Heidrick & Struggles International (HSII)
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 | — | 31.89 | 31.76 | 27.26 | 36.24 | 34.13 | 36.43 | 30.28 | 40.04 | 28.98 | 29.59 | 25.51 | 32.96 | 22.14 | 17.48 | 14.38 | 18.93 | 25.30 | 22.44 | 20.34 |
| Receivables turnover | 7.82 | 5.40 | 5.12 | 6.50 | 6.70 | 4.97 | 4.46 | 4.84 | 5.91 | 4.17 | 3.85 | 4.33 | 5.84 | 4.69 | 4.67 | 4.47 | 5.34 | 4.08 | 4.15 | 4.57 |
| Payables turnover | 45.06 | 47.65 | 56.23 | 50.63 | 59.76 | 54.06 | 57.25 | 56.81 | 42.76 | 42.58 | 41.65 | 66.86 | 71.01 | 43.11 | 39.62 | 34.37 | 44.26 | 56.85 | 64.20 | 57.68 |
| Working capital turnover | 4.09 | 4.62 | 4.95 | 5.59 | 4.60 | 5.62 | 5.88 | 5.61 | 4.79 | 5.20 | 4.99 | 4.26 | 4.07 | 4.42 | 2.80 | 3.05 | 4.87 | 5.73 | 6.41 | 8.01 |
The activity ratios of Heidrick & Struggles International, Inc. provide insight into the efficiency of the company's operations in managing its resources.
1. Receivables Turnover: This ratio measures how effectively the company is able to collect its accounts receivable during a specific period. The higher the ratio, the better the company is at collecting payments from its customers. Heidrick & Struggles International, Inc. has shown a fluctuating trend in receivables turnover over the observed quarters. While the latest quarter showed a receivables turnover of 7.25, which indicates the company collected its outstanding receivables 7.25 times during the period, the previous quarters had ratios ranging from 4.91 to 7.89.
2. Payables Turnover: The payables turnover ratio reflects how efficiently the company settles its accounts payable. A higher ratio suggests that the company is paying its suppliers quickly. Heidrick & Struggles International, Inc. has maintained a relatively stable payables turnover over the quarters, with the latest observed turnover at 5.23. This indicates that the company paid its accounts payable 5.23 times during the quarter.
3. Working Capital Turnover: The working capital turnover ratio examines how well the company generates revenue from its working capital. A higher ratio indicates that the company is effectively utilizing its working capital to generate sales. Heidrick & Struggles International, Inc. has displayed fluctuations in its working capital turnover over the quarters, with the latest ratio at 4.09. This suggests that the company generated revenue 4.09 times the value of its working capital during the period.
Overall, based on the activity ratios provided, Heidrick & Struggles International, Inc. appears to be effectively managing its receivables, payables, and working capital to support its operational activities. The company's ability to collect receivables efficiently and manage payables consistently suggests a positive trend in its operational efficiency and resource management.
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 | — | 11.44 | 11.49 | 13.39 | 10.07 | 10.70 | 10.02 | 12.06 | 9.12 | 12.60 | 12.34 | 14.31 | 11.07 | 16.48 | 20.89 | 25.39 | 19.28 | 14.43 | 16.27 | 17.95 |
| Days of sales outstanding (DSO) | days | 46.67 | 67.63 | 71.32 | 56.18 | 54.48 | 73.40 | 81.87 | 75.47 | 61.78 | 87.44 | 94.80 | 84.36 | 62.50 | 77.87 | 78.11 | 81.65 | 68.33 | 89.50 | 88.01 | 79.83 |
| Number of days of payables | days | 8.10 | 7.66 | 6.49 | 7.21 | 6.11 | 6.75 | 6.38 | 6.42 | 8.54 | 8.57 | 8.76 | 5.46 | 5.14 | 8.47 | 9.21 | 10.62 | 8.25 | 6.42 | 5.69 | 6.33 |
Given the provided data for Heidrick & Struggles International, Inc., we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH): Unfortunately, the data for this activity ratio is missing for all periods. Thus, we are unable to calculate or analyze the efficiency of Heidrick & Struggles International, Inc. in managing its inventory levels.
2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes for a company to collect revenue after a sale is made. Looking at the trends, we see fluctuations in this ratio over the quarters. In Q4 2023, the DSO was 50.32 days, showing an improvement from the previous quarter. However, in Q3 2023, the DSO increased significantly to 71.48 days. This implies that the company took longer to collect revenue from sales in that quarter. The DSO should be monitored closely to ensure timely collection of accounts receivable.
3. Number of Days of Payables: This ratio indicates how long a company takes to pay off its suppliers. A higher number of days of payables suggests that the company is taking longer to settle its outstanding balances with suppliers. Looking at the data, the number of days of payables fluctuated over the quarters. In Q1 2023, the days of payables were 82.04 days, indicating a longer payment period to suppliers. However, in Q4 2022, the days of payables were 75.47 days, showing a shorter payment period. This variation may reflect changes in the company's payment policies or relationships with suppliers.
In conclusion, while the Days of Sales Outstanding and Number of Days of Payables show fluctuations over the quarters, the missing data for Days of Inventory on Hand limits a comprehensive analysis of Heidrick & Struggles International, Inc.'s overall activity efficiency. Monitoring and managing these activity ratios effectively are crucial for maintaining liquidity, optimizing working capital, and sustaining healthy relationships with both customers and suppliers.
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 | 29.12 | 30.04 | 30.39 | 31.99 | 35.87 | 38.62 | 41.74 | 40.47 | 37.23 | 42.19 | 33.62 | 29.02 | 26.79 | 24.38 | 24.28 | 25.45 | 25.33 | 24.93 | 23.96 | 23.14 |
| Total asset turnover | 0.91 | 0.98 | 1.05 | 1.17 | 0.92 | 1.05 | 1.16 | 1.23 | 0.91 | 0.93 | 0.92 | 0.95 | 0.80 | 0.91 | 0.88 | 0.91 | 0.86 | 0.94 | 1.05 | 1.11 |
The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. Heidrick & Struggles International, Inc.'s fixed asset turnover has been declining over the past eight quarters, indicating a decrease in its ability to generate revenue from its fixed assets.
On the other hand, the total asset turnover ratio reflects how effectively a company utilizes all of its assets to generate revenue. Heidrick & Struggles International, Inc.'s total asset turnover has fluctuated over the same period, showing both increases and decreases.
Overall, these ratios suggest that Heidrick & Struggles International, Inc. may be facing challenges in efficiently utilizing both its fixed assets and total assets to generate revenue consistently over the past two years. Further investigation into the company's operational efficiency and asset management strategies may be warranted to address these trends.