Heidrick & Struggles International (HSII)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 36.27 | 39.32 | 34.70 |
| Receivables turnover | 8.31 | 7.82 | 6.70 | 5.91 | 5.84 |
| Payables turnover | 42.97 | 45.10 | 59.82 | 41.98 | 74.76 |
| Working capital turnover | 3.85 | 4.09 | 4.60 | 4.79 | 4.07 |
The activity ratios of Heidrick & Struggles International show certain trends over the period analyzed.
1. Inventory turnover: The company's inventory turnover has been consistently high, increasing from 34.70 in 2020 to 39.32 in 2021 before slightly decreasing to 36.27 in 2022. However, data for 2023 and 2024 are not available. This indicates that the company efficiently manages its inventory levels and sells its products effectively.
2. Receivables turnover: Heidrick & Struggles International has shown a trend of increasing receivables turnover over the years, from 5.84 in 2020 to 8.31 in 2024. This signifies that the company is successful in collecting payments from its customers in a timely manner.
3. Payables turnover: The payables turnover ratio has shown some fluctuation, from 74.76 in 2020 to 42.97 in 2024. This suggests that the company is managing its payables efficiently, although there was a significant decrease in 2021.
4. Working capital turnover: The working capital turnover ratio has been relatively stable over the years, with a slight decrease from 4.07 in 2020 to 3.85 in 2024. This indicates that the company's efficiency in generating revenue relative to its working capital has remained relatively consistent.
Overall, Heidrick & Struggles International demonstrates effective management of its operational activities, with strong inventory turnover, increasing receivables turnover, and stable payables turnover and working capital turnover ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 10.06 | 9.28 | 10.52 |
| Days of sales outstanding (DSO) | days | 43.95 | 46.67 | 54.48 | 61.78 | 62.50 |
| Number of days of payables | days | 8.49 | 8.09 | 6.10 | 8.69 | 4.88 |
Based on the provided data, we can analyze the activity ratios of Heidrick & Struggles International as follows:
1. Days of Inventory on Hand (DOH):
- In 2020, the company held inventory for an average of 10.52 days before selling it.
- By 2021, the DOH decreased to 9.28 days, indicating an improvement in inventory management efficiency.
- In 2022, the DOH increased slightly to 10.06 days, suggesting a potential build-up of inventory.
- However, the data for 2023 and 2024 is not available to assess the trend in inventory management.
2. Days of Sales Outstanding (DSO):
- Customers took an average of 62.50 days to pay for goods/services in 2020, indicating a lag in receivables collection.
- The DSO decreased to 61.78 days in 2021 and further improved to 54.48 days in 2022, reflecting better credit management and faster collections.
- By 2023 and 2024, the DSO continued to decrease significantly to 46.67 days and 43.95 days, respectively, indicating efficient receivables management.
3. Number of Days of Payables:
- In 2020, the company took an average of 4.88 days to pay its suppliers, indicating a quick turnover of payables.
- However, by 2021, the number of days of payables increased to 8.69 days, suggesting a slower payment cycle.
- In 2022, the days of payables decreased to 6.10 days, indicating a potential improvement in negotiating payment terms.
- The data for 2023 and 2024 shows a slight increase in the number of days of payables to 8.09 days and 8.49 days, respectively, signaling a potentially slower payment cycle.
Overall, from the analysis of activity ratios for Heidrick & Struggles International, it can be observed that the company has generally improved its inventory and receivables management efficiency over the years, although there seems to be some fluctuation in payables management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 21.59 | 29.12 | 35.87 | 37.23 | 26.79 |
| Total asset turnover | 0.93 | 0.91 | 0.92 | 0.91 | 0.80 |
The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. The trend for Heidrick & Struggles International's Fixed Asset Turnover ratio shows a generally increasing trend from 2020 to 2022, peaking at 37.23 in 2021, and then slightly decreasing in 2023 and 2024. This suggests that the company was able to generate more revenue for each dollar invested in fixed assets during the earlier years, but the efficiency slightly decreased in the later years.
On the other hand, the Total Asset Turnover ratio indicates how effectively the company is utilizing all its assets to generate sales. The trend for Heidrick & Struggles International's Total Asset Turnover ratio shows a consistent improvement from 2020 to 2024, increasing from 0.80 to 0.93. This indicates that the company's overall asset utilization efficiency has been improving over the years, implying that management has been successful in generating more sales for every dollar invested in total assets.
In summary, while the Fixed Asset Turnover ratio of Heidrick & Struggles International exhibited fluctuations over the years, the Total Asset Turnover ratio consistently improved. This suggests that the company's overall asset efficiency in generating sales has been on a positive trajectory, even though there were variations in how efficiently fixed assets were utilized during the same period.