Exelixis Inc (EXEL)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 35.52 23.91 19.93 18.30 15.55 18.53 14.48 15.99 16.53 15.36 15.68 14.87 14.07 14.08 17.36 16.38 19.68 18.31 13.33 15.46
Receivables turnover 7.71 7.15 7.36 7.11 7.50 7.62 6.61 7.98 5.08 6.99 6.73 5.80 6.14 5.77 8.25 7.13 8.13 5.63 9.33 7.95
Payables turnover 18.22 22.58 21.95 16.78 15.85 16.19 23.92 26.33 18.74 17.84 19.15 26.64 12.48 5.68 31.67 16.48 21.89 29.30 13.41 16.08
Working capital turnover 1.98 1.66 1.37 1.27 1.24 1.06 1.01 0.98 0.96 0.90 0.86 0.84 0.80 0.79 0.80 0.98 1.11 1.15 1.07 1.04

The activity ratios of Exelixis Inc over the past five years show varying levels of efficiency in managing its resources.

1. Inventory turnover: Exelixis Inc has shown a generally increasing trend in inventory turnover, indicating that the company is efficiently managing its inventory levels and converting them into sales. The ratio has significantly improved from 13.33 in Mar 2019 to 35.52 in Dec 2023, suggesting effective inventory management practices.

2. Receivables turnover: The receivables turnover ratio measures how efficiently the company collects payments from its customers. Exelixis Inc has demonstrated relatively stable performance in this aspect, with some fluctuations between quarters. The ratio peaked at 9.33 in Sep 2019 and has since remained within a range of 5.08 to 8.25, signifying consistent efforts in managing accounts receivables.

3. Payables turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. Exelixis Inc has shown fluctuating levels in payables turnover over the years but generally maintained a healthy turnover rate. The ratio has varied between 5.68 and 31.67, with a noticeable spike in Jun 2022, suggesting potential changes in payment terms with suppliers.

4. Working capital turnover: This ratio measures how efficiently the company utilizes its working capital to generate sales. Exelixis Inc has displayed a gradual increase in working capital turnover over the years, indicating improved efficiency in using its resources to drive revenue growth. The ratio has risen from 0.79 in Sep 2020 to 1.98 in Dec 2023, reflecting better working capital management.

Overall, the activity ratios suggest that Exelixis Inc has made efforts to enhance operational efficiency and effectively manage its resources to support business operations and growth.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 10.28 15.27 18.32 19.94 23.47 19.70 25.22 22.83 22.07 23.76 23.28 24.54 25.95 25.92 21.03 22.29 18.55 19.93 27.38 23.62
Days of sales outstanding (DSO) days 47.35 51.04 49.57 51.32 48.66 47.90 55.26 45.75 71.90 52.25 54.20 62.91 59.46 63.31 44.26 51.19 44.91 64.82 39.13 45.93
Number of days of payables days 20.03 16.17 16.63 21.75 23.03 22.55 15.26 13.86 19.48 20.46 19.06 13.70 29.24 64.30 11.52 22.15 16.67 12.46 27.21 22.70

Exelixis Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): Exelixis Inc's DOH has shown some variability over the periods, ranging from a low of 10.28 days to a high of 27.38 days. A lower DOH indicates efficient inventory management, enabling the company to quickly convert inventory into sales. It is noteworthy that the DOH decreased from 2022 to 2023, suggesting improved efficiency in managing inventory levels.

2. Days of Sales Outstanding (DSO): Exelixis Inc's DSO also fluctuated over the periods, with values ranging from 39.13 days to 71.90 days. A lower DSO indicates faster collection of accounts receivable, reflecting a more efficient credit and collection process. It is important to note that the DSO decreased from 2021 to 2022, indicating a potential improvement in the company's credit policies.

3. Number of Days of Payables: The number of days of payables for Exelixis Inc ranged from 11.52 days to 64.30 days. A higher number of days of payables suggests the company is taking longer to pay its suppliers, potentially indicating a more favorable position for working capital management. Notably, the number of days of payables increased from 2022 to 2023, which could imply a shift in the company's payment terms or the negotiation of more favorable supplier agreements.

Overall, a continuous analysis of these activity ratios can provide valuable insights into Exelixis Inc's operational efficiency, cash flow management, and working capital strategies.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 14.22 14.66 14.91 14.32 14.56 15.18 14.33 14.32 13.79 12.56 12.16 13.14 14.66 16.99 19.08 20.19 19.79 19.33 17.94 16.92
Total asset turnover 0.62 0.60 0.55 0.53 0.52 0.55 0.54 0.57 0.55 0.51 0.49 0.47 0.46 0.45 0.49 0.50 0.51 0.54 0.55 0.55

Exelixis Inc's fixed asset turnover ratio has been consistently high, ranging from 12.16 to 20.19 over the past five years, indicating that the company generates significant revenue relative to its investment in fixed assets. This reflects efficient utilization of its long-term assets to generate sales. The trend suggests that Exelixis has been effective in managing and leveraging its fixed assets to drive revenue growth.

On the other hand, the total asset turnover ratio has shown variability, ranging from 0.45 to 0.62 over the same period. The ratio indicates how efficiently the company is using all its assets to generate revenue. While the ratio fluctuates, it generally remains within a reasonable range. However, there seems to be a slight downward trend over the years, which could indicate potential challenges in efficiently using its total assets to generate sales.

In conclusion, Exelixis Inc's strong fixed asset turnover ratio highlights its effective management of long-term assets, while the fluctuations in total asset turnover ratio may warrant further investigation into the company's overall asset utilization efficiency.