has fluctuated, decreasing from 13.27 in 2021 to 7.61 in 2022, then increasing to 10.15 in 2023 and further to 12.45 in 2024. The variations in this ratio could indicate changes in payment terms with suppliers.

4. Working capital turnover: The working capital turnover ratio measures how effectively a company utilizes its working capital to generate revenue. Dynatrace's working capital turnover has declined significantly from 21.73 in 2021 to 11.22 in 2022, then to 14.28 in 2023, and further down to 4.13 in 2024. This decline suggests that the company may be less efficient in generating revenue with its available working capital.

In conclusion, while Dynatrace Holdings LLC has demonstrated steady inventory turnover and somewhat fluctuating payables turnover, there are areas for improvement in managing receivables and working capital turnover to enhance overall operational efficiency and cash flow management.

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Average number of days

The activity ratios of Dynatrace Holdings LLC provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- In March 2021, the company held inventory for an average of 140.01 days before selling it.
- By March 2022, this figure decreased to 132.17 days, indicating an improvement in inventory turnover efficiency.
- However, by March 2023, the DOH increased slightly to 135.97 days, implying a slower inventory turnover rate.
- The data for March 2024 and March 2025 is unavailable, making it difficult to assess the most recent trend in inventory management.

2. Days of Sales Outstanding (DSO):
- The DSO for March 2021 was 125.60 days, implying the average time taken by the company to collect revenue from sales.
- By March 2022, the DSO increased to 137.71 days, indicating a longer collection period for sales.
- Further deteriorating efficiency, the DSO for March 2023 increased to 140.53 days.
- The trend suggests a potential issue in collecting sales revenue promptly, impacting cash flow and liquidity.
- In March 2024, the DSO significantly rose to 156.55 days, indicating further delays in collecting receivables.

3. Number of Days of Payables:
- The company took 27.50 days, on average, to pay its obligations in March 2021.
- This period extended to 47.96 days in March 2022, indicating a significant delay in paying creditors.
- By March 2023, the average days of payables decreased to 35.95 days, showing an improvement in settling obligations.
- In March 2024, the days of payables reduced further to 29.33 days, reflecting an efficient payment practice.
- However, the data for March 2025 is not available, making it challenging to assess the current efficiency in paying creditors.

In conclusion, analyzing these activity ratios provides valuable insights into Dynatrace Holdings LLC's inventory management, sales collection efficiency, and payment practices, highlighting areas that may require attention to enhance operational performance and financial health.

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Long-term

Based on the provided data for Dynatrace Holdings LLC, we can analyze the long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio is used to measure how efficiently a company is utilizing its fixed assets to generate sales revenue.
- In March 2021, the Fixed Asset Turnover ratio was 19.06, indicating that the company generated $19.06 in sales for every $1 of fixed assets owned. This suggests a high level of efficiency in utilizing fixed assets.
- The ratio decreased to 8.93 in March 2022, which may indicate a decline in the efficiency of utilizing fixed assets to generate revenue.
- However, in March 2023, the Fixed Asset Turnover ratio significantly improved to 21.62, surpassing the initial level in 2021, suggesting increased efficiency in asset utilization.
- The data for March 31, 2024, and March 31, 2025 are not available for Fixed Asset Turnover, making it difficult to analyze the trend over a longer period.

2. Total Asset Turnover:
- The Total Asset Turnover ratio measures how efficiently a company is using its total assets to generate revenue.
- In March 2021, the Total Asset Turnover ratio was 0.31, indicating that the company generated $0.31 in sales for every $1 of total assets. This suggests a relatively lower efficiency in utilizing total assets to generate revenue.
- The ratio improved to 0.37 in March 2022, suggesting an increase in efficiency in generating sales revenue from total assets.
- Further improvement is seen in March 2023, with a Total Asset Turnover ratio of 0.42, indicating enhanced efficiency in utilizing total assets to generate revenue.
- The ratio remained stable at 0.42 in March 2024, demonstrating consistent efficiency in asset utilization.
- Data for March 31, 2025, is not available for Total Asset Turnover, so the trend for that year cannot be analyzed.

In conclusion, Dynatrace Holdings LLC has shown fluctuations in both Fixed Asset Turnover and Total Asset Turnover ratios over the years. The company demonstrated high efficiency in utilizing fixed assets in certain years compared to others, while also showing improvements in utilizing total assets to generate revenue. Further analysis over multiple years would provide a more comprehensive understanding of the company's long-term activity ratios.