Dynavax Technologies Corporation (DVAX)

Short-term

Turnover ratios

Activity ratios provide insight into how efficiently a company is managing its assets and liabilities. Let's analyze Dynavax Technologies Corp.'s activity ratios over the past five years:

1. Inventory turnover: This ratio indicates how many times a company's inventory is sold and replaced over a period. Dynavax's inventory turnover has fluctuated significantly, with the lowest being in 2020 at 0.22 and the highest in 2022 at 4.41. A lower turnover may suggest inefficient inventory management or slow sales.

2. Receivables turnover: This ratio measures how quickly a company collects on its credit sales. Dynavax has shown a consistent improvement in receivables turnover over the years, indicating that the company has been collecting its receivables more efficiently.

3. Payables turnover: This ratio shows how many times a company pays off its accounts payable during a period. Dynavax's payables turnover has varied widely, reaching a peak in 2022 at 81.64. A high turnover can indicate that the company is paying off its suppliers quickly.

4. Working capital turnover: This ratio reflects how effectively a company is utilizing its working capital to generate sales. Dynavax's working capital turnover has generally been low, indicating that the company may not be efficiently utilizing its working capital to generate revenue.

Overall, Dynavax Technologies Corp. has shown varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the past five years. Further analysis and comparison with industry benchmarks would provide more insight into the company's operational efficiency and financial health.

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Average number of days

The activity ratios for Dynavax Technologies Corp. provide insights into the efficiency of the company's operations in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- The trend for Days of Inventory on Hand has been fluctuating over the years, reaching the highest level in 2020 and 2019, which indicates that the company was holding inventory for an extended period during those years.
- In 2023, the DOH increased significantly to 387.72 days, implying that Dynavax Technologies Corp. is holding inventory for a longer time compared to the previous year.
- The higher DOH may suggest potential issues in inventory management, such as overstocking or slow-moving inventory, which could tie up working capital and lead to increased storage costs.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding have shown some variability, with the highest level observed in 2020. This metric represents the average number of days it takes for the company to collect payment from its customers.
- In 2023, the DSO decreased to 69.98 days, indicating an improvement in the collection period compared to the previous year.
- A lower DSO suggests that the company is collecting its receivables more efficiently, which could lead to improved cash flow and working capital management.

3. Number of Days of Payables:
- The trend in the Number of Days of Payables has also been fluctuating over the years, with the highest level recorded in 2019.
- In 2023, the Number of Days of Payables increased to 38.16 days, indicating that the company is taking longer to pay its suppliers compared to the previous year.
- A longer payment period could potentially strain relationships with suppliers or signal financial difficulties if the company is intentionally delaying payments.

Overall, analyzing these activity ratios in conjunction with other financial metrics can provide a more comprehensive picture of Dynavax Technologies Corp.'s operational efficiency and liquidity management. A careful assessment of these ratios can help identify areas for improvement and inform strategic decision-making within the company.

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Long-term

The fixed asset turnover for Dynavax Technologies Corp. has shown significant fluctuations over the years. In 2023, the company's fixed asset turnover ratio was 6.23, indicating that the company generated $6.23 in revenue for every $1 invested in fixed assets. This represents a decrease from the exceptionally high ratio of 19.22 in 2022. The substantial drop in 2023 may indicate potential inefficiencies or changes in the utilization of fixed assets within the company.

In terms of total asset turnover, the company's performance has also varied notably. The total asset turnover ratio was 0.23 in 2023, indicating that the company generated $0.23 in revenue for every $1 in total assets. This represents a decrease from 0.73 in 2022 and 0.42 in 2021. The declining trend in total asset turnover suggests that the company may be becoming less efficient in generating revenue from its total asset base.

Overall, the long-term activity ratios of Dynavax Technologies Corp. suggest a mixed picture of asset utilization efficiency. The fluctuations in both fixed asset turnover and total asset turnover ratios imply changes in the company's operational efficiency and effectiveness in managing its assets over the past few years. Further analysis and investigation may be required to understand the underlying factors driving these fluctuations and their potential implications for the company's financial performance.