FormFactor Inc (FORM)
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 | 4.49 | 4.18 | 3.65 | 3.72 | 3.62 | 3.81 | 3.62 | 3.84 | 3.61 | 3.32 | 3.04 | 3.50 | 4.01 | 3.92 | 3.95 | 4.03 | 4.09 | 4.13 | 4.27 | 4.63 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 1.61 | 1.53 | 1.47 | 1.45 | 1.50 | 1.75 | 1.89 | 2.04 | 2.30 | 2.23 | 2.11 | 1.94 | 2.05 | 2.20 | 2.18 | 2.05 | 2.09 | 2.11 | 1.92 | 2.00 |
FormFactor Inc's inventory turnover ratio has shown a declining trend over the period from March 31, 2020, to December 31, 2024, indicating that the company is taking longer to sell its inventory. This could suggest potential issues with inventory management or declining demand for its products.
The receivables turnover ratio and payables turnover ratio are not provided for the period under consideration, indicating that data on the company's efficiency in collecting receivables and paying its suppliers are not available for analysis.
Regarding the working capital turnover ratio, there is a fluctuating pattern observed from March 31, 2020, to December 31, 2024. The ratio initially increased, indicating an improvement in utilizing working capital to generate sales. However, it started to decline from March 31, 2023, indicating a decrease in efficiency in utilizing working capital to generate revenue. This could be a sign of inefficiencies in managing working capital.
Overall, the analysis of FormFactor Inc's activity ratios suggests areas where the company may need to focus on improving efficiency in managing its inventory, working capital, and potentially in the collection of receivables and payment of payables.
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 | 81.37 | 87.33 | 99.90 | 98.18 | 100.77 | 95.85 | 100.92 | 95.07 | 101.23 | 109.85 | 120.07 | 104.20 | 91.10 | 93.18 | 92.31 | 90.52 | 89.28 | 88.42 | 85.56 | 78.84 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
FormFactor Inc's Days of Inventory on Hand (DOH) has shown fluctuations over the years, with a general upward trend from 2020 to 2022, peaking at 120.07 days as of June 30, 2022, before gradually declining to 81.37 days by December 31, 2024. This indicates that the company has been carrying more inventory relative to its sales in the earlier years and has since made efforts to reduce its inventory levels.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available in the provided information, which limits a comprehensive analysis of FormFactor Inc's activity ratios. However, these ratios are crucial for evaluating the efficiency of the company's accounts receivable and accounts payable management, respectively.
Overall, based solely on the information provided, FormFactor Inc seems to have managed its inventory levels effectively by reducing the Days of Inventory on Hand over the years. Further insight into DSO and Days of Payables would provide a more holistic view of the company's working capital management and overall operational efficiency.
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 | — | — | — | — | — | — | 3.28 | 3.62 | 3.94 | 4.04 | 4.16 | 5.13 | 4.23 | 4.31 | 4.58 | 6.41 | 6.66 | 6.92 | 7.62 | 9.69 |
| Total asset turnover | 0.67 | 0.64 | 0.61 | 0.59 | 0.60 | 0.64 | 0.65 | 0.70 | 0.74 | 0.77 | 0.76 | 0.74 | 0.75 | 0.76 | 0.76 | 0.73 | 0.72 | 0.74 | 0.72 | 0.73 |
FormFactor Inc's Fixed Asset Turnover ratio has shown a declining trend over the years, indicating that the company's efficiency in generating sales from its fixed assets has deteriorated. The ratio decreased from 9.69 in March 2020 to 3.94 in December 2022. A lower Fixed Asset Turnover ratio suggests that FormFactor Inc may be facing challenges in effectively utilizing its fixed assets to generate revenue.
On the other hand, FormFactor Inc's Total Asset Turnover ratio has fluctuated over the years but generally remained relatively stable. The ratio ranged from 0.59 in June 2024 to 0.77 in September 2022. Total Asset Turnover measures how well the company utilizes its total assets to generate sales. The stability in this ratio indicates that FormFactor Inc has maintained a consistent level of efficiency in generating revenue from its total assets.
In conclusion, while the Fixed Asset Turnover ratio for FormFactor Inc has been on a downward trajectory, the Total Asset Turnover ratio has been more stable. The company may need to focus on improving the efficiency of its fixed assets to enhance its overall operational performance and profitability.