Genpact Limited (G)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Genpact Limited:

1. Inventory Turnover: Genpact's inventory turnover data is not available for the years 2020 to 2024, as indicated by "—". This means that we do not have information on how efficiently Genpact is managing its inventory during these years.

2. Receivables Turnover: The receivables turnover for Genpact shows a slight fluctuation over the years, ranging from 3.97 to 4.52. This indicates that Genpact is collecting its accounts receivable, on average, between 3.97 to 4.52 times a year. A higher turnover ratio suggests better efficiency in collecting outstanding payments from customers.

3. Payables Turnover: Genpact's payables turnover has varied over the years, with values ranging from 79.16 to 173.84. A lower payables turnover ratio suggests that Genpact is taking longer to pay its suppliers, which could indicate either tighter credit terms or potential liquidity challenges.

4. Working Capital Turnover: The working capital turnover for Genpact has also shown some variability, moving from 4.27 to 7.81. A higher turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales revenue, while a lower ratio may suggest inefficiencies in managing working capital.

In conclusion, while Genpact's receivables turnover reflects relatively stable collection efficiency, the payables turnover and working capital turnover ratios show some fluctuations, warranting further investigation into the company's liquidity management and operational effectiveness.

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Average number of days

The activity ratios of Genpact Limited based on the provided data indicate the following trends:

1. Days of Inventory on Hand (DOH): The data does not provide specific figures for the days of inventory on hand for the years 2020 to 2024. The absence of this information makes it challenging to assess the efficiency of Genpact in managing its inventory levels and turnover.

2. Days of Sales Outstanding (DSO): The days of sales outstanding have shown a mixed trend over the five-year period. The DSO decreased from 86.95 days in 2020 to 80.81 days in 2021, indicating an improvement in collecting receivables. However, there was a slight increase in DSO to 83.34 days in 2022, followed by further increases in 2023 (91.42 days) and 2024 (92.02 days). This upward trend suggests a potential delay in collecting payments from customers, which may impact the company's cash flow and liquidity.

3. Number of Days of Payables: The number of days of payables also varied during the period under review. In 2020, Genpact had a short payment period of 2.10 days, which increased to 3.52 days in 2021 and further to 4.61 days in 2022. The payables period decreased slightly to 3.48 days in 2023 but then rose again to 4.33 days in 2024. A longer payables period indicates that the company is taking more time to settle its outstanding obligations, which can be beneficial for cash flow management but may strain supplier relationships if not managed effectively.

In summary, while the DSO ratio indicates a need for improved receivables management, the variability in the days of payables suggests a balance between cash flow optimization and maintaining healthy vendor relationships. The absence of DOH data limits a comprehensive analysis of Genpact's inventory management efficiency.

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Long-term

Genpact Limited's long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate revenue. Based on the provided data, the Fixed Asset Turnover ratio has shown an increasing trend over the past five years, from 16.05 in 2020 to 22.93 in 2024. This suggests that Genpact has been able to generate more revenue per dollar invested in fixed assets over the period, indicating improved efficiency in utilizing its long-term assets.

Furthermore, the Total Asset Turnover ratio has also displayed a positive trajectory, rising from 0.76 in 2020 to 0.96 in 2024. This implies that Genpact has been able to generate more revenue relative to its total assets, reflecting efficiency in overall asset utilization.

Overall, the increasing Fixed Asset Turnover and Total Asset Turnover ratios signify Genpact's ability to efficiently leverage its long-term assets to drive revenue growth and maximize operational efficiency. This trend indicates that the company has been effectively managing and utilizing its assets to support its business operations and generate value for shareholders.