ExlService Holdings Inc (EXLS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 249.11 | 26.82 | 39.06 |
| Receivables turnover | 6.04 | 5.25 | 5.45 | 5.67 | 4.49 |
| Payables turnover | 281.12 | 275.35 | 156.62 | 171.14 | 121.34 |
| Working capital turnover | 3.64 | 4.58 | 4.22 | 13.42 | 2.45 |
The activity ratios of ExlService Holdings Inc provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover:
- The inventory turnover has shown variability over the years, with a significant increase from 2021 to 2022, reaching a high of 249.11. This indicates that the company is selling its inventory more quickly in 2022 compared to previous years, which can be a positive sign of effective inventory management and sales strategy.
2. Receivables Turnover:
- The receivables turnover has been relatively stable over the years, indicating that the company is efficiently collecting its accounts receivable. The increasing trend from 2020 to 2024 suggests improvement in the efficiency of the company in converting credit sales into cash.
3. Payables Turnover:
- The payables turnover has been increasing consistently from 2020 to 2024, reaching a high of 281.12. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which may imply better cash management and favorable credit terms with suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate revenue. The fluctuation in this ratio from 2020 to 2024 suggests changes in the company's operating cycle efficiency.
In conclusion, based on these activity ratios, ExlService Holdings Inc appears to have improved efficiency in managing its inventory, receivables, payables, and working capital over the years. However, further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of the company's operational performance.
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 | — | — | 1.47 | 13.61 | 9.34 |
| Days of sales outstanding (DSO) | days | 60.39 | 69.46 | 67.00 | 64.38 | 81.23 |
| Number of days of payables | days | 1.30 | 1.33 | 2.33 | 2.13 | 3.01 |
ExlService Holdings Inc's activity ratios show changes in its operational efficiency over the years based on the provided data.
1. Days of Inventory on Hand (DOH):
- The company's DOH increased from 9.34 days in December 2020 to 13.61 days in December 2021, indicating that it held inventory for a longer period in 2021.
- However, there was a significant improvement in inventory management as the DOH decreased to 1.47 days by December 2022, suggesting a more efficient inventory turnover.
- The absence of data for 2023 and 2024 prevents further analysis of this trend.
2. Days of Sales Outstanding (DSO):
- The DSO decreased from 81.23 days in December 2020 to 64.38 days in December 2021, reflecting a faster collection of receivables in 2021.
- The DSO increased slightly to 67.00 days in December 2022 and further to 69.46 days in December 2023, indicating a slower collection of receivables in these years.
- The DSO then improved to 60.39 days by December 2024, suggesting a more efficient accounts receivable management compared to the previous year.
3. Number of Days of Payables:
- The number of days of payables decreased from 3.01 days in December 2020 to 2.13 days in December 2021, indicating a faster payment cycle in 2021.
- There was a slight increase to 2.33 days in December 2022 but a significant drop to 1.33 days by December 2023, suggesting more efficient management of payables.
- The number of days of payables further decreased to 1.30 days by December 2024, indicating a continued trend towards a shorter payment cycle.
Overall, ExlService Holdings Inc showed varying levels of operational efficiency in managing its inventory, receivables, and payables over the years based on the activity ratios provided. The company displayed improvements in inventory turnover and payable management, but there were fluctuations in receivables collection efficiency during this period.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 18.37 | 16.26 | 17.15 | 12.91 | 10.30 |
| Total asset turnover | 1.14 | 1.12 | 1.05 | 0.86 | 0.76 |
ExlService Holdings Inc's long-term activity ratios indicate a positive trend in efficiency over the years, as seen through the Fixed Asset Turnover and Total Asset Turnover ratios. The Fixed Asset Turnover ratio has increased steadily, from 10.30 in 2020 to 18.37 in 2024, reflecting the company's ability to generate sales revenue relative to its investment in fixed assets. This indicates that ExlService Holdings Inc is utilizing its fixed assets more effectively to generate revenue.
Similarly, the Total Asset Turnover ratio has also shown a consistent improvement, rising from 0.76 in 2020 to 1.14 in 2024. This suggests that the company is becoming more efficient in utilizing all its assets to generate sales, indicating improved operational efficiency and asset utilization.
Overall, the increasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios signifies ExlService Holdings Inc's ability to generate more sales revenue per dollar of assets invested, thus reflecting positively on the company's operational efficiency and management of its assets.