Fulgent Genetics Inc (FLGT)
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 | 21.50 | 21.21 | 26.04 | 28.14 | 32.04 | 39.82 | 37.77 | 46.95 | 58.89 | 34.56 | 20.38 | 20.65 | 17.66 | 9.35 | 7.41 | 6.22 | 5.45 | 2.35 | 8.95 | 9.93 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 1.01 | 1.10 | 0.90 | 0.93 | 0.67 | 0.59 | 0.66 | 0.45 | 0.78 | 0.89 | 1.69 | 0.88 | 1.03 | 2.18 | 1.14 | 1.67 | 0.87 | 1.01 | 5.89 | 0.51 |
Fulgent Genetics Inc's Inventory turnover ratio has shown significant fluctuations over the years, starting at 9.93 in March 2020 and reaching a peak of 58.89 by December 2022. This indicates that the company has been able to manage its inventory efficiently and convert it into sales. However, there was a slight decline in the ratio to 21.50 by December 2024, indicating a potential buildup of inventory.
The Receivables turnover and Payables turnover ratios are not available in the data provided, suggesting that there may be limited information on the company's efficiency in collecting receivables and paying off its obligations.
The Working capital turnover ratio has shown fluctuations as well, ranging from 0.45 in March 2023 to 2.18 in September 2021. This ratio measures how effectively the company is using its working capital to generate revenue. A higher ratio indicates better utilization of working capital. Fulgent Genetics Inc's working capital turnover ratio has been inconsistent, signaling potential inefficiencies in managing its working capital.
Overall, Fulgent Genetics Inc's activity ratios highlight fluctuations in inventory turnover and working capital turnover over the years, emphasizing the importance of closely monitoring these ratios to assess the company's operational efficiency and financial performance.
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 | 16.98 | 17.21 | 14.02 | 12.97 | 11.39 | 9.17 | 9.66 | 7.77 | 6.20 | 10.56 | 17.91 | 17.67 | 20.67 | 39.05 | 49.27 | 58.66 | 67.02 | 155.46 | 40.77 | 36.77 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Fulgent Genetics Inc's activity ratios provide insights into its inventory management and efficiency in collecting receivables.
1. Days of Inventory on Hand (DOH):
- The DOH decreased significantly from 155.46 days in September 2020 to 6.20 days in December 2022, indicating enhanced inventory turnover efficiency.
- The trend suggests the company has been able to manage its inventory levels more effectively, potentially reducing carrying costs and minimizing the risk of obsolete inventory.
- There was a slight increase in DOH to 16.98 days by December 2024, which may need monitoring to ensure inventory levels remain optimized.
2. Days of Sales Outstanding (DSO):
- The DSO data is not provided, which hinders the assessment of Fulgent Genetics' effectiveness in collecting receivables.
- Without information on DSO, it is challenging to evaluate the company's credit policies, collection efficiency, and overall cash flow management.
3. Number of Days of Payables:
- Data on the number of days of payables is not available, depriving us of the ability to assess the company's payment practices to suppliers.
- Understanding the Days Payable Outstanding would have been crucial in evaluating Fulgent Genetics' liquidity management and potential cash flow implications.
Overall, while the information on inventory turnover is positive, the lack of DSO and days of payables data limits a comprehensive assessment of Fulgent Genetics Inc's overall activity ratios and working capital management effectiveness.
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 | — | — | — | — | — | — | 3.51 | 4.61 | 6.26 | 9.81 | 10.75 | 13.89 | 15.94 | 17.22 | 17.08 | 16.46 | 10.49 | 7.77 | 4.96 | 4.25 |
| Total asset turnover | 0.23 | 0.23 | 0.24 | 0.23 | 0.23 | 0.21 | 0.23 | 0.27 | 0.45 | 0.57 | 0.63 | 0.65 | 0.78 | 0.86 | 0.87 | 0.77 | 0.60 | 0.55 | 0.46 | 0.39 |
The Fixed Asset Turnover ratio measures how efficiently Fulgent Genetics Inc is utilizing its fixed assets to generate sales. From March 2020 to June 2021, the company experienced a consistent increase in the Fixed Asset Turnover ratio, reaching a peak of 17.22 in September 2021. This indicates that the company was able to generate a substantial amount of revenue relative to its investment in fixed assets during this period.
However, from September 2021 onwards, the Fixed Asset Turnover ratio started to decline, indicating a potential decrease in the efficiency of utilizing fixed assets to generate sales. By December 2022, the ratio dropped to 6.26 and continued to decrease to 3.51 by June 2023. This declining trend suggests that the company may be facing challenges in optimizing its fixed assets to drive sales growth.
On the other hand, the Total Asset Turnover ratio reflects Fulgent Genetics Inc's overall efficiency in generating sales from all its assets. The ratio showed a steady increase from March 2020 to June 2021, reaching a peak of 0.87 in June 2021. This indicates that the company was successfully leveraging its total assets to drive revenue growth during this period.
However, from September 2021 onwards, the Total Asset Turnover ratio began to decline, falling to 0.23 by December 2023. This decline suggests a decreasing efficiency in generating sales from total assets, which could be a concern for the company's overall operational performance.
In conclusion, while Fulgent Genetics Inc demonstrated strong efficiency in utilizing fixed assets to generate sales in the earlier periods, there are indications of declining efficiency in both fixed and total asset turnover ratios in recent periods. This trend highlights the importance of closely monitoring asset utilization to maintain operational effectiveness and drive sustainable growth.