Enovis Corp (ENOV)

Short-term

Turnover ratios

Enovis Corp's activity ratios reflect the efficiency of the company in managing its resources related to inventory, receivables, payables, and working capital turnover.

1. Inventory Turnover: The inventory turnover ratio indicates how many times a company has sold and replaced its inventory during a specific period. Enovis Corp's inventory turnover has decreased from 3.16 in 2020 to 1.69 in 2024. A declining trend in this ratio suggests that the company is taking longer to sell its inventory, which could indicate overstocking or slower sales.

2. Receivables Turnover: The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. In this case, the data shows that receivables turnover is not provided for any year, indicating a lack of information on how quickly the company is converting credit sales into cash.

3. Payables Turnover: The payables turnover ratio evaluates how efficiently a company is managing its accounts payable by measuring how quickly it pays its suppliers. Similar to receivables turnover, the data does not provide any information on Enovis Corp's payables turnover, making it difficult to assess the company's payment practices.

4. Working Capital Turnover: This ratio assesses how effectively a company is utilizing its working capital to generate revenue. Enovis Corp's working capital turnover has fluctuated over the years, ranging from 3.01 in 2021 to 6.80 in 2022. A higher turnover ratio indicates that the company is efficiently using its working capital to generate sales.

In conclusion, while Enovis Corp's working capital turnover shows varying levels of efficiency in utilizing resources, the lack of data on receivables and payables turnover ratios makes it challenging to provide a comprehensive analysis of the company's overall efficiency in managing its assets and liabilities. Further data or analysis would be needed to fully evaluate the company's activity ratios.

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Average number of days

Enovis Corp's activity ratios exhibit varying trends over the years:

1. Days of Inventory on Hand (DOH):
- The DOH increased from 115.65 days in 2020 to 238.86 days in 2023 and then slightly decreased to 215.46 days in 2024. This indicates that Enovis may be carrying excess inventory, which could tie up working capital and result in higher storage costs.

2. Days of Sales Outstanding (DSO):
- The DSO data is missing for all years, suggesting that specific information on how long it takes Enovis to collect payments from customers is not available. This makes it difficult to assess the efficiency of the company's accounts receivable management.

3. Number of Days of Payables:
- Similar to DSO, the number of days of payables data is unavailable for all years. This means that information on how long Enovis takes to pay its suppliers is not provided, making it challenging to evaluate the effectiveness of the company's payables management.

In conclusion, while the DOH data indicates a potential issue with inventory management, the absence of DSO and payables information hinders a comprehensive analysis of Enovis Corp's overall activity ratios and working capital cycle.

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Long-term

Long-term activity ratios reflect how efficiently a company utilizes its assets to generate sales revenue. Let's analyze the long-term activity ratios of Enovis Corp based on the provided data:

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company generates sales using its fixed assets. A higher ratio indicates better efficiency.
- In 2020, the fixed asset turnover ratio was 4.65, which increased to 5.46 in 2021 and further improved to 6.60 in 2022.
- However, there is no data available for 2023 and 2024, which makes it difficult to assess the trend beyond 2022.
- The increasing trend in fixed asset turnover from 2020 to 2022 suggests that Enovis Corp was utilizing its fixed assets more efficiently to generate sales revenue during this period.

2. Total Asset Turnover:
- The total asset turnover ratio measures how well a company generates sales from all its assets, including fixed and current assets. A higher ratio indicates efficient asset utilization.
- In 2020, the total asset turnover ratio was 0.42, which improved slightly to 0.45 in 2021, but then decreased to 0.37 in 2022.
- The ratio slightly increased to 0.38 in 2023 and then further rose to 0.45 in 2024, showing some improvement in asset utilization efficiency in the later years.
- The fluctuating trend in total asset turnover from 2020 to 2024 indicates varying levels of efficiency in generating sales revenue from all assets over the years.

In conclusion, Enovis Corp showed improvements in fixed asset turnover efficiency from 2020 to 2022. However, the total asset turnover ratio fluctuated during the same period, suggesting varying levels of efficiency in utilizing all assets for generating sales revenue. The absence of data for 2023 and 2024 limits a comprehensive trend analysis beyond 2022.