Genpact Limited (G)

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 — — — — — — — — — — — — — — — — — — — —
Receivables turnover 3.97 3.83 3.95 3.93 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
Payables turnover 84.38 162.74 104.34 104.23 104.77 108.21 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
Working capital turnover 4.27 4.22 4.30 7.01 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

Activity ratios provide insights into how efficiently a company is managing its resources. Let's analyze the activity ratios of Genpact Limited based on the provided data:

1. Receivables Turnover:
- The receivables turnover ratio measures how many times a company collects its average accounts receivable during a period.
- Genpact's receivables turnover ratio has fluctuated over the years, ranging from 3.93 to 4.52.
- A higher receivables turnover ratio indicates that Genpact efficiently collects its outstanding receivables, which is generally favorable.

2. Payables Turnover:
- The payables turnover ratio shows how many times a company pays off its average accounts payable during a period.
- Genpact's payables turnover ratio has varied significantly, from 68.38 to 173.84.
- A higher payables turnover ratio suggests that Genpact is effectively managing its trade credit, but extreme fluctuations could indicate changing payment terms with suppliers.

3. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate revenue.
- Genpact's working capital turnover ratio has shown fluctuations, with values ranging from 4.22 to 34.65.
- A higher working capital turnover ratio implies that Genpact is generating more revenue from its working capital, indicating efficient asset utilization.

In conclusion, Genpact Limited's activity ratios exhibit varying trends over the years, reflecting fluctuations in efficiency in managing receivables, payables, and working capital. It is important for the company to continuously monitor and manage these ratios to ensure optimal performance and financial health.

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 — — — — — — — — — — — — — — — — — — — —
Days of sales outstanding (DSO) days 92.02 95.21 92.50 92.97 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
Number of days of payables days 4.33 2.24 3.50 3.50 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

Genpact Limited's activity ratios provide insights into the efficiency of its operations and management of its working capital.

1. Days of Inventory on Hand (DOH): The data provided does not include specific values for this ratio. DOH reflects how many days, on average, inventory is held before being sold. A lower DOH indicates faster inventory turnover, which could suggest efficient inventory management and responsiveness to demand changes.

2. Days of Sales Outstanding (DSO): Genpact's DSO shows the average number of days it takes to collect revenue from its customers. The trend indicates that the company takes around 80-90 days to convert sales into cash. A decreasing DSO over time implies effective credit management and timely collections, contributing to cash flow stability.

3. Number of Days of Payables: This metric highlights how long Genpact takes to pay its suppliers. The data shows fluctuating values ranging from 2 to 5 days, indicating variability in payment terms. A longer payment period may suggest favorable terms with suppliers, while a shorter period could signal efficient cash management.

Overall, analyzing these activity ratios collectively can provide a comprehensive view of Genpact's operational efficiency, effectiveness in managing working capital, and relationships with customers and suppliers.

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 22.93 22.47 23.00 23.32 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
Total asset turnover 0.96 0.88 0.89 0.95 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

Genpact Limited's fixed asset turnover ratio has shown a consistent upward trend over the years, indicating an improvement in the company's efficiency in generating revenue from its fixed assets. The ratio increased from 14.79 in March 2020 to 22.93 in December 2024, peaking at 24.67 in September 2023.

In contrast, the total asset turnover ratio has been more volatile, with fluctuations observed in different periods. The ratio ranged from 0.75 in June 2020 to 0.98 in June 2023. Despite some variations, there is a general increasing trend over the years, with a slight dip in the last quarter of 2024.

Overall, the fixed asset turnover ratio indicates Genpact's ability to efficiently utilize its fixed assets to generate sales revenue over time. Concurrently, the total asset turnover ratio reflects how effectively the company is utilizing all its assets to generate revenue. Both ratios provide valuable insights into Genpact's long-term operational efficiency and asset utilization.