Exelixis Inc (EXEL)

Short-term

Turnover ratios

Exelixis Inc's inventory turnover ratio has shown some fluctuations over the years, ranging from 14.08 to 35.52. The company's inventory turnover has generally been increasing, indicating that they are able to sell and replace their inventory more efficiently.

In terms of receivables turnover, Exelixis Inc's ratio has ranged from 5.08 to 8.25. The company's ability to collect outstanding receivables has shown some variability, with a slight decreasing trend in recent periods.

The payables turnover ratio for Exelixis Inc has varied from 5.68 to 31.67, indicating the pace at which the company pays its suppliers. The ratio has shown significant fluctuations, possibly due to changes in payment terms with suppliers or changes in purchasing strategies.

The working capital turnover ratio, which reflects how effectively the company is using its working capital to generate sales, has generally increased for Exelixis Inc over the years, ranging from 0.79 to 2.04. This indicates that the company is generating more revenue relative to its working capital, which is a positive sign of efficiency.

In summary, Exelixis Inc's activity ratios suggest improvements in inventory management efficiency and working capital utilization, though there are some fluctuations in receivables and payables turnover that may require further investigation.

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Average number of days

Exelixis Inc's Days of Inventory on Hand (DOH) ratio shows how efficiently the company manages its inventory. The trend indicates a fluctuation in inventory management over time, ranging from a high of 25.95 days in December 2020 to a low of 10.28 days in December 2023. A decreasing trend in DOH is generally positive as it suggests better inventory turnover and management efficiency.

The Days of Sales Outstanding (DSO) ratio reveals the average number of days it takes for the company to collect payment after making a sale. The DSO shows variability, with the highest value of 71.90 days in December 2021 and the lowest value of 44.67 days in December 2024. A decreasing trend in DSO is preferable as it indicates faster cash conversion and efficient accounts receivable management.

The Number of Days of Payables ratio reflects the average number of days it takes for the company to pay its creditors. The trend in this ratio also fluctuates, with the highest value of 64.30 days in September 2020 and the lowest value of 11.52 days in June 2020. A lower number of days of payables can suggest that the company is settling its obligations more promptly.

Overall, monitoring these activity ratios is crucial for evaluating Exelixis Inc's operational efficiency, cash flow management, and working capital performance over time. By analyzing these ratios, stakeholders can assess how effectively the company is managing its inventory, accounts receivable, and accounts payable to optimize its financial performance.

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Long-term

Exelixis Inc's long-term activity ratios provide insights into how effectively the company is utilizing its assets to generate sales revenue.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company is using its fixed assets to generate sales.
- Exelixis Inc's fixed asset turnover ratio has been gradually decreasing from 20.19 on March 31, 2020, to 18.16 on December 31, 2024.
- A high fixed asset turnover ratio indicates better utilization of fixed assets to generate sales, which was the case initially for Exelixis Inc, but the ratio has been declining over time.
- A decreasing trend in fixed asset turnover could indicate either a decrease in sales revenue generated by fixed assets or an increase in the book value of the fixed assets.

2. Total Asset Turnover:
- The total asset turnover ratio evaluates how effectively the company is using all of its assets to generate sales.
- Exelixis Inc's total asset turnover ratio has shown fluctuations but an overall increasing trend from 0.50 on March 31, 2020, to 0.74 on December 31, 2024.
- The increasing trend in the total asset turnover ratio indicates that the company has been more efficient in generating sales revenue relative to its total assets over time.
- This improvement could be attributed to better management of inventory, receivables, and other working capital management practices.

In conclusion, while Exelixis Inc's total asset turnover ratio has improved over the years, its fixed asset turnover ratio has been declining. This discrepancy suggests that the company may need to further assess its utilization of fixed assets to enhance operational efficiency and profitability.