Entegris Inc (ENTG)

Short-term

Turnover ratios

Entegris Inc's activity ratios indicate the efficiency of the company's management in utilizing its resources to generate sales.

1. Inventory turnover: This ratio measures how many times a company's inventory is sold and replaced over a period. Entegris Inc's inventory turnover has fluctuated over the years, ranging from 2.32 to 3.34. A higher turnover indicates that the company is managing its inventory well and reducing the risk of obsolete or slow-moving stock.

2. Receivables turnover: This ratio reveals how quickly a company collects cash from its customers. Entegris Inc's receivables turnover has fluctuated between 6.13 to 7.71, showing a stable collection process. A higher turnover indicates efficient credit management and timely collection of accounts receivable.

3. Payables turnover: This ratio demonstrates how quickly a company pays its suppliers. Entegris Inc's payables turnover decreased from 15.10 to 9.08 over the years, suggesting a lengthening of the payment period. A lower turnover may indicate potential liquidity issues or a deliberate strategy to delay payments.

4. Working capital turnover: This ratio shows how effectively a company utilizes its working capital to generate revenue. Entegris Inc's working capital turnover has increased from 2.00 to 2.97, indicating improved efficiency in utilizing working capital to support sales growth. A higher turnover suggests better management of working capital resources.

Overall, the trend in Entegris Inc's activity ratios reflects a mixed performance in managing its resources to drive sales and efficiency in its operations. It is important for investors and stakeholders to monitor these ratios regularly to assess the company's operational effectiveness and financial health.

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Average number of days

Entegris Inc's activity ratios provide insights into its efficiency in managing inventory, receivables, and payables.

The Days of Inventory on Hand (DOH) ratio measures how many days it takes for the company to sell its inventory. Over the past five years, Entegris Inc's DOH has shown some fluctuation, ranging from 109.35 days to 157.34 days. A higher DOH indicates that inventory turnover is relatively slow, which may suggest overstocking or inefficiencies in inventory management.

The Days of Sales Outstanding (DSO) ratio, which measures how long it takes for the company to collect payments from customers, has also seen variability for Entegris Inc, ranging from 47.34 days to 59.55 days. A higher DSO indicates that the company is taking longer to collect payments, potentially impacting cash flow and liquidity.

The Number of Days of Payables ratio assesses how long the company takes to pay its suppliers. Entegris Inc's payables period has fluctuated between 24.18 days and 40.21 days over the same period. A shorter payables period may suggest a more aggressive payment strategy, while a longer period can indicate favorable payment terms with suppliers.

Overall, the analysis of Entegris Inc's activity ratios suggests potential areas for improvement in managing inventory levels, receivables collection, and supplier payment terms to enhance operational efficiency and cash flow management.

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Long-term

Entegris Inc's fixed asset turnover ratio, which measures the efficiency of the company in generating sales from its investment in fixed assets, has shown a gradual decline from 3.54 in 2020 to 2.00 in 2024. This suggests that the company's ability to generate revenue from its fixed assets has decreased over the years.

In contrast, the total asset turnover ratio, which indicates how effectively the company is using its total assets to generate revenue, has fluctuated over the same period. It increased from 0.64 in 2020 to 0.72 in 2021 before experiencing a notable drop to 0.32 in 2022. Subsequently, it slightly improved to 0.40 in 2023 and then decreased to 0.39 in 2024.

Overall, the declining trend in fixed asset turnover and the fluctuating pattern in total asset turnover suggest that Entegris Inc may be facing challenges in optimizing its asset utilization efficiency, particularly in terms of generating sales from both fixed and total assets. Further analysis and investigation into the company's operational and capital expenditure strategies may be warranted to address these performance trends.