Heidrick & Struggles International (HSII)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 36.27 | 39.32 | 34.70 | 25.29 |
| Receivables turnover | 7.82 | 6.70 | 5.91 | 5.84 | 5.34 |
| Payables turnover | 45.10 | 59.82 | 41.98 | 74.76 | 59.13 |
| Working capital turnover | 4.09 | 4.60 | 4.79 | 4.07 | 4.87 |
Inventory turnover is not provided in the table, which indicates that specific data related to inventory turnover is not available for the years specified.
Receivables turnover for Heidrick & Struggles International, Inc. has shown a decreasing trend from 6.39 in 2019 to 7.25 in 2023. This suggests that the company is collecting its accounts receivables more frequently in recent years, which is a positive sign as it indicates efficient management of its accounts receivables.
Payables turnover has increased significantly from 2.59 in 2021 to 5.23 in 2023. This increase indicates that the company is paying its suppliers more frequently in recent years, which may signify a positive relationship with its suppliers and better cash flow management.
Working capital turnover has fluctuated over the years, from 4.87 in 2019 to 4.09 in 2023. Although there have been fluctuations, the general trend indicates that the company is efficiently utilizing its working capital to generate sales revenue.
Overall, while the data provided is limited, the analysis suggests that Heidrick & Struggles International, Inc. is managing its receivables effectively and improving its payables turnover, indicating efficient operations in terms of managing liquidity and working capital.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 10.06 | 9.28 | 10.52 | 14.43 |
| Days of sales outstanding (DSO) | days | 46.67 | 54.48 | 61.78 | 62.50 | 68.33 |
| Number of days of payables | days | 8.09 | 6.10 | 8.69 | 4.88 | 6.17 |
Heidrick & Struggles International, Inc.'s activity ratios for the past five years can be analyzed using the following metrics:
1. Days of Inventory on Hand (DOH): The data for this ratio is missing for all years provided, indicating that the company does not maintain significant levels of inventory or the information is not available. This may suggest that Heidrick & Struggles International operates on a more service-oriented business model with minimal inventory holding requirements.
2. Days of Sales Outstanding (DSO): The DSO ratio measures how long it takes for the company to collect payments after making a sale. From 2019 to 2023, Heidrick & Struggles International's DSO has shown a decreasing trend, indicating an improvement in collecting receivables more efficiently over time. The decreasing trend suggests that the company has been more effective in managing its accounts receivable and converting sales into cash.
3. Number of Days of Payables: The days of payables ratio reflects how long it takes for the company to pay its suppliers. The data shows variability over the years, with a significant increase in 2021 which may indicate a change in payment terms or vendor relationships during that period. The decreasing trend from 2021 to 2023 suggests that the company has been paying its payables more quickly in recent years, possibly to take advantage of early payment discounts or maintain good vendor relationships.
Overall, the trends in Heidrick & Struggles International, Inc.'s activity ratios indicate improvements in managing receivables and payables efficiently, although more detailed analysis would be needed to fully understand the implications of these trends on the company's operations and financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 29.12 | 35.87 | 37.23 | 26.79 | 25.33 |
| Total asset turnover | 0.91 | 0.92 | 0.91 | 0.80 | 0.86 |
The long-term activity ratios of Heidrick & Struggles International, Inc. provide insights into the efficiency of the company in utilizing its fixed assets and total assets to generate revenue over the years. The fixed asset turnover ratio indicates how effectively the company is utilizing its fixed assets to generate sales.
From 2019 to 2023, Heidrick & Struggles' fixed asset turnover ratio has generally trended upwards, indicating an improvement in the efficiency of generating sales from its fixed assets. The ratio increased from 25.33 in 2019 to 29.12 in 2023, showing that the company is generating more revenue per dollar of fixed assets invested.
On the other hand, the total asset turnover ratio measures the efficiency of the company in generating sales from all its assets, including fixed and current assets. The trend in this ratio has been relatively stable over the same period, with fluctuations but no clear increasing or decreasing trend. The total asset turnover ratio ranged from 0.80 in 2020 to 0.92 in 2022.
Overall, Heidrick & Struggles International, Inc. has shown improvement in utilizing its fixed assets efficiently to generate revenue, as indicated by the increasing trend in the fixed asset turnover ratio. However, the total asset turnover ratio reflects a relatively stable performance in generating sales from all assets over the years. This analysis suggests that the company may have focused on optimizing the use of its fixed assets to drive revenue growth and operational efficiency.