Exelixis Inc (EXEL)

Short-term

Turnover ratios

Exelixis Inc's activity ratios provide insights into how efficiently the company is managing its various operational aspects. Let's analyze the trends based on the data provided:

1. Inventory Turnover:
Exelixis Inc's inventory turnover has shown a consistent upward trend over the past five years, indicating that the company is managing its inventory more effectively. A higher inventory turnover ratio signifies that the company is selling its products quickly, which can lead to lower carrying costs and potential for higher profits.

2. Receivables Turnover:
The receivables turnover ratio has fluctuated over the years, with a slight increase in 2023 compared to the previous year. This ratio reflects how efficiently the company is collecting payments from its customers. A higher receivables turnover ratio suggests that the company is collecting its outstanding receivables more rapidly.

3. Payables Turnover:
Exelixis Inc's payables turnover has also shown variability, with a notable increase in 2023 compared to the previous year. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can be beneficial in terms of managing cash flow and working capital efficiently.

4. Working Capital Turnover:
The working capital turnover ratio has increased steadily over the past five years, suggesting that Exelixis Inc is generating more revenue relative to its working capital. A higher working capital turnover ratio indicates that the company is utilizing its working capital effectively to generate sales.

Overall, based on the activity ratios analyzed, Exelixis Inc appears to be improving its operational efficiency in terms of managing inventory, receivables, payables, and working capital. However, further analysis and comparison with industry benchmarks may provide a more comprehensive insight into the company's performance in these areas.

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Average number of days

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

1. Days of Inventory on Hand (DOH):
- Exelixis Inc has shown a decreasing trend in its DOH ratio over the last five years, dropping from 23.22 days in 2020 to 10.28 days in 2023.
- This indicates that the company has been able to efficiently manage its inventory levels, possibly by improving inventory turnover and reducing holding costs.

2. Days of Sales Outstanding (DSO):
- The DSO ratio of Exelixis Inc fluctuates over the period, with the highest value of 71.90 days in 2021 and the lowest value of 44.91 days in 2019.
- A decreasing DSO ratio suggests that the company is collecting its accounts receivable more quickly, which could indicate effective credit policies or a lower risk of bad debts.

3. Number of Days of Payables:
- Exelixis Inc has been effectively managing its payables, with fluctuations observed in the number of days of payables over the period.
- A lower number of days of payables indicates that the company is settling its obligations to suppliers more quickly, which could enhance relationships with suppliers and potentially lead to favorable credit terms.

Overall, the trends in these activity ratios suggest that Exelixis Inc has been improving its operational efficiency in managing inventory, collecting receivables, and paying suppliers, which is crucial for maintaining a healthy cash flow and sustainable growth.

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Long-term

Exelixis Inc's long-term activity ratios reflect the company's efficiency in utilizing its fixed assets and total assets to generate revenue over the past five years.

The fixed asset turnover ratio has shown a decreasing trend from 2019 to 2023, ranging from 19.79 to 13.79, indicating that the company's fixed assets are generating less revenue over time. While the ratios are still relatively high, this decreasing trend may suggest that Exelixis Inc's fixed asset utilization efficiency has declined.

On the other hand, the total asset turnover ratio has fluctuated over the same period, with values ranging from 0.46 to 0.62. The ratio has shown some improvement in recent years, reaching its highest point in 2023, indicating that the company is generating more revenue per dollar of total assets than in previous years. This suggests that Exelixis Inc is becoming more efficient in using its total assets to generate sales.

Overall, while the fixed asset turnover ratio has declined, the total asset turnover ratio has shown improvement, indicating mixed performance in asset utilization efficiency for Exelixis Inc over the past five years. Further analysis and comparison with industry benchmarks may provide deeper insights into the company's operational efficiency and financial performance.