Gen Digital Inc. (GEN)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 731.00 | 19.00 | 7.29 | 1.55 |
| Receivables turnover | — | 23.39 | 19.87 | 19.02 | 17.24 |
| Payables turnover | — | 11.08 | 7.65 | 6.48 | 6.96 |
| Working capital turnover | — | — | — | — | — |
Gen Digital Inc.'s Inventory turnover ratio increased significantly over the years, indicating a more efficient management of inventory levels. The company's ability to turn over its inventory improved from 1.55 times in 2021 to 731.00 times in 2024, reflecting a substantial enhancement in inventory management efficiency.
In terms of receivables turnover, Gen Digital Inc. maintained a consistent trend of improvement from 17.24 in 2021 to 23.39 in 2024. This suggests that the company is collecting its receivables more quickly, which is a positive sign of effective credit control and efficient accounts receivable management.
The payables turnover ratio also showed an increasing trend over the years, rising from 6.96 in 2021 to 11.08 in 2024. This indicates that the company is taking longer to pay its suppliers, possibly benefiting from more favorable credit terms or improved working capital management.
Unfortunately, data for the Working Capital turnover ratio is not provided, making it difficult to assess the company's efficiency in generating sales relative to its working capital. Overall, the activity ratios of Gen Digital Inc. reflect improvements in inventory management, receivables collection, and payables payment efficiency over the years.
Average number of days
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 0.50 | 19.21 | 50.10 | 234.93 |
| Days of sales outstanding (DSO) | days | — | 15.61 | 18.37 | 19.19 | 21.18 |
| Number of days of payables | days | — | 32.95 | 47.72 | 56.36 | 52.43 |
Gen Digital Inc.'s Days of Inventory on Hand (DOH) has shown a significant improvement over the years, decreasing from 234.93 days as of March 31, 2021, to just 0.50 days by March 31, 2024. This indicates that the company has efficiently managed its inventory levels, leading to a faster turnover of inventory.
In terms of Days of Sales Outstanding (DSO), Gen Digital Inc. has also demonstrated efficiency in collecting payments from its customers. The DSO has seen a consistent downward trend from 21.18 days as of March 31, 2021, to 15.61 days by March 31, 2024. This implies that the company is able to convert its accounts receivable into cash relatively quickly.
Regarding the Number of Days of Payables, Gen Digital Inc. has been extending its payment period to suppliers, with the number of days of payables increasing from 52.43 days as of March 31, 2021, to 32.95 days by March 31, 2024. This suggests that the company is effectively managing its cash flow by delaying payments to suppliers.
Overall, Gen Digital Inc. has shown efficiency in managing its working capital through improvements in its activity ratios. The company's ability to minimize inventory, collect payments promptly, and optimize payables illustrates effective management of its operating cycle and working capital needs.
Long-term
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 43.92 | 20.87 | 16.56 |
| Total asset turnover | — | 0.24 | 0.21 | 0.40 | 0.40 |
Based on the provided data, let's analyze the long-term activity ratios of Gen Digital Inc. for the years 2021 to 2024.
1. Fixed Asset Turnover:
- In 2021, the Fixed Asset Turnover ratio was 16.56, indicating that for every dollar invested in fixed assets, the company generated $16.56 in sales.
- This ratio improved to 20.87 in 2022, suggesting that the company became more efficient in utilizing its fixed assets to generate revenue.
- A significant jump in the ratio was observed in 2023, reaching 43.92. This substantial increase indicates a remarkable improvement in the efficiency of the company's fixed asset utilization.
- However, the data for 2024 is missing, so it is difficult to assess the trend in fixed asset utilization for that year.
- The increasing trend from 2021 to 2023 demonstrates that Gen Digital Inc. was able to generate more sales per dollar invested in fixed assets over the given period.
2. Total Asset Turnover:
- The Total Asset Turnover ratio was constant at 0.40 for both 2021 and 2022, suggesting that for every dollar of total assets, the company generated $0.40 in sales.
- In 2023, there was a decline in the Total Asset Turnover ratio to 0.21, indicating a decrease in the efficiency of the company in utilizing its total assets to generate revenue.
- However, the ratio improved slightly in 2024 to 0.24, which could signify a modest increase in asset turnover efficiency compared to the previous year.
- The data for 2025 is not provided, so the analysis is limited to the information available.
- The fluctuating trend in Total Asset Turnover indicates variability in the company's ability to generate sales relative to its total asset base over the analyzed period.
In summary, Gen Digital Inc. experienced fluctuations in its long-term activity ratios over the years, with the Fixed Asset Turnover ratio showing a significant increase in efficiency from 2021 to 2023. However, the Total Asset Turnover ratio displayed variability in asset turnover efficiency during the same period. This analysis highlights the importance for Gen Digital Inc. to focus on effectively utilizing its assets to generate revenue and maintain a consistent trend in activity ratios for sustainable growth.