Integra LifeSciences Holdings (IART)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.72 | 4.12 | 4.33 | 4.11 | 4.07 |
| Receivables turnover | 5.73 | 5.72 | 6.62 | 5.76 | 5.31 |
| Payables turnover | 15.70 | 13.08 | 22.23 | 23.34 | 11.37 |
| Working capital turnover | 1.98 | 1.79 | 1.89 | 1.55 | 2.77 |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate revenue. Let's analyze Integra Lifesciences Holdings Corp's activity ratios based on the provided data for the years 2019 to 2023.
1. Inventory Turnover:
Integra Lifesciences' inventory turnover has fluctuated slightly over the past five years, ranging from 1.68 to 1.88 times. This ratio indicates how many times the company's inventory is sold and replaced during the year. A higher inventory turnover ratio suggests that the company is efficiently managing its inventory levels, which can lead to lower holding costs and reduced risk of obsolete inventory.
2. Receivables Turnover:
The receivables turnover ratio for Integra Lifesciences has shown a consistent performance, with values ranging from 5.51 to 6.65. This ratio reflects how quickly the company collects payments from its customers. A higher receivables turnover ratio indicates that the company is collecting its receivables efficiently, which leads to faster cash conversion and reduced credit risk.
3. Payables Turnover:
Integra Lifesciences' payables turnover ratio has varied significantly over the years, ranging from 4.99 to 9.67. This ratio measures how quickly the company pays its suppliers. A higher payables turnover ratio implies that the company is managing its payables effectively, possibly negotiating favorable credit terms and optimizing cash flow.
4. Working Capital Turnover:
The working capital turnover ratio for Integra Lifesciences demonstrates some variability, with values between 1.64 and 2.88. This ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher working capital turnover ratio suggests that the company is effectively using its current assets to support sales activities, potentially leading to improved profitability.
Overall, Integra Lifesciences Holdings Corp's activity ratios reflect a mixed performance in managing its assets and liabilities efficiently over the past five years. While the company has shown consistency in receivables turnover, there are fluctuations in inventory turnover, payables turnover, and working capital turnover ratios. Further analysis and comparison with industry benchmarks can provide a more comprehensive understanding of the company's operational efficiency and financial performance.
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 | 98.12 | 88.69 | 84.26 | 88.82 | 89.73 |
| Days of sales outstanding (DSO) | days | 63.68 | 63.83 | 55.16 | 63.39 | 68.75 |
| Number of days of payables | days | 23.25 | 27.90 | 16.42 | 15.64 | 32.11 |
Integra Lifesciences Holdings Corp's activity ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its suppliers.
Days of Inventory on Hand (DOH) measures the average number of days it takes for the company to sell its inventory. The trend indicates a slight increase in inventory holding period from 2019 to 2023, which may signify a potential inefficiency in managing inventory levels during this period. However, further analysis is needed to understand the impact on the company's operations and profitability.
Days of Sales Outstanding (DSO) measures how long it takes for the company to collect its accounts receivable. The DSO has been relatively stable over the years, indicating that Integra Lifesciences is efficient in collecting payments from customers. A consistent DSO suggests effective credit and collection practices.
Number of Days of Payables indicates the time it takes for the company to pay its suppliers. The significant decrease in the number of days of payables from 2019 to 2023 suggests a more aggressive approach in settling supplier payments. While this may indicate stronger supplier relationships, it could also lead to potential cash flow challenges if not managed carefully.
Overall, analyzing Integra Lifesciences Holdings Corp's activity ratios over the years reveals fluctuations in the efficiency of managing inventory, collecting receivables, and paying suppliers. Further investigation into the underlying factors driving these changes is essential to fully assess the company's operational performance and financial health.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 4.37 | 4.84 | 4.92 | 4.52 | 4.33 |
| Total asset turnover | 0.39 | 0.39 | 0.41 | 0.36 | 0.44 |
The fixed asset turnover ratio for Integra Lifesciences Holdings Corp has been relatively stable over the past five years, ranging between 4.50 and 5.00. This indicates that the company generates around 4.50 to 5.00 times in net sales for every dollar invested in fixed assets. The consistency of this ratio suggests that the company efficiently utilizes its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has fluctuated more significantly, ranging from 0.38 to 0.46 over the same period. This ratio reflects how efficiently the company utilizes all its assets to generate revenue. A lower ratio typically indicates that the company is not generating enough sales compared to its total assets. In this case, the total asset turnover ratio has been below 0.41 for the majority of the years, which may indicate that Integra Lifesciences Holdings Corp could improve its utilization of total assets to generate more revenue.
Overall, while the company appears to effectively utilize its fixed assets, there may be room for improvement in optimizing the utilization of its total assets to enhance revenue generation.