Glaukos Corp (GKOS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.63 | 7.79 | 7.64 | 10.79 | 16.80 |
| Receivables turnover | 6.23 | 7.56 | 7.40 | 8.32 | 5.87 |
| Payables turnover | 29.35 | 24.33 | 20.08 | 33.86 | 60.75 |
| Working capital turnover | 1.01 | 0.94 | 0.72 | 0.66 | 0.50 |
Glaukos Corp's Inventory turnover has been decreasing steadily over the years, indicating that the company is taking longer to sell its inventory. This could suggest potential issues with managing inventory levels efficiently.
On the other hand, the Receivables turnover has been relatively stable, showing a slight decrease in 2024 compared to previous years. This ratio indicates how quickly the company collects payments from its customers. A stable ratio is generally positive, but a decline could indicate potential concerns with collecting receivables promptly.
In terms of Payables turnover, Glaukos Corp has shown a significant decrease in this ratio from 2020 to 2022, suggesting that the company is taking longer to pay its suppliers. However, there has been a slight improvement in 2024. Delayed payments could impact relationships with suppliers or indicate cash flow issues.
The Working Capital turnover has been increasing steadily over the years, indicating that Glaukos Corp is generating more revenue per unit of working capital. This could imply improved efficiency in utilizing its resources to generate sales.
Overall, a declining Inventory turnover and Payables turnover, along with a stable Receivables turnover, may require attention as they could indicate potential inefficiencies in inventory management and payables processing. A steadily increasing Working Capital turnover is a positive sign of improved operational efficiency and revenue generation relative to working capital investment.
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 | 55.07 | 46.87 | 47.75 | 33.83 | 21.73 |
| Days of sales outstanding (DSO) | days | 58.61 | 48.30 | 49.33 | 43.85 | 62.18 |
| Number of days of payables | days | 12.44 | 15.00 | 18.18 | 10.78 | 6.01 |
Glaukos Corp's activity ratios reflect the efficiency of its operations and management of working capital.
1. Days of Inventory on Hand (DOH):
- Glaukos Corp's DOH has been increasing over the years, from 21.73 days in 2020 to 55.07 days in 2024. This indicates that the company is holding inventory for a longer period before selling it.
- A rising DOH may suggest inefficiencies in inventory management, such as overstocking or slow-moving inventory. It ties up capital that could be used elsewhere in the business.
2. Days of Sales Outstanding (DSO):
- The DSO for Glaukos Corp fluctuated between 43.85 days in 2021 and 58.61 days in 2024. This ratio measures how quickly the company collects payments from customers.
- A higher DSO could indicate that Glaukos is taking longer to receive cash from sales, potentially impacting cash flow and liquidity.
3. Number of Days of Payables:
- Glaukos Corp's days of payables ranged from 6.01 days in 2020 to 18.18 days in 2022, then decreased to 12.44 days in 2024. This ratio represents how long the company takes to pay its suppliers.
- An increasing trend in days of payables could signal that the company is taking longer to settle its payables, which could strain supplier relationships if not managed effectively.
In summary, Glaukos Corp should focus on optimizing its inventory management to reduce DOH, improving collections to lower DSO, and balancing payments to suppliers to maintain healthy relationships and working capital efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 3.87 | 2.92 | 2.83 | 4.04 | 8.82 |
| Total asset turnover | 0.39 | 0.32 | 0.27 | 0.27 | 0.21 |
Glaukos Corp's fixed asset turnover has shown a decreasing trend over the five-year period, declining from 8.82 in 2020 to 3.87 in 2024. This indicates that the company's ability to generate revenue from its fixed assets has diminished over time.
On the other hand, the total asset turnover ratio has displayed a consistent increase from 0.21 in 2020 to 0.39 in 2024. This suggests that Glaukos Corp's efficiency in utilizing its total assets to generate sales has improved steadily.
The contrasting trends in fixed asset turnover and total asset turnover ratios may reflect changes in the company's asset base and operational efficiency. It is noteworthy that while the fixed asset turnover ratio has decreased, the total asset turnover ratio has increased, which could imply a shift towards utilizing a higher proportion of total assets in revenue generation, rather than primarily relying on fixed assets. This shift may indicate strategic changes in the company's operations or investment in more productive assets.
Overall, the analysis of Glaukos Corp's long-term activity ratios highlights the importance of evaluating both fixed asset turnover and total asset turnover ratios in conjunction to gain a comprehensive understanding of the company's asset utilization and efficiency over time.