Fulgent Genetics Inc (FLGT)
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 | 31.71 | 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 | 50.93 | 54.27 | 29.55 | 25.75 |
| Receivables turnover | 5.51 | 5.68 | 8.61 | 8.22 | 8.53 | 7.66 | 6.87 | 5.89 | 7.07 | 8.45 | 6.06 | 3.57 | 2.09 | 1.36 | 3.15 | 5.45 | 4.95 | 5.61 | 4.50 | 4.82 |
| Payables turnover | 12.03 | 12.31 | 10.14 | 10.04 | 10.92 | 17.92 | 6.56 | 9.25 | 10.52 | 8.25 | 12.75 | 9.16 | 3.39 | 2.23 | 5.31 | 5.32 | 8.92 | 6.16 | 10.19 | 7.48 |
| Working capital turnover | 0.67 | 0.59 | 0.66 | 0.73 | 1.15 | 1.35 | 1.69 | 1.53 | 1.96 | 2.18 | 2.04 | 1.67 | 1.07 | 0.98 | 1.26 | 1.12 | 0.98 | 0.85 | 0.79 | 0.67 |
Fulgent Genetics Inc's activity ratios provide insights into the efficiency of its operations and management of its resources.
1. Inventory Turnover:
- Fulgent Genetics' inventory turnover has been fluctuating over the quarters, indicating potential changes in sales volume or inventory management practices.
- A higher inventory turnover ratio indicates that the company is selling its products quickly, which is generally a positive sign. However, the significant decline in Q4 2022 compared to previous quarters may warrant further investigation into potential inventory management issues.
2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently Fulgent Genetics is collecting payments from customers.
- The ratios have been relatively stable, ranging from 5.24 to 8.24, indicating consistent collection practices.
- A higher receivables turnover indicates that the company is collecting payments quickly, which is favorable for cash flow and liquidity.
3. Payables Turnover:
- The payables turnover ratio shows how quickly Fulgent Genetics is paying its suppliers.
- The ratios have been relatively stable, with a slight increase in Q4 2023 compared to the previous quarters.
- A higher payables turnover ratio suggests that the company is managing its payables effectively, potentially benefitting from extended payment terms or negotiating discounts.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate revenue.
- The declining trend in the ratios indicates that Fulgent Genetics may be generating less revenue per unit of working capital over time.
- A higher working capital turnover ratio indicates better efficiency in utilizing resources for revenue generation.
Overall, analyzing these activity ratios can provide valuable insights into Fulgent Genetics' operational efficiency, inventory management, working capital utilization, and relationship with customers and suppliers.
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 | 11.51 | 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 | 7.17 | 6.73 | 12.35 | 14.17 |
| Days of sales outstanding (DSO) | days | 66.20 | 64.22 | 42.41 | 44.38 | 42.80 | 47.67 | 53.12 | 61.93 | 51.60 | 43.21 | 60.19 | 102.18 | 174.55 | 267.68 | 116.02 | 66.94 | 73.73 | 65.12 | 81.11 | 75.75 |
| Number of days of payables | days | 30.34 | 29.64 | 36.00 | 36.35 | 33.44 | 20.37 | 55.65 | 39.47 | 34.71 | 44.24 | 28.63 | 39.83 | 107.65 | 163.58 | 68.79 | 68.58 | 40.91 | 59.26 | 35.83 | 48.79 |
Fulgent Genetics Inc's activity ratios provide insights into how efficiently the company is managing its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
DOH measures how many days it takes for the company to sell its entire inventory. A lower DOH indicates that Fulgent Genetics is effectively managing its inventory levels. From Q1 2022 to Q4 2023, DOH has fluctuated, with a peak in Q3 2022 at 17.91 days and a low in Q1 2023 at 6.20 days. The recent trend shows a slight increase in DOH, implying that inventory turnover has slowed down compared to earlier in the year.
2. Days of Sales Outstanding (DSO):
DSO reflects the average number of days it takes for Fulgent Genetics to collect payment after making a sale. A lower DSO is preferable as it indicates that the company is collecting cash more quickly. Over the past few quarters, DSO has varied, with a notable increase in Q3 2023 at 69.62 days compared to 44.29 days in Q4 2022. This indicates that the company may be experiencing challenges in collecting accounts receivable efficiently.
3. Number of Days of Payables:
The number of days of payables measures how long Fulgent Genetics takes to pay its suppliers. A longer period indicates that the company is taking longer to settle its payables. The data shows fluctuations in the number of days of payables, with the longest period in Q2 2022 at 55.65 days and the shortest in Q4 2022 at 33.44 days. The recent trend indicates that the company is taking slightly longer to pay its suppliers compared to earlier in the year.
In summary, while Fulgent Genetics has shown improvements in managing its inventory levels, there are signs of challenges in efficiently collecting accounts receivable and paying suppliers promptly. Monitoring and improving these activity ratios can help the company optimize its working capital and enhance overall operational efficiency.
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 | 3.47 | 3.36 | 3.51 | 4.61 | 7.61 | 9.81 | 10.75 | 13.89 | 15.94 | 17.22 | 17.81 | 16.46 | 10.49 | 7.77 | 7.28 | 6.13 | 5.44 | 4.66 | 4.23 | 3.65 |
| Total asset turnover | 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 | 0.37 | 0.49 | 0.44 | 0.40 |
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. Fulgent Genetics Inc's fixed asset turnover has been declining over the quarters, indicating that the company is less efficient in utilizing its fixed assets to generate sales. This trend may suggest that the company is not effectively utilizing its long-term assets to drive revenue.
On the other hand, the total asset turnover ratio measures how well a company utilizes all its assets to generate sales. Fulgent Genetics Inc's total asset turnover also shows a decreasing trend over the quarters, implying that the company's overall asset utilization efficiency is decreasing. This could signify that the company is struggling to generate sales relative to its total asset base.
In conclusion, based on the long-term activity ratios, Fulgent Genetics Inc's efficiency in generating sales from both fixed and total assets appears to be declining over the quarters. This trend could raise concerns about the company's asset utilization and operational effectiveness in the long term.