FormFactor Inc (FORM)

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 4.57 4.86 4.68 4.95 4.94 4.50 4.06 4.67 5.33 5.25 5.32 5.42 5.53 5.52 5.69 6.27 5.75 5.31 5.41 5.39
Receivables turnover 7.11 7.44 7.12 — 8.46 7.11 7.38 6.86 6.65 7.20 6.92 6.95 6.44 6.95 7.35 6.84 6.00 6.44 7.57 6.53
Payables turnover 7.98 8.82 8.82 9.04 8.78 7.91 9.56 8.97 10.27 9.30 9.54 8.38 8.84 8.30 11.27 12.34 11.71 8.95 17.27 14.22
Working capital turnover 1.65 1.76 1.89 2.03 2.29 2.23 2.11 1.94 2.05 2.20 2.18 2.05 2.09 2.11 1.92 2.00 2.08 2.22 2.22 2.27

FormFactor Inc's activity ratios reveal key insights into the efficiency of the company's operations.

1. Inventory turnover: The company's inventory turnover has been relatively stable over the periods, averaging around 5 times per year. This indicates that FormFactor is efficiently managing its inventory levels and turning over its inventory at a consistent rate.

2. Receivables turnover: FormFactor's receivables turnover has fluctuated over the periods but generally remains above 6 times per year. This suggests that the company is effective in collecting payments from its customers and converting credit sales into cash.

3. Payables turnover: The company's payables turnover has also varied over the periods but has generally been above 8 times per year. A higher payables turnover indicates that FormFactor is efficiently managing its payment obligations and effectively utilizing trade credit from suppliers.

4. Working capital turnover: FormFactor's working capital turnover has shown a consistent trend, averaging around 2 times per year. A higher working capital turnover ratio implies that the company is effectively utilizing its working capital to generate revenue.

Overall, FormFactor Inc's activity ratios indicate solid operational efficiency in managing inventory, receivables, payables, and working capital. These ratios are essential for assessing the company's ability to operate smoothly, generate cash flow, and optimize its resources.

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 79.95 75.04 78.04 73.78 73.84 81.16 89.87 78.20 68.49 69.57 68.56 67.39 66.00 66.15 64.13 58.22 63.44 68.77 67.50 67.67
Days of sales outstanding (DSO) days 51.33 49.04 51.25 — 43.16 51.33 49.47 53.18 54.87 50.71 52.72 52.52 56.65 52.48 49.66 53.35 60.82 56.63 48.24 55.89
Number of days of payables days 45.71 41.40 41.37 40.36 41.55 46.12 38.16 40.71 35.53 39.24 38.26 43.58 41.27 43.98 32.38 29.59 31.18 40.76 21.13 25.66

FormFactor Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH): There has been some fluctuation in FormFactor Inc's inventory management over the periods analyzed. The company had an average of around 71 days of inventory on hand in the most recent period. The trend shows that inventory is being turned over more frequently compared to previous periods, indicating better inventory management efficiency.

2. Days of Sales Outstanding (DSO): The company's average collection period for accounts receivable ranged from 43 to 60 days over the periods analyzed. The lower the DSO, the quicker the company is collecting its receivables. The trend shows that FormFactor Inc has been improving its collection efficiency, with a decreasing trend in DSO over the recent periods.

3. Number of Days of Payables: FormFactor Inc's average payment period ranged from 29 to 46 days over the periods analyzed. A higher number of days of payables indicates that the company is taking longer to pay its suppliers. The trend in the number of days of payables shows some variation, but generally, the company has been managing its payables effectively.

Overall, the trends in FormFactor Inc's activity ratios suggest improvements in inventory management efficiency and accounts receivable collection, with relatively stable performance in managing payables. These trends indicate that the company is managing its working capital effectively and optimizing its cash flow.

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 3.58 3.25 3.27 3.61 3.93 4.81 5.04 5.12 5.24 5.44 5.98 6.40 6.66 6.91 7.61 9.67 10.00 9.77 9.98 9.88
Total asset turnover 0.66 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 0.70 0.69 0.72 0.71

FormFactor Inc's fixed asset turnover has exhibited fluctuation over the past several quarters, ranging from a low of 3.25 to a high of 10.00. The ratio indicates the company's ability to generate sales from its investment in fixed assets. A higher turnover ratio generally suggests more efficient use of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also varied, ranging from 0.64 to 0.77. This ratio reflects FormFactor's overall efficiency in generating sales from all its assets, not just fixed assets. A lower total asset turnover ratio may indicate that the company is not effectively utilizing all its assets to generate revenue.

Overall, while FormFactor Inc has shown strong fixed asset turnover in some periods, its total asset turnover has been relatively lower. This could suggest potential opportunities for the company to improve its overall asset utilization and efficiency in generating sales.