Dynatrace Holdings LLC (DT)

Short-term

Turnover ratios

The analysis of Dynatrace Holdings LLC's activity ratios reveals the following:

1. Inventory Turnover:
The inventory turnover ratio fluctuated over the years, ranging from 1.94 to 3.18. It shows how many times the company's inventory was sold and replaced during a specific period. Generally, a higher inventory turnover ratio indicates efficient inventory management.

2. Receivables Turnover:
The receivables turnover ratio varied between 2.33 and 6.17, indicating the efficiency of the company in collecting its accounts receivable. A higher ratio suggests that the company is efficiently collecting payments from its customers.

3. Payables Turnover:
The payables turnover ratio ranged from 7.20 to 73.00, reflecting how quickly the company pays its suppliers. A higher ratio implies that the company is managing its payables effectively, but extremely high ratios may indicate potential cash flow issues.

4. Working Capital Turnover:
The working capital turnover ratio exhibited fluctuations, indicating how efficiently the company utilizes its working capital to generate revenue. A higher ratio suggests better utilization of the company's resources.

Overall, analyzing these activity ratios can provide insights into how efficiently Dynatrace Holdings LLC manages its inventory, receivables, payables, and working capital to support its operations and growth strategy.

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Average number of days

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

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an initial increase from 111.50 days on June 30, 2020, peaking at 188.46 days on December 31, 2020, before gradually decreasing to 129.34 days by December 31, 2023.
- The DOH ratio measures how many days, on average, inventory is held before being sold. A lower DOH indicates a more efficient inventory management.

2. Days of Sales Outstanding (DSO):
- DSO experienced fluctuations over the period, with peaks observed on March 31, 2021 (125.60 days) and March 31, 2024 (156.55 days). However, a general downward trend is visible, reaching 134.17 days by March 31, 2025.
- DSO reveals the average number of days it takes for the company to collect revenue after a sale. A lower DSO suggests quicker cash conversion.

3. Number of Days of Payables:
- The number of days of payables varied throughout the periods, with a downward trend from a high of 50.68 days on December 31, 2021, to 31.10 days by March 31, 2025.
- This ratio indicates the average number of days the company takes to pay its suppliers. A higher number of days suggests the company is taking longer to pay its bills.

Analyzing these activity ratios collectively can provide a comprehensive overview of how efficiently Dynatrace Holdings LLC is managing its inventory, collecting revenue, and paying its suppliers. A steady decrease in DOH and DSO, along with a controlled trend in payables, would indicate improving operational efficiency and effective management of working capital.

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Long-term

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales. Two key ratios in this category are Fixed Asset Turnover and Total Asset Turnover.

1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how well a company is using its fixed assets to generate revenue.
- Dynatrace Holdings LLC's Fixed Asset Turnover ratio has fluctuated over the years, ranging from 7.43 to 22.75.
- A higher Fixed Asset Turnover ratio indicates better efficiency in utilizing fixed assets to generate sales.
- Dynatrace Holdings LLC saw a significant increase in its Fixed Asset Turnover ratio from 2020 to 2022, reaching its peak at 22.75 in September 2022.

2. Total Asset Turnover:
- The Total Asset Turnover ratio evaluates how efficiently a company is using all its assets to generate revenue.
- Dynatrace Holdings LLC's Total Asset Turnover ratio has shown a generally increasing trend over the years, ranging from 0.28 to 0.47.
- A higher Total Asset Turnover ratio indicates that the company is effectively utilizing its total assets to generate sales.
- Dynatrace Holdings LLC experienced fluctuations in its Total Asset Turnover ratio over the years, with some periods showing improved efficiency in asset utilization.

In conclusion, based on the analysis of Dynatrace Holdings LLC's long-term activity ratios, the company has generally demonstrated an increasing trend in efficiency in utilizing both fixed and total assets to generate sales. The fluctuations observed in the ratios suggest that the company's asset utilization may vary over different periods. Investors and stakeholders may find these ratios useful in assessing the company's operational efficiency and performance.