ExlService Holdings Inc (EXLS)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover — 42.63 — — — 416.28 284.43 227.91 249.11 25.81 26.30 22.57 — 20.24 15.78 16.09 29.86 22.47 41.87 21.03
Receivables turnover 6.03 5.18 5.19 4.93 5.25 5.21 5.32 5.09 5.45 4.84 5.25 4.90 5.67 5.49 5.59 6.07 4.50 6.20 6.15 5.30
Payables turnover 281.12 374.60 493.06 460.94 275.35 429.20 436.01 377.02 156.62 331.40 249.54 215.13 171.14 249.14 174.49 78.26 92.75 104.17 73.95 84.80
Working capital turnover 3.64 3.44 4.08 4.10 4.58 4.58 4.33 5.19 4.22 4.55 4.24 3.36 13.42 3.29 3.06 2.43 2.46 2.53 2.76 2.86

ExlService Holdings Inc's activity ratios provide insights into how effectively the company manages its resources to generate sales and operate its business. Let's analyze the key activity ratios based on the provided data:

1. Inventory Turnover: ExlService's inventory turnover ratio fluctuated over the years, with a significant increase from 2022 to 2023, indicating a more efficient management of inventory during this period. However, the ratio spiked in December 2022 and March 2023, which may suggest potential issues with inventory management or demand forecasting.

2. Receivables Turnover: The receivables turnover ratio remained relatively stable, indicating consistent collection policies and efficient management of outstanding receivables. The uptick in December 2024 implies a quicker collection process at the end of the year.

3. Payables Turnover: ExlService's payables turnover ratio shows a varying trend, with a substantial increase from 2022 to 2023, indicating a more active management of payables during this period. The fluctuations suggest changes in payment terms with suppliers or changes in the company's working capital management strategies.

4. Working Capital Turnover: The working capital turnover ratio experienced fluctuations, with a notable increase from 2020 to 2021 and a significant surge in December 2021, reflecting possible improvements in the company's working capital efficiency. However, the ratio decreased in December 2024, indicating a potential slowdown in the utilization of working capital.

In conclusion, while ExlService Holdings Inc demonstrates effective management of receivables and payables, it should focus on maintaining a consistent inventory turnover and working capital turnover to sustain efficient operations and maximize profitability. Further analysis and monitoring of these activity ratios will help the company optimize its working capital management and operational efficiency.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days — 8.56 — — — 0.88 1.28 1.60 1.47 14.14 13.88 16.17 — 18.03 23.12 22.69 12.22 16.24 8.72 17.36
Days of sales outstanding (DSO) days 60.50 70.46 70.28 73.99 69.46 70.04 68.58 71.67 67.00 75.47 69.51 74.41 64.38 66.44 65.24 60.12 81.09 58.91 59.32 68.91
Number of days of payables days 1.30 0.97 0.74 0.79 1.33 0.85 0.84 0.97 2.33 1.10 1.46 1.70 2.13 1.47 2.09 4.66 3.94 3.50 4.94 4.30

ExlService Holdings Inc's activity ratios indicate its efficiency in managing inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):

- ExlService's DOH fluctuated significantly over the periods, ranging from a high of 23.12 days to a low of 0.88 days.
- A decreasing trend in DOH from June 2022 to December 2023 suggests efficient inventory management and potential stock shortages at the end of 2023.
- Notably, DOH was not reported for December 2021 and later, possibly due to data collection or reporting issues.

2. Days of Sales Outstanding (DSO):

- DSO shows the average number of days it takes for the company to collect revenue after a sale.
- ExlService's DSO varied between 58.91 days and 81.09 days, with fluctuations occurring across the periods.
- An increasing DSO trend from December 2021 to March 2024 may indicate potential challenges in collecting receivables efficiently.

3. Number of Days of Payables:

- The number of days of payables represents how long the company takes to pay its suppliers.
- ExlService's payables days ranged from 0.74 days to 4.94 days, indicating a relatively short duration for settling its payables.
- A decreasing trend in payables days was observed over the periods, suggesting a more efficient management of payables and potential cash flow benefits.

Overall, ExlService Holdings Inc's activity ratios reflect varying levels of efficiency in managing inventory, receivables, and payables over the periods, with considerations for potential operational improvements and impact on working capital management.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 18.34 16.44 16.44 16.45 16.26 16.46 16.47 17.19 17.15 16.79 15.20 13.80 12.91 12.68 11.86 10.74 10.32 10.27 10.64 10.95
Total asset turnover 1.13 1.10 1.13 1.15 1.12 1.13 1.13 1.13 1.05 1.01 0.97 0.92 0.86 0.91 0.87 0.79 0.76 0.79 0.81 0.78

ExlService Holdings Inc's fixed asset turnover ratio has shown a consistent upward trend over the years, increasing from 10.95 in March 2020 to 18.34 in December 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets.

The total asset turnover ratio has also displayed a positive trajectory, rising from 0.78 in March 2020 to 1.13 in June 2024. This suggests that ExlService Holdings Inc is effectively utilizing its total assets to generate sales.

Overall, the improving fixed asset turnover and total asset turnover ratios reflect the company's efficient asset utilization and operational performance over the analyzed period.