Gen Digital Inc. (GEN)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jul 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 5.01 | 33.05 | 30.27 | 19.00 | 16.67 | 14.23 | 7.29 | 7.29 | 7.00 | 6.69 | 1.59 | 1.55 | 1.33 | 1.39 | 0.88 | 1.46 | 1.90 | 0.06 | — |
| Receivables turnover | 11.31 | 3.73 | 15.54 | 15.48 | 9.13 | 6.49 | 6.90 | — | 18.04 | 14.72 | — | — | 11.98 | — | — | — | — | — | — | — |
| Payables turnover | 11.08 | 11.79 | 11.02 | 10.25 | 7.65 | 6.67 | 6.47 | 5.75 | 6.48 | 4.89 | 4.79 | 4.97 | 6.96 | 5.37 | 5.70 | 6.38 | 4.52 | 2.68 | 3.56 | 3.30 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | 92.33 | 56.18 | — | 5.45 | 0.28 | 0.53 | — |
Gen Digital Inc.'s activity ratios provide insights into the efficiency of its operations and management of working capital.
The inventory turnover indicates how many times inventory is sold and replaced over a period. Gen Digital's inventory turnover has been fluctuating, reaching peaks in the last two quarters of 2023 and then declining but still remaining relatively stable above 5. This suggests the company is managing its inventory well, with a potential improvement opportunity if the trend sustains.
The receivables turnover ratio reflects how quickly the company collects payments from customers. Gen Digital's receivables turnover has been inconsistent, with peaks in turnover observed in the first and fourth quarters of 2023. However, in the third quarter of 2023, the data is missing, indicating potential issues in data reporting or gaps in analysis for that period.
The payables turnover ratio measures how quickly the company is paying its suppliers. Gen Digital's payables turnover has been relatively stable, hovering around 6, indicating that the company is maintaining a balanced approach towards managing its payables.
The working capital turnover ratio, which assesses how efficiently the company utilizes its working capital to generate sales, has limited data available, but it demonstrates very high turnover rates for the last two quarters of 2020 and the first two quarters of 2021. This suggests that Gen Digital was effectively utilizing its working capital during that period.
In summary, Gen Digital Inc. shows varying efficiency levels in managing its inventory, receivables, payables, and working capital turnover. Continued monitoring and potential improvements in these areas can contribute to better overall financial performance and operational effectiveness.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jul 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 72.90 | 11.05 | 12.06 | 19.21 | 21.90 | 25.64 | 50.10 | 50.10 | 52.14 | 54.56 | 229.81 | 234.93 | 273.75 | 262.10 | 413.60 | 250.76 | 192.06 | 6,023.78 | — |
| Days of sales outstanding (DSO) | days | 32.27 | 97.89 | 23.48 | 23.57 | 39.96 | 56.25 | 52.93 | — | 20.23 | 24.80 | — | — | 30.48 | — | — | — | — | — | — | — |
| Number of days of payables | days | 32.95 | 30.96 | 33.14 | 35.62 | 47.72 | 54.75 | 56.42 | 63.52 | 56.36 | 74.62 | 76.20 | 73.39 | 52.43 | 67.93 | 64.07 | 57.18 | 80.80 | 136.44 | 102.58 | 110.48 |
The activity ratios of Gen Digital Inc. provide insights into the efficiency of the company's operations over time.
1. Days of Inventory on Hand (DOH): The DOH ratio reflects how many days, on average, it takes for Gen Digital Inc. to sell its inventory. A lower DOH indicates efficient inventory management. The trend of DOH shows fluctuations, with significant improvements from the last quarter of 2023 to the first quarter of 2024. However, there was a spike in DOH in the third and fourth quarters of 2021 and the first quarter of 2023, which may indicate inventory management issues during those periods.
2. Days of Sales Outstanding (DSO): DSO measures how long it takes for Gen Digital Inc. to collect on its sales. A lower DSO is preferable as it indicates a quicker collection of receivables. Gen Digital Inc. experienced fluctuations in DSO over the observed periods, with the highest DSO in the second quarter of 2023 and the lowest in the first quarter of 2021. The increasing trend in DSO from the first to the second quarter of 2024 may be indicative of slower collections.
3. Number of Days of Payables: This ratio reflects the average number of days Gen Digital Inc. takes to pay its suppliers and vendors. A higher number of days of payables suggests that the company is taking longer to settle its payables, which can have both positive and negative implications. The number of days of payables has fluctuated over time, with the highest observed in the fourth quarter of 2019 and the lowest in the second quarter of 2020. The downward trend from the fourth quarter of 2021 to the first quarter of 2024 indicates a potential improvement in the company's payment practices.
Overall, analyzing these activity ratios can help assess how effectively Gen Digital Inc. manages its inventory, collects receivables, and pays its creditors, providing valuable insights into the company's operational efficiency and financial health.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jul 5, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 52.94 | 49.89 | 50.36 | 49.00 | 34.97 | 23.34 | 20.31 | 38.16 | 46.60 | 43.68 | 40.13 | 36.94 | 32.71 | 35.61 | 32.96 | 27.89 | 10.46 | 6.83 | 3.68 | 3.18 |
| Total asset turnover | 0.24 | 0.23 | 0.23 | 0.23 | 0.17 | 0.16 | 0.14 | 0.34 | 0.40 | 0.40 | 0.40 | 0.40 | 0.40 | 0.39 | 0.39 | 0.38 | 0.32 | 0.13 | 0.15 | 0.16 |
Gen Digital Inc.'s fixed asset turnover has shown an increasing trend over the past six quarters, with the ratio ranging from 3.18 to 52.94. This indicates that the company is generating sales efficiently from its fixed assets, such as property, plant, and equipment. The significant improvement in fixed asset turnover suggests that Gen Digital Inc. has been able to utilize its fixed assets more effectively to generate revenue.
In terms of total asset turnover, the ratio has also demonstrated an upward trend, ranging from 0.13 to 0.40 over the same period. This indicates that the company is generating sales relative to its total assets efficiently. The consistent increase in total asset turnover suggests that Gen Digital Inc. is utilizing its total assets more efficiently to generate revenue and that the company's overall asset management and operational efficiency have been improving.
Overall, the improving trends in both fixed asset turnover and total asset turnover ratios indicate that Gen Digital Inc. has been able to enhance its asset utilization and efficiency in generating sales, which bodes well for the company's long-term financial performance and operational effectiveness.