Glaukos Corp (GKOS)

Short-term

Turnover ratios

Activity ratios provide insights into how effectively a company is managing its assets and liabilities. Let's analyze Glaukos Corporation's activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio has been fluctuating over the quarters, indicating changes in how efficiently the company is managing its inventory.
- On average, Glaukos Corporation is turning over its inventory approximately 1.86 times a year, with a slight decrease in Q1 2023 compared to previous quarters. This may imply some inventory management challenges in the most recent quarter.

2. Receivables Turnover:
- Glaukos Corporation's receivables turnover ratio has been relatively stable, oscillating around 7.75 to 8.00 over the quarters.
- The consistent turnover of receivables suggests that Glaukos is efficient in collecting payments from its customers within a reasonable time frame, contributing positively to its cash flow.

3. Payables Turnover:
- Glaukos Corporation's payables turnover has shown significant variability quarter on quarter, ranging from 3.15 to 8.44.
- The diverse range in payables turnover may indicate fluctuations in the company's payment terms with suppliers. A higher turnover may imply that Glaukos is paying its suppliers more frequently, while a lower turnover may suggest delayed payments.

4. Working Capital Turnover:
- The working capital turnover ratio has improved gradually over the quarters, indicating that Glaukos is generating more revenue for every dollar of working capital employed.
- The upward trend in this ratio suggests that Glaukos is efficiently utilizing its working capital to support its operations and generate sales.

Overall, while Glaukos Corporation demonstrates varying levels of effectiveness in managing its inventory, receivables, payables, and working capital, the company's stability in receivables turnover and improving working capital turnover are positive indicators of its financial health and operational efficiency. Monitoring these activity ratios will be essential for assessing the company's ongoing performance and identifying areas for improvement.

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Average number of days

Glaukos Corporation's activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH): Glaukos Corporation's inventory turnover has been relatively stable over the past eight quarters, ranging from 151.38 days to 210.98 days. A higher DOH indicates that the company takes longer to sell its inventory, which may tie up resources and increase holding costs. However, the company's DOH has not shown a significant trend over the period.

2. Days of Sales Outstanding (DSO): Glaukos Corporation's DSO has also remained fairly consistent, ranging between 43.25 days and 48.27 days over the same period. A lower DSO suggests that the company is efficient in collecting receivables, which is favorable for cash flow management. The stable DSO indicates that the company has been effectively managing its accounts receivable turnover.

3. Number of Days of Payables: Glaukos Corporation's days of payables have shown variability, ranging from 43.26 days to 115.78 days. A higher number of days of payables indicates that the company takes longer to pay its suppliers, which may signal potential liquidity advantages or strained supplier relationships. The fluctuating trend in days of payables highlights the company's varying approach to managing its payables.

In summary, Glaukos Corporation's activity ratios suggest a relatively stable inventory turnover, consistent accounts receivable management, and fluctuating payment practices towards suppliers. Monitoring these ratios over time can help assess the company's operational efficiency and effectiveness in managing working capital.

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Long-term

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures the efficiency of a company in generating sales from its fixed assets. Glaukos Corporation's fixed asset turnover has been relatively stable over the quarters, ranging from 2.89 to 3.56. A higher fixed asset turnover indicates that the company is effectively utilizing its fixed assets to generate revenue. The gradual decrease in fixed asset turnover from Q2 2022 to Q1 2023 may suggest a slight decline in asset efficiency during this period.

2. Total Asset Turnover: This ratio reflects the company's ability to generate sales from all its assets, including both fixed and current assets. Glaukos Corporation's total asset turnover has been consistent at around 0.28, indicating that the company is generating approximately $0.28 in revenue for every $1 of assets it owns. A stable total asset turnover suggests that Glaukos is efficiently utilizing its total assets to drive sales.

In summary, while Glaukos Corporation's fixed asset turnover has shown some fluctuations, its total asset turnover has remained stable over the quarters. The company appears to be efficiently utilizing its assets to generate revenue, as indicated by the relatively healthy turnover ratios. However, it is essential for the company to monitor these ratios to ensure continued efficiency in its asset utilization.