GE HealthCare Technologies Inc. (GEHC)

Short-term

Turnover ratios

Based on the activity ratios of GE HealthCare Technologies Inc. over the given periods, we can observe the following trends:

1. Inventory Turnover:
- The company's inventory turnover has been relatively stable, ranging between 2.06 and 2.87. This indicates that the company is able to efficiently manage its inventory levels and convert them into sales within a reasonable time frame.

2. Receivables Turnover:
- The receivables turnover rate was significantly high at 3,214.00 for September 30, 2023, but data was not available for the subsequent periods until December 31, 2024, when it dropped to 187.32. This substantial decrease could be a cause for concern, as it suggests a potential issue with collecting receivables efficiently.

3. Payables Turnover:
- The payables turnover ratio has been fluctuating between 1.41 and 2.21, indicating varying payment practices with suppliers over the periods analyzed. A lower turnover ratio may suggest that the company is taking longer to pay its suppliers, which could impact relationships and possibly cash flow.

4. Working Capital Turnover:
- The working capital turnover has shown significant fluctuations over the periods, ranging from 9.63 to 54.91. A higher turnover ratio typically indicates that the company is effectively utilizing its working capital to generate sales. However, the fluctuations in this ratio could reflect changes in the company's operational efficiency or capital management strategies.

In summary, while the inventory turnover shows consistency in managing inventory efficiently, the decreasing trend in receivables turnover and fluctuations in payables turnover raise some concerns regarding the company's working capital management and cash flow. Further analysis and monitoring of these ratios will be important to understand the overall efficiency and effectiveness of GE HealthCare Technologies Inc.'s operational activities.

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Average number of days

Based on the activity ratios of GE HealthCare Technologies Inc., the following observations can be made:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have been increasing steadily over the periods provided. The company had 126.98 days of inventory on hand as of September 30, 2023, which increased to 177.45 days by September 30, 2024. This indicates that the company is taking longer to sell its inventory, possibly due to overstocking or slower sales.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding show a fluctuating trend from extremely low values to values in the positive range over the periods. There was a very low DSO of 0.11 days on September 30, 2023, and it increased to 1.95 days by December 31, 2024. A DSO in the positive range may suggest that the company is taking longer to collect payments from its customers, possibly facing issues with credit terms or collections.

3. Number of Days of Payables:
- The number of days of payables has also shown fluctuations over the periods analyzed. The company took 165.52 days to pay its suppliers on September 30, 2023, and this increased to 258.26 days by December 31, 2024. A higher number of days of payables may indicate that the company is taking longer to settle its payables, possibly to manage cash flow or negotiate better payment terms with suppliers.

In summary, the trend in these activity ratios for GE HealthCare Technologies Inc. suggests a need for closer monitoring and potential improvement in inventory management, accounts receivable collection, and payable settlement practices to optimize working capital efficiency and overall operational performance.

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Long-term

The fixed asset turnover ratio for GE HealthCare Technologies Inc. has been relatively stable over the analyzed periods, ranging from 8.70 to 9.57. This indicates that the company efficiently generates revenue from its fixed assets, with a higher ratio suggesting better utilization of fixed assets to generate sales.

Meanwhile, the total asset turnover ratio for the company fluctuated slightly between 0.56 and 0.60. This ratio reflects how efficiently the company is using its total assets to generate revenue. A higher total asset turnover ratio indicates more efficient utilization of assets to generate sales.

Overall, GE HealthCare Technologies Inc. demonstrates solid performance in terms of both fixed asset turnover and total asset turnover, indicating effective management of assets to drive revenue generation.