EPAM Systems Inc (EPAM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.95 | 1.92 | 2.40 | 2.50 | 1.84 |
Based on the provided data, EPAM Systems Inc activity ratios can be analyzed as follows:
1. Inventory Turnover: The inventory turnover ratio for EPAM Systems Inc is not available for the years from 2020 to 2024. This ratio provides insight into how efficiently a company manages its inventory by measuring the number of times inventory is sold and replaced during a period.
2. Receivables Turnover: The receivables turnover ratio for EPAM Systems Inc is not available for the years from 2020 to 2024. This ratio evaluates how efficiently a company collects payments from its customers by measuring how many times receivables are collected and replaced during a period.
3. Payables Turnover: The payables turnover ratio for EPAM Systems Inc is not available for the years from 2020 to 2024. This ratio assesses how quickly a company pays its suppliers by measuring the number of times payables are paid and replaced during a period.
4. Working Capital Turnover: The working capital turnover ratio for EPAM Systems Inc has shown fluctuation over the years, with values of 1.84 in 2020, 2.50 in 2021, 2.40 in 2022, 1.92 in 2023, and 2.95 in 2024. This ratio indicates how efficiently the company utilizes its working capital to generate revenue, with higher values suggesting more effective utilization.
Overall, while specific information on inventory turnover, receivables turnover, and payables turnover is not available, the trend in the working capital turnover ratio indicates improvements in working capital efficiency for EPAM Systems Inc over the years analyzed.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The data provided does not include specific values for EPAM Systems Inc's Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables for the period from December 31, 2020, to December 31, 2024.
These activity ratios are critical in assessing the efficiency of a company's operations.
1. Days of Inventory on Hand (DOH) indicates how many days a company takes to sell its inventory. A lower DOH value generally suggests efficient inventory management and faster inventory turnover.
2. Days of Sales Outstanding (DSO) reflects the average number of days it takes for a company to collect revenue after making a sale. A lower DSO value indicates faster collection of receivables, which is favorable for cash flow management.
3. Number of Days of Payables represents the average number of days a company takes to pay its suppliers. A higher value indicates that the company is taking longer to settle its payables, potentially signaling strong bargaining power with suppliers or liquidity constraints.
Without specific numerical values, it is challenging to provide a detailed analysis of EPAM Systems Inc's performance in terms of these activity ratios. Investors and analysts typically use these ratios in conjunction with other financial indicators to assess the company's operational efficiency and financial health. An evaluation of trends over time and benchmarking against industry peers would provide a more comprehensive analysis of EPAM Systems Inc's performance in managing its inventory, receivables, and payables efficiently.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 17.65 | 8.93 | 15.69 |
| Total asset turnover | 1.00 | 1.08 | 1.20 | 1.07 | 0.98 |
Based on the provided data for EPAM Systems Inc, let's analyze the long-term activity ratios:
1. Fixed Asset Turnover:
- Fixed Asset Turnover measures the efficiency of a company in generating sales from its fixed assets. A higher ratio indicates better utilization of fixed assets.
- In 2020, EPAM Systems had a Fixed Asset Turnover of 15.69, indicating that each dollar of fixed assets generated $15.69 in sales.
- The ratio decreased to 8.93 in 2021, suggesting a potential decline in the efficiency of utilizing fixed assets to generate revenue.
- However, in 2022, the Fixed Asset Turnover improved significantly to 17.65, surpassing the 2020 level, which implies better asset utilization.
- The absence of data for 2023 and 2024 hinders a complete trend analysis, but the company should monitor this ratio closely to ensure optimal use of fixed assets.
2. Total Asset Turnover:
- Total Asset Turnover reflects how efficiently a company utilizes all its assets to generate revenue. A higher ratio indicates more effective asset utilization.
- In 2020, EPAM Systems had a Total Asset Turnover of 0.98, meaning each dollar of assets generated $0.98 in sales.
- The ratio improved to 1.07 in 2021, indicating a slight increase in the efficiency of asset turnover.
- Further improvement was observed in 2022, with the Total Asset Turnover reaching 1.20, signaling better utilization of assets to generate revenue.
- In 2023, the ratio decreased slightly to 1.08, but it remained relatively efficient.
- The ratio decreased further to 1.00 in 2024, potentially indicating a slight decline in asset turnover efficiency, which warrants monitoring in the future.
Overall, the analysis of EPAM Systems Inc's long-term activity ratios suggests fluctuations in asset turnover efficiency, with varying trends observed in Fixed Asset Turnover and Total Asset Turnover over the years. Management should focus on optimizing asset utilization to maintain or improve these ratios in the long run.