Genpact Limited (G)

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 — — 13.33 — — 13.43 12.13 21.27 — 14.69 13.22 16.69 16.11 13.07 16.47 21.80 18.94 11.90 11.83 12.17
Receivables turnover 3.99 4.18 4.36 4.35 4.38 4.35 4.17 4.25 4.52 4.08 4.15 4.20 4.20 4.29 4.19 3.97 3.83 3.94 3.81 3.70
Payables turnover 104.77 108.21 68.38 126.27 79.16 100.99 102.23 126.80 103.68 100.72 97.38 111.94 173.84 79.18 125.27 91.31 104.39 104.86 86.27 67.69
Working capital turnover 7.81 4.98 5.40 5.57 6.46 34.65 6.76 6.89 6.56 5.11 5.96 4.30 6.79 5.05 5.77 6.79 5.49 6.93 7.17 8.15

Inventory Turnover: The data for inventory turnover is missing across all quarters, therefore, it is not possible to analyze the efficiency of Genpact's inventory management based on this ratio.

Receivables Turnover: Genpact's receivables turnover ratio has been relatively stable over the past eight quarters, ranging from 4.01 to 4.39. This indicates that the company is able to collect its accounts receivable approximately 4 times a year on average. A higher turnover ratio is generally seen as a positive sign, as it implies that the company is efficient in collecting payments from its customers.

Payables Turnover: Genpact's payables turnover ratio has shown significant fluctuations over the quarters, with values ranging from 68.38 to 126.80. A high payables turnover ratio suggests that the company is paying its suppliers quickly, which could be beneficial in maintaining good relationships with them. However, it is essential to assess the reasons behind these fluctuations to ensure sustainable payables management.

Working Capital Turnover: The working capital turnover ratio for Genpact has varied considerably over the quarters, with a sharp decline from 34.65 in Q3 2022 to 4.98 in Q3 2023. This ratio measures how effectively the company is utilizing its working capital to generate revenue. A higher turnover ratio indicates efficient utilization of working capital. The significant drop in Q3 2022 raises concerns and may warrant further investigation into the company's working capital management practices.

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 — — 27.38 — — 27.17 30.09 17.16 — 24.85 27.60 21.87 22.65 27.92 22.17 16.74 19.27 30.69 30.85 30.00
Days of sales outstanding (DSO) days 91.42 87.24 83.77 83.84 83.34 83.87 87.47 85.81 80.81 89.41 87.96 86.97 86.95 85.07 87.20 91.94 95.22 92.71 95.91 98.54
Number of days of payables days 3.48 3.37 5.34 2.89 4.61 3.61 3.57 2.88 3.52 3.62 3.75 3.26 2.10 4.61 2.91 4.00 3.50 3.48 4.23 5.39

To analyze Genpact Ltd's activity ratios, we will focus on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH): Unfortunately, data for this ratio is not available in the table. DOH measures how many days it takes for a company to sell its inventory. A lower DOH indicates efficient inventory management and quicker turnover of inventory.

2. Days of Sales Outstanding (DSO): DSO measures how long it takes for a company to collect on its sales. Genpact Ltd's DSO has shown some fluctuations over the quarters, ranging from a high of 91.01 days in Q4 2023 to a low of 83.06 days in Q4 2022. A decrease in DSO is generally favorable as it signifies quicker cash collection from customers.

3. Number of Days of Payables: This ratio represents how long a company takes to pay its suppliers. Genpact Ltd's payables days have varied, with the lowest figure of 2.88 days in Q1 2022 and the highest of 5.34 days in Q2 2023. A longer payables period allows the company to hold onto cash longer but may strain supplier relationships if extended too much.

Overall, Genpact Ltd's activity ratios show some variability across the quarters. Improving DSO and maintaining a balance between inventory and payables management can lead to enhanced liquidity and operational efficiency for the company.

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 23.59 24.67 24.52 24.50 24.18 24.07 22.46 20.45 18.70 18.76 18.60 17.11 16.05 15.58 15.63 14.79 13.86 15.78 15.50 15.09
Total asset turnover 0.93 0.96 0.98 0.97 0.95 0.96 0.94 0.83 0.81 0.77 0.78 0.78 0.76 0.77 0.75 0.83 0.79 0.83 0.82 0.80

The fixed asset turnover ratio for Genpact Ltd has been consistently high over the past eight quarters, ranging from 20.45 to 24.67. This indicates that the company is efficient in generating revenue from its fixed assets. The increasing trend in fixed asset turnover suggests that Genpact is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio shows a fluctuating pattern, oscillating between 0.83 and 0.98. While the company's ability to generate revenue from its total assets has improved over time, there are periods of slight decline in efficiency. Overall, the total asset turnover ratio reflects Genpact's effectiveness in generating sales relative to its total assets.

In conclusion, Genpact Ltd has exhibited strong efficiency in generating revenue from its fixed assets, as indicated by the high and stable fixed asset turnover ratio. The total asset turnover ratio also demonstrates the company's overall effectiveness in utilizing its total assets to generate sales, albeit with some fluctuations.