Hologic Inc (HOLX)

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 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 4.22 4.40
Receivables turnover 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 5.65 5.90
Payables turnover 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 12.21 11.82
Working capital turnover 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 5.75 7.06

Hologic Inc's inventory turnover ratio has fluctuated over the past few periods, ranging from 2.60 to 5.82. The average inventory turnover indicates that the company is efficiently managing its inventory levels with an average turnover of around 3.5 times per year.

The receivables turnover ratio has also shown variability, with an average turnover ratio of approximately 5.8 times per year. This suggests that Hologic is collecting its receivables in a timely manner, though there have been minor fluctuations in the efficiency of collecting outstanding payments.

In terms of payables turnover, Hologic has generally been able to manage its payables effectively, with the ratio ranging from 7.34 to 17.92. The average turnover of payables is around 10.5 times per year, indicating that the company is efficiently managing its payments to suppliers.

The working capital turnover ratio has shown significant variability, ranging from 1.20 to 7.30. The average turnover of working capital is approximately 3.4 times per year. A higher turnover ratio indicates that Hologic is efficiently utilizing its working capital to generate sales.

Overall, the activity ratios suggest that Hologic Inc is effectively managing its inventory, receivables, payables, and working capital to support its operations and generate sales.

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 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 86.58 82.87
Days of sales outstanding (DSO) days 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 64.61 61.91
Number of days of payables days 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 29.88 30.87

Hologic Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH): The trend in the DOH ratio over the past few quarters indicates some fluctuations. The ratio has been varying between a high of 140.33 days in March 2023 and a low of 62.71 days in March 2020. A higher DOH suggests slower inventory turnover, potentially leading to higher carrying costs and obsolete inventory. On the other hand, a lower DOH indicates efficient inventory management.

2. Days of Sales Outstanding (DSO): The DSO ratio has also been fluctuating, ranging from a low of 47.90 days in September 2022 to a high of 99.44 days in September 2020. A decreasing DSO is generally positive as it implies faster collection of accounts receivable, improving cash flow. Conversely, a rising DSO could indicate issues with credit policies or collection efficiency.

3. Number of Days of Payables: The trend in the number of days of payables shows some variability as well. The ratio has ranged from a low of 20.37 days in March 2020 to a high of 49.70 days in June 2021. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which can be seen as a positive for cash flow management. However, excessively delaying payments may strain supplier relationships.

Overall, Hologic Inc should aim to strike a balance between these activity ratios to optimize its working capital management and operational efficiency. Monitoring and managing these ratios effectively can help the company improve cash flows, reduce costs, and enhance overall 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 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 7.06 7.00
Total asset turnover 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 0.51 0.50

The fixed asset turnover ratio for Hologic Inc has shown a declining trend over the recent quarters, decreasing from 10.66 in June 2022 to 7.53 in December 2023. This indicates that the company generated less in revenue for each dollar invested in fixed assets. The decreasing trend may suggest inefficiency in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also exhibited a decreasing trend, dropping from 0.66 in June 2021 to 0.47 in December 2023. This ratio measures the company's ability to generate sales from its total assets. The declining trend indicates a decrease in the efficiency of the company in generating revenue from all its assets.

Overall, the declining trends in both fixed asset turnover and total asset turnover ratios may raise concerns about Hologic Inc's asset utilization efficiency and its ability to generate revenue from its asset base. Further analysis and investigation are warranted to understand the underlying reasons for these deteriorations in activity ratios.