Fulgent Genetics Inc (FLGT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 21.02 | 31.71 | 58.89 | 17.66 | 5.45 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.01 | 0.67 | 0.78 | 1.03 | 0.87 |
Based on the activity ratios provided for Fulgent Genetics Inc, we can derive several insights:
1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company is managing its inventory. Fulgent Genetics has shown a significant improvement in its inventory turnover over the years, with a ratio that increased from 5.45 in 2020 to 21.02 in 2024. This indicates that the company is selling its inventory more quickly.
2. Receivables Turnover:
- The data shows that the receivables turnover ratio is not available for any of the years provided. This could imply that the company might not have significant accounts receivable balances or that the data was not disclosed. Without this information, it is challenging to assess how effectively Fulgent Genetics is collecting payments from its customers.
3. Payables Turnover:
- Similar to receivables turnover, the payables turnover ratio is not provided for any of the years. This limits our ability to evaluate how efficiently the company is managing its accounts payable.
4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company is using its working capital to generate sales. Fulgent Genetics has shown fluctuations in this ratio over the years, with values ranging from 0.67 to 1.03. A higher ratio indicates that the company is utilizing its working capital more efficiently to generate revenue and reflects positively on its operational performance.
In conclusion, while Fulgent Genetics has demonstrated an improvement in inventory turnover and varying levels of working capital turnover, the lack of data for receivables and payables turnover hinders a comprehensive analysis of the company's overall efficiency in managing its operating cycle.
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 | 17.36 | 11.51 | 6.20 | 20.67 | 67.02 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Fulgent Genetics Inc's Days of Inventory on Hand (DOH) has shown a declining trend over the years, from 67.02 days in December 2020 to 17.36 days in December 2024. This indicates that the company has been managing its inventory more efficiently, holding less stock on hand relative to its sales.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available, which limits the ability to comprehensively assess Fulgent Genetics Inc's overall liquidity and efficiency in managing receivables and payables.
Overall, based on the provided data, Fulgent Genetics Inc has significantly improved its inventory management by reducing the number of days inventory is held, which can lead to cost savings and improved cash flow in the long run. However, a more thorough analysis incorporating DSO and payables turnover ratios would provide a more comprehensive view of the company's overall operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 6.26 | 15.94 | 10.49 |
| Total asset turnover | 0.23 | 0.23 | 0.45 | 0.78 | 0.60 |
The fixed asset turnover ratio provides insight into how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Fulgent Genetics Inc, the fixed asset turnover ratio has shown a fluctuating trend over the years. It increased from 10.49 in 2020 to 15.94 in 2021, indicating that the company was generating more revenue per dollar invested in fixed assets. However, there was a significant drop in 2022 to 6.26, suggesting a potential inefficiency in utilizing fixed assets.
On the other hand, the total asset turnover ratio measures how effectively a company is using its total assets to generate revenue. Fulgent Genetics Inc's total asset turnover ratio has been on a decreasing trend from 0.60 in 2020 to 0.23 in both 2023 and 2024. This indicates that the company's ability to generate revenue from its total assets has been declining, which may raise concerns about the efficiency of the company's overall asset utilization.
Overall, the analysis of Fulgent Genetics Inc's long-term activity ratios suggests a fluctuating trend in fixed asset turnover and a decreasing trend in total asset turnover, which may warrant further investigation into the company's asset management strategies and operational efficiency.