Grid Dynamics Holdings Inc (GDYN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 44.22 | 211.56 | 84.85 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 0.95 | 1.11 | 1.09 | 1.26 | 0.92 |
Grid Dynamics Holdings Inc's Inventory turnover has shown significant fluctuations over the years, ranging from 44.22 to 211.56. This ratio measures how efficiently the company is managing its inventory by indicating how many times during the year the company sells and replenishes its inventory. The increase in 2021 followed by a decrease in 2022 and 2023 may suggest changes in the company's sales volume, inventory management, or market demand.
The Receivables turnover, Payables turnover, and Working capital turnover ratios were not provided in the data, indicating that the company may not have significant accounts receivable and payable balances relative to its sales and working capital during the given periods.
The Working capital turnover, which measures how effectively the company is utilizing its working capital to generate sales, has also fluctuated moderately over the years, ranging from 0.92 to 1.26. A higher ratio indicates that the company is efficiently utilizing its working capital to generate revenue, while a lower ratio could imply inefficiencies in working capital management.
In conclusion, the fluctuations in Inventory turnover and the modest variations in the Working capital turnover of Grid Dynamics Holdings Inc suggest changes in sales volume, inventory management practices, and working capital utilization over the years. Further analysis of these ratios combined with other financial metrics would provide a more comprehensive understanding of the company's operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 8.25 | 1.73 | 4.30 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Grid Dynamics Holdings Inc's Days of Inventory on Hand (DOH) decreased from 4.30 days as of December 31, 2020, to 1.73 days as of December 31, 2021, indicating a significant improvement in managing inventory levels. However, there was a notable increase to 8.25 days as of December 31, 2022, which may suggest potential issues with inventory management or demand forecasting.
The Days of Sales Outstanding (DSO) data is not provided, indicating that information on the collection period for sales invoices is unavailable. Without this information, it is challenging to assess the company's efficiency in collecting accounts receivable.
Similarly, the Number of Days of Payables data is not available, making it difficult to evaluate how long the company takes to pay its suppliers.
In conclusion, while the company has shown improvement in managing inventory in 2021, further analysis of DSO and payables is needed to provide a comprehensive assessment of Grid Dynamics Holdings Inc's activity ratios and overall efficiency in managing working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 21.53 | 34.25 | 27.18 |
| Total asset turnover | 0.59 | 0.72 | 0.76 | 0.82 | 0.67 |
Grid Dynamics Holdings Inc's Fixed asset turnover has shown an increasing trend from 27.18 in 2020 to 34.25 in 2021, indicating that the company is generating more revenue per dollar invested in fixed assets. However, there was a significant decrease in 2022 to 21.53. Unfortunately, data is unavailable for the years 2023 and 2024, limiting the ability to assess the company's performance in utilizing fixed assets.
In terms of Total asset turnover, it has demonstrated variability over the years, with a noticeable increase from 0.67 in 2020 to 0.82 in 2021, suggesting improved efficiency in utilizing total assets to generate revenue. However, the ratio decreased to 0.76 in 2022 and further to 0.72 in 2023 and 0.59 in 2024. This decline may indicate challenges in generating revenue relative to the total assets employed by the company.
Overall, assessing both Fixed asset turnover and Total asset turnover ratios helps in evaluating Grid Dynamics Holdings Inc's long-term activity and operational efficiency in utilizing both fixed and total assets to generate sales.