Haemonetics Corporation (HAE)

Activity ratios

Short-term

Turnover ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Inventory turnover 1.68 1.80 1.70 1.71 1.96 1.97 2.05 2.00 2.13 2.09 2.00 1.75 1.66 1.64 1.55 1.49 1.46 1.52 1.52 1.65
Receivables turnover 6.71 6.48 6.37 6.62 6.34 6.00 7.11 6.88 6.52 6.24 6.32 7.01 6.23 6.15 6.61 6.80 6.82 6.02 6.38 6.70
Payables turnover — 10.26 9.38 8.31 8.48 10.52 7.32 7.40 8.66 8.38 8.27 8.40 8.36 9.81 11.14 9.92 9.40 10.57 9.48 10.05
Working capital turnover 3.81 1.82 2.00 1.86 2.79 2.52 2.06 2.16 2.26 2.36 2.39 2.02 3.17 2.55 2.27 1.98 1.98 1.86 2.14 2.69

Haemonetics Corporation's activity ratios show varying trends over the periods analyzed.

1. Inventory Turnover: The inventory turnover of Haemonetics Corporation has generally been increasing over time, indicating that the company is selling its inventory more efficiently. The ratio has shown a significant improvement from 1.65 on June 30, 2020, to 1.68 on March 31, 2024, before slightly declining to 1.68 by March 31, 2025.

2. Receivables Turnover: The receivables turnover for Haemonetics Corporation has fluctuated throughout the periods examined. The ratio has ranged from a low of 6.00 on December 31, 2023, to a high of 7.11 on September 30, 2023. Generally, the company collects its receivables between 6 to 7 times a year, with some variability in collection efficiency.

3. Payables Turnover: Haemonetics Corporation's payables turnover ratio has shown fluctuations as well, with no data provided for March 31, 2025. The company's ability to manage its payables has varied, with the ratio ranging from 7.32 on September 30, 2023, to a high of 11.14 on September 30, 2021. A lower turnover ratio may indicate that the company is taking longer to pay its suppliers.

4. Working Capital Turnover: The working capital turnover for Haemonetics Corporation has also shown mixed trends over the periods reviewed. The ratio has fluctuated between 1.86 on June 30, 2020, and a peak of 3.81 on March 31, 2025. A higher working capital turnover indicates that the company is effectively utilizing its working capital to generate revenue.

In conclusion, while the inventory turnover and working capital turnover have generally shown positive trends, the receivables turnover and payables turnover have displayed more variability. Haemonetics Corporation should continue monitoring and managing its activity ratios effectively to ensure optimal efficiency in its operations.

Average number of days

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Days of inventory on hand (DOH) days 217.82 203.18 214.77 213.51 186.20 185.48 177.88 182.49 171.03 174.79 182.74 208.51 219.31 222.20 235.01 244.45 249.15 240.78 239.51 220.75
Days of sales outstanding (DSO) days 54.36 56.32 57.26 55.13 57.60 60.81 51.32 53.05 55.95 58.54 57.77 52.10 58.57 59.34 55.23 53.70 53.49 60.68 57.24 54.46
Number of days of payables days — 35.59 38.92 43.94 43.06 34.68 49.89 49.30 42.15 43.58 44.12 43.45 43.69 37.19 32.75 36.78 38.84 34.53 38.51 36.32

Haemonetics Corporation's activity ratios reflect its efficiency in managing inventory, sales, and payables.

1. Days of Inventory on Hand (DOH): The trend in DOH shows fluctuations over time. From June 2020 to September 2022, DOH decreased steadily, indicating better inventory management efficiency. However, from September 2022 to June 2024, there was an increase in DOH, suggesting a potential buildup of inventory. This trend reversed in the later periods, with DOH decreasing again, indicating more efficient inventory turnover.

2. Days of Sales Outstanding (DSO): The DSO trend is relatively stable, with slight fluctuations over time. A lower DSO indicates that the company is collecting sales revenue more quickly. Haemonetics managed to keep DSO relatively low, below 60 days most of the time, indicating efficient accounts receivable management.

3. Number of Days of Payables: The number of days of payables represents the time it takes for the company to pay its suppliers. Haemonetics showed varying trends in payables management. The period from September 2021 to September 2024 saw an increase in days of payables, indicating slower payment to suppliers. However, there was a notable decrease in payables days by December 2024, suggesting a possible focus on improving payables turnover.

Overall, examining these activity ratios provides insight into Haemonetics Corporation's operational efficiency in managing its inventory, sales, and payables over the analyzed period.

Long-term

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 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
Fixed asset turnover — — — — — — 4.03 4.00 3.76 3.61 3.52 3.56 3.84 3.99 4.17 4.21 3.14 3.68 3.75 3.89
Total asset turnover 0.56 0.54 0.54 0.52 0.60 0.58 0.62 0.62 0.60 0.60 0.58 0.56 0.53 0.52 0.52 0.50 0.48 0.67 0.64 0.66

The fixed asset turnover ratio of Haemonetics Corporation has shown fluctuations over the past few years, ranging from a low of 3.14 in March 2021 to a high of 4.21 in June 2021. This ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets, such as property, plant, and equipment. A higher ratio indicates better utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also displayed variability, with values fluctuating between 0.48 in March 2021 and 0.62 in June 30, 2023 and September 30, 2023. This ratio assesses the company's ability to generate sales from all its assets, including both fixed and current assets. A higher total asset turnover ratio suggests that the company is efficiently utilizing all its assets to generate sales revenue.

Overall, the trends in both fixed asset turnover and total asset turnover ratios indicate that Haemonetics Corporation has been effectively utilizing its assets to generate sales revenue, although there have been some fluctuations in efficiency over the years. It is important for the company to continue monitoring and managing its asset utilization to maintain or improve its operational efficiency in the long term.