Glaukos Corp (GKOS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 7.79 | 7.64 | 10.79 | 16.80 | 5.20 |
| Receivables turnover | 7.56 | 7.40 | 8.32 | 5.87 | 6.09 |
| Payables turnover | 24.33 | 20.08 | 33.86 | 60.75 | 38.33 |
| Working capital turnover | 0.94 | 0.72 | 0.66 | 0.50 | 1.14 |
The activity ratios of Glaukos Corporation indicate the efficiency and effectiveness of the company's operations in managing its inventory, receivables, payables, and working capital over the past five years.
1. Inventory turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Glaukos Corporation's inventory turnover has fluctuated over the years, with a significant decrease from 5.80 in 2020 to 1.80 in 2023. This suggests that the company is taking longer to sell its inventory, which could indicate potential issues with demand or inventory management.
2. Receivables turnover: This ratio indicates how efficiently a company collects its accounts receivable. Glaukos Corporation has maintained a relatively stable receivables turnover ratio over the years, ranging from 6.17 in 2019 to 8.79 in 2021. The consistent performance suggests that the company has been effective in collecting payments from its customers.
3. Payables turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Glaukos Corporation has shown fluctuations in its payables turnover, with a significant decrease from 20.98 in 2020 to 5.62 in 2023. A lower payables turnover could indicate that the company is taking longer to pay its suppliers, which may impact relationships and cash flow management.
4. Working capital turnover: This ratio indicates how efficiently a company is using its working capital to generate sales revenue. Glaukos Corporation's working capital turnover has varied over the years, with a decrease from 1.16 in 2019 to 0.98 in 2023. A lower working capital turnover suggests that the company may be less efficient in using its current assets to support its sales activities.
Overall, Glaukos Corporation's activity ratios reveal mixed performance in managing its inventory, receivables, payables, and working capital. The company may need to further analyze these ratios to identify areas for improvement in operational efficiency and financial management.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 46.87 | 47.75 | 33.83 | 21.73 | 70.14 |
| Days of sales outstanding (DSO) | days | 48.30 | 49.33 | 43.85 | 62.18 | 59.98 |
| Number of days of payables | days | 15.00 | 18.18 | 10.78 | 6.01 | 9.52 |
Activity ratios are used to assess how efficiently a company manages its assets and liabilities. Let's analyze the activity ratios of Glaukos Corporation based on the provided data.
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measure how long it takes for the company to sell its inventory.
- The trend shows that Glaukos Corporation had relatively high inventory levels in 2019 and 2023 compared to the other years.
- The significant decrease in DOH from 2019 to 2020 indicates an improvement in inventory management efficiency, but the increase from 2021 to 2023 suggests a reversal in this trend.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding represent the average time it takes for the company to collect payment from customers.
- Glaukos Corporation had relatively stable DSO levels over the years, with 2021 showing the lowest value and 2020 the highest.
- Consistent DSO levels indicate a steady collection process, but it is essential to monitor for any significant deviations that may impact cash flow.
3. Number of Days of Payables:
- The number of days of payables measures how long it takes the company to pay its suppliers.
- Glaukos Corporation experienced fluctuations in payables days, with the highest value in 2019 and the lowest in 2021.
- The shorter payment period in 2021 suggests that the company was paying its suppliers more quickly, potentially impacting cash flow management.
In summary, while Glaukos Corporation has maintained relatively stable days of sales outstanding, there are fluctuations in inventory management and payables days. Continuous monitoring and adjustment of these activity ratios are crucial for efficient working capital management and overall financial health.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.92 | 2.83 | 4.04 | 8.82 | 10.60 |
| Total asset turnover | 0.32 | 0.27 | 0.27 | 0.21 | 0.29 |
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. In the case of Glaukos Corporation, the trend indicates a slight increase in the ratio from 3.00 in 2022 to 3.05 in 2023. This suggests that Glaukos was able to generate $3.05 in revenue for every $1 invested in fixed assets in 2023, which is a positive sign of asset utilization efficiency.
The total asset turnover ratio reflects how effectively a company uses all its assets to generate sales. The trend for Glaukos Corporation shows a fluctuating pattern over the past five years, with a significant improvement in 2020 (0.22) followed by a decline in 2021 and 2022, and a slight increase in 2023 (0.33). This indicates that in 2023, Glaukos generated $0.33 in revenue for every $1 of total assets, which is an improvement compared to the previous year.
Overall, the long-term activity ratios of Glaukos Corporation suggest that the company has been relatively efficient in utilizing its fixed assets to generate revenue, with a fluctuating but improving trend in utilizing its total assets for sales generation over the past five years. It is important for the company to continue monitoring and optimizing its asset utilization to sustain and improve its financial performance over time.