Haemonetics Corporation (HAE)

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	Jun 30, 2019
Inventory turnover	3.60	3.59	3.68	3.54	3.84	3.81	3.69	3.25	3.12	2.97	2.75	2.63	2.51	2.71	2.78	3.03	3.56	3.80	3.88	4.24
Receivables turnover	12.57	11.46	13.74	13.40	12.97	6.15	—	—	6.20	—	—	—	6.76	6.01	6.37	6.69	5.99	5.86	5.60	5.99
Payables turnover	15.55	19.18	13.13	13.09	15.57	15.28	15.27	15.57	15.65	17.74	19.73	17.45	16.13	18.87	17.30	18.39	18.99	18.46	16.51	15.49
Working capital turnover	5.54	4.82	3.98	4.20	4.49	2.32	2.36	1.99	3.15	2.55	2.28	1.98	1.96	1.86	2.14	2.69	3.01	3.07	3.02	3.04

Haemonetics Corporation's activity ratios provide insight into how efficiently the company manages its assets and operations.

1. Inventory turnover:
- The inventory turnover has been relatively stable over the periods, averaging around 3.5 to 4 times per year.
- This indicates that Haemonetics is managing its inventory well, efficiently selling and replacing its stock.

2. Receivables turnover:
- There is variability in the receivables turnover ratio, ranging from 5.86 to 13.74 times per year.
- The higher turnover in recent periods suggests the company is collecting its accounts receivable more quickly, which is positive for cash flow.

3. Payables turnover:
- The payables turnover ratio has fluctuated but generally remains above 15 times per year.
- This indicates that Haemonetics is effectively managing its accounts payable, potentially taking advantage of credit terms without straining its liquidity.

4. Working capital turnover:
- The working capital turnover ratio has varied, but with an upward trend in recent periods.
- This suggests that Haemonetics is generating revenue efficiently relative to its working capital, indicating effective utilization of resources.

Overall, Haemonetics appears to be effectively managing its inventory, receivables, payables, and working capital to support its operational efficiency and cash flow.

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	Jun 30, 2019
Days of inventory on hand (DOH)	days	101.49	101.76	99.13	103.25	95.08	95.81	99.00	112.47	117.12	122.95	132.75	139.01	145.18	134.86	131.26	120.60	102.39	96.10	94.09	86.01
Days of sales outstanding (DSO)	days	29.04	31.85	26.57	27.24	28.14	59.33	—	—	58.91	—	—	—	54.00	60.76	57.31	54.53	60.92	62.28	65.15	60.96
Number of days of payables	days	23.47	19.03	27.80	27.89	23.44	23.89	23.90	23.44	23.33	20.58	18.50	20.92	22.63	19.34	21.10	19.84	19.22	19.77	22.11	23.56

Haemonetics Corporation's activity ratios provide insights into its efficiency in managing its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH): The DOH indicates the average number of days it takes for the company to sell its inventory. Over the periods presented, Haemonetics has shown fluctuating trends in its inventory management. The DOH ranged from 86.01 days to 145.18 days, with the latest figure for March 31, 2024, at 101.49 days. A higher DOH suggests slower inventory turnover, potentially tying up capital in inventory.

2. Days of Sales Outstanding (DSO): The DSO metric reflects the average number of days it takes for the company to collect payment after making a sale. Haemonetics has demonstrated mixed performance in accounts receivable management, with DSO ranging from 26.57 days to 60.92 days. As of March 31, 2024, the DSO stands at 29.04 days, indicating a relatively efficient collection of receivables in comparison to previous periods.

3. Number of Days of Payables: This metric measures how long it takes a company to pay its suppliers. Haemonetics has maintained a consistent range of days of payables, with figures fluctuating between 18.50 days and 27.89 days. As of March 31, 2024, the number of days of payables is 23.47 days. A higher number of days of payables may indicate that the company is taking longer to settle its outstanding payables, potentially benefiting from extended payment terms.

In analyzing these activity ratios, investors and stakeholders can assess Haemonetics Corporation's efficiency in managing its working capital components. A balance between inventory turnover, receivables collection, and payables management is crucial for optimizing cash flows and overall operational efficiency.

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	Jun 30, 2019
Fixed asset turnover	8.34	7.61	7.78	7.79	7.47	3.56	3.47	3.51	3.82	4.00	4.18	4.21	3.96	3.68	3.75	3.89	3.91	3.73	3.74	3.53
Total asset turnover	1.18	1.10	1.19	1.21	1.20	0.59	0.57	0.56	0.53	0.52	0.52	0.50	0.47	0.67	0.64	0.66	0.78	0.81	0.83	0.78

Haemonetics Corporation's long-term activity ratios indicate its efficiency in utilizing fixed assets and total assets to generate revenue over time. The fixed asset turnover ratio has shown a positive trend, increasing from 3.53 in Dec 2019 to 8.34 in Mar 2024, indicating that the company has become more efficient in generating revenue from its fixed assets. This improvement suggests better utilization of fixed assets to drive sales and profitability.

Similarly, the total asset turnover ratio has also experienced an upward trend, increasing from 0.47 in Mar 2021 to 1.18 in Mar 2024. This signifies that Haemonetics Corporation has been more effective in generating revenue from its total assets, which includes both fixed and current assets. It indicates an improvement in the overall efficiency of the company in generating sales from its total asset base.

Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios suggest that Haemonetics Corporation has been making better use of its assets to drive revenue generation, reflecting improved operational efficiency and potentially stronger financial performance in the long term.