Hologic Inc (HOLX)
Activity ratios
Short-term
Turnover ratios
| Sep 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 2.65 | 3.05 | 3.07 | 3.17 | 2.87 | 2.60 | 2.71 | 2.99 | 3.30 | 3.67 | 3.65 | 3.66 | 3.51 | 3.62 | 3.72 | 3.92 | 4.23 | 4.49 | 5.82 | 4.94 |
| Receivables turnover | 6.71 | 6.12 | 5.92 | 6.44 | 5.88 | — | 6.43 | 7.62 | 7.22 | 6.35 | 5.20 | 5.97 | 6.00 | 4.39 | 3.73 | 3.67 | 4.53 | 5.57 | 5.82 | 5.19 |
| Payables turnover | 8.84 | 9.79 | 10.60 | 11.18 | 10.81 | 9.54 | 9.10 | 9.44 | 8.84 | 8.58 | 9.36 | 8.51 | 8.46 | 7.34 | 8.47 | 8.66 | 13.75 | 13.40 | 17.92 | 11.78 |
| Working capital turnover | 1.45 | 1.40 | 1.53 | 1.35 | 1.20 | 1.25 | 1.46 | 1.66 | 1.80 | 2.09 | 2.47 | 3.06 | 5.94 | 3.27 | 2.94 | 3.84 | 5.17 | 7.30 | 5.70 | 4.66 |
Hologic Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventories, receivables, payables, and working capital over time.
1. Inventory Turnover:
- Hologic's inventory turnover ratio fluctuated over the periods, ranging from 2.60 to 5.82 times. The company's inventory turnover has generally been in the range of 2.60 to 5.00 times, indicating that the company effectively manages its inventory levels to meet demand.
2. Receivables Turnover:
- The receivables turnover ratio varied from 3.67 to 7.62 times during the periods analyzed. This indicates that the company efficiently collects payments from its customers, with higher turnover numbers reflecting quicker collection periods.
3. Payables Turnover:
- Hologic's payables turnover ratio ranged from 7.34 to 17.92 times. A higher turnover ratio suggests that the company is paying its suppliers more frequently within a given period, which could indicate good relationships with suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio for Hologic ranged from 1.20 to 7.30 times, showing fluctuations in the efficiency of converting working capital into revenue. Higher ratios indicate that the company is generating sales efficiently using its working capital.
In summary, Hologic Inc's activity ratios demonstrate that the company effectively manages its inventory, receivables, payables, and working capital, indicating good operational efficiency and effectiveness.
Average number of days
| Sep 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 137.66 | 119.49 | 118.71 | 115.08 | 127.14 | 140.33 | 134.67 | 122.04 | 110.76 | 99.54 | 100.00 | 99.62 | 104.11 | 100.72 | 98.21 | 93.10 | 86.26 | 81.33 | 62.71 | 73.93 |
| Days of sales outstanding (DSO) | days | 54.37 | 59.64 | 61.69 | 56.66 | 62.08 | — | 56.75 | 47.90 | 50.52 | 57.52 | 70.23 | 61.09 | 60.80 | 83.22 | 97.86 | 99.44 | 80.64 | 65.56 | 62.70 | 70.32 |
| Number of days of payables | days | 41.27 | 37.27 | 34.44 | 32.64 | 33.76 | 38.25 | 40.10 | 38.69 | 41.28 | 42.53 | 39.01 | 42.91 | 43.14 | 49.70 | 43.07 | 42.13 | 26.55 | 27.24 | 20.37 | 30.99 |
The Days of Inventory on Hand (DOH) for Hologic Inc have shown some fluctuation over the past few quarters, ranging from 86.26 days to 137.66 days. This indicates that the company has been carrying its inventory for varying lengths of time. Generally, a lower number of days of inventory on hand is preferred as it suggests efficient inventory management.
The Days of Sales Outstanding (DSO) have ranged from 47.90 days to 99.44 days. This metric reflects the average number of days it takes for the company to collect its accounts receivable. Lower DSO is typically better as it indicates a faster collection of receivables and better liquidity.
The number of days of payables ranges from 20.37 days to 43.14 days, reflecting the average number of days it takes for the company to pay its suppliers. Longer payment periods can indicate that the company is taking advantage of favorable credit terms, but exceptionally long payables periods may raise concerns about liquidity and supplier relationships.
Overall, a thorough analysis of these activity ratios suggests that Hologic Inc should aim to optimize its inventory management to reduce the Days of Inventory on Hand, improve collections to lower the Days of Sales Outstanding, and carefully balance the payment periods to suppliers to maintain good relationships and liquidity.
Long-term
| Sep 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.49 | 7.55 | 7.53 | 7.80 | 8.19 | 8.15 | 9.03 | 10.10 | 10.66 | 10.64 | 9.91 | 9.97 | 10.28 | 9.96 | 8.82 | 7.68 | 7.22 | 7.47 | 7.49 | 7.15 |
| Total asset turnover | 0.44 | 0.45 | 0.47 | 0.44 | 0.43 | 0.43 | 0.48 | 0.54 | 0.56 | 0.57 | 0.59 | 0.63 | 0.66 | 0.66 | 0.60 | 0.52 | 0.48 | 0.49 | 0.54 | 0.52 |
Hologic Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in utilizing its assets to generate sales.
The fixed asset turnover ratio indicates how effectively the company generates revenue from its fixed assets. Hologic Inc's fixed asset turnover has been consistently high, averaging around 8 to 10 times over the past few years. This indicates that the company has been efficient in utilizing its fixed assets to generate sales, with slight fluctuations observed in recent quarters.
On the other hand, the total asset turnover ratio measures the company's ability to generate sales from all its assets. Hologic Inc's total asset turnover has ranged from 0.43 to 0.66 over the same period. The gradual increase in total asset turnover from 2020 to 2022 suggests that the company has been improving its efficiency in generating sales from its total assets. However, a slight decrease was observed in the latest quarter.
Overall, Hologic Inc's long-term activity ratios reflect a strong performance in terms of asset utilization and efficiency in generating sales. The consistently high fixed asset turnover and improving total asset turnover indicate that the company is effectively managing its assets to drive revenue growth over time.