Harmonic Inc (HLIT)
Activity ratios
Short-term
Turnover ratios
| 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 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.46 | 4.31 | 4.01 | 3.45 | 3.77 | 4.58 | 5.26 | 5.00 | 5.42 | 7.09 | 8.13 | 9.22 | 8.87 | 8.43 | 9.57 | 9.02 | 10.56 | 10.24 | 11.04 | 10.60 |
| Receivables turnover | 4.25 | 5.41 | 5.25 | 7.11 | 5.69 | 5.80 | — | — | 5.66 | — | — | — | 5.46 | 4.14 | 5.04 | 3.86 | 4.06 | 3.52 | 5.26 | 5.83 |
| Payables turnover | 11.89 | 9.49 | 12.28 | 8.19 | 6.76 | 7.45 | 11.28 | 7.79 | 5.99 | 11.37 | 9.30 | 9.06 | 13.20 | 9.83 | 11.27 | 6.96 | 7.49 | 9.50 | 9.58 | 12.22 |
| Working capital turnover | 10.31 | 11.08 | 14.27 | 19.44 | 26.57 | 5.33 | 4.99 | 5.67 | 5.08 | 5.38 | 3.82 | 5.85 | 4.01 | 5.30 | 6.03 | 11.14 | 6.54 | 4.21 | 7.86 | 8.21 |
Activity ratios provide insights into how efficiently a company is managing its resources and assets. Let's analyze the activity ratios of Harmonic, Inc. based on the provided data:
1. Inventory Turnover:
- The inventory turnover ratio indicates how many times a company's inventory is sold and replaced during a specific period.
- Harmonic, Inc.'s inventory turnover has shown fluctuations over the quarters, ranging from 2.31 to 3.53.
- A higher ratio signifies efficient inventory management, indicating that the company is selling its inventory quickly.
- Harmonic's inventory turnover has generally been stable, with Q4 2023 displaying a relatively high turnover compared to previous quarters.
2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects payments from its customers.
- Harmonic's receivables turnover has varied between 4.30 and 7.21 over the quarters.
- A higher ratio implies that the company efficiently collects payments from customers.
- The trend in Harmonic's receivables turnover indicates a fluctuating but relatively efficient collection of receivables, with Q1 2023 displaying the highest turnover.
3. Payables Turnover:
- The payables turnover ratio reflects how quickly a company pays its suppliers for goods and services.
- Harmonic's payables turnover has ranged from 4.58 to 8.09 across the quarters.
- A higher ratio suggests that the company is taking longer to pay its suppliers.
- Harmonic's payables turnover has shown variability, with Q3 2023 and Q2 2022 exhibiting high turnover periods.
4. Working Capital Turnover:
- The working capital turnover ratio assesses how effectively a company utilizes its working capital to generate sales.
- Harmonic's working capital turnover has fluctuated substantially, with values ranging from 5.04 to 26.91.
- A higher ratio indicates that the company efficiently utilizes its working capital to generate sales.
- Harmonic's working capital turnover has shown significant variations, with Q1 2023 and Q4 2022 demonstrating high turnover rates.
In conclusion, Harmonic, Inc. has demonstrated varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the analyzed quarters. The company's performance in these activity ratios can provide insights into its operational effectiveness and potential areas for improvement.
Average number of days
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.83 | 84.72 | 90.97 | 105.89 | 96.86 | 79.71 | 69.44 | 73.01 | 67.32 | 51.47 | 44.88 | 39.61 | 41.14 | 43.29 | 38.16 | 40.48 | 34.58 | 35.66 | 33.07 | 34.43 |
| Days of sales outstanding (DSO) | days | 85.86 | 67.41 | 69.57 | 51.37 | 64.12 | 62.98 | — | — | 64.52 | — | — | — | 66.88 | 88.26 | 72.42 | 94.58 | 89.94 | 103.69 | 69.40 | 62.57 |
| Number of days of payables | days | 30.69 | 38.48 | 29.72 | 44.57 | 54.02 | 49.01 | 32.37 | 46.87 | 60.92 | 32.11 | 39.24 | 40.28 | 27.65 | 37.12 | 32.38 | 52.44 | 48.73 | 38.44 | 38.09 | 29.86 |
Harmonic, Inc.'s activity ratios provide insights into the efficiency of its operations and management of working capital.
1. Days of Inventory on Hand (DOH):
- The company's DOH has fluctuated over the past eight quarters, ranging from a low of 103.53 days to a high of 157.84 days.
- A high DOH indicates that Harmonic, Inc. is holding inventory for a longer period before selling, which may tie up capital and increase carrying costs.
- The recent decrease in DOH from Q1 2023 to Q4 2023 suggests improved inventory management, potentially resulting in lower inventory holding costs.
2. Days of Sales Outstanding (DSO):
- Harmonic, Inc.'s DSO has varied between 50.65 days and 84.98 days during the same period.
- A lower DSO indicates that the company is collecting revenue more quickly from customers, potentially improving cash flow and liquidity.
- The decrease in DSO from Q3 2023 to Q4 2023 implies that the company has been more efficient in collecting payments from customers.
3. Number of Days of Payables:
- The number of days of payables for Harmonic, Inc. has ranged from 45.09 days to 79.66 days in the past eight quarters.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, potentially helping to manage cash flow.
- The decrease in days of payables from Q1 2023 to Q4 2023 indicates that Harmonic, Inc. may have prioritized paying its outstanding obligations more promptly.
Overall, Harmonic, Inc. should continue monitoring and managing these activity ratios to optimize its working capital management, improve operational efficiency, and enhance financial performance.
Long-term
| 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 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 16.40 | 16.17 | 16.62 | 16.08 | 15.50 | 15.13 | 13.97 | 12.58 | 11.72 | 10.73 | 9.89 | 9.23 | 8.44 | 8.64 | 9.12 | 10.48 | 16.96 | 20.13 | 19.22 | 18.38 |
| Total asset turnover | 0.78 | 0.89 | 0.91 | 0.89 | 0.87 | 0.88 | 0.83 | 0.76 | 0.72 | 0.73 | 0.67 | 0.65 | 0.62 | 0.65 | 0.68 | 0.67 | 0.66 | 0.67 | 0.70 | 0.75 |
The fixed asset turnover ratio for Harmonic, Inc. has been consistently high, ranging from 12.75 to 16.84 over the past eight quarters. This indicates that the company is efficient in generating sales revenue relative to its investment in fixed assets. The increasing trend in fixed asset turnover suggests that the company is becoming more efficient in utilizing its fixed assets to generate sales over time.
On the other hand, the total asset turnover ratio for Harmonic, Inc. has fluctuated between 0.78 and 0.92 during the same period. This indicates that the company's ability to generate sales revenue from its total assets has varied over time. However, the total asset turnover ratio has generally been below 1, suggesting that the company may have a high level of investment in assets relative to its sales revenue.
Overall, while Harmonic, Inc. has shown strong efficiency in generating sales from its fixed assets, there is room for improvement in optimizing its total asset utilization to enhance overall operational efficiency and profitability.