IDEXX Laboratories Inc (IDXX)

Short-term

Turnover ratios

Inventory turnover for IDEXX Laboratories Inc has shown a gradual decline from 5.41 in December 2020 to 3.98 in December 2024. This indicates that the company's inventory might be moving at a slower pace compared to previous years. A lower inventory turnover ratio could suggest excess inventory or potential inefficiencies in managing and selling inventory.

Receivables turnover data is unavailable for all the years provided, implying that we cannot assess how quickly IDEXX is collecting on its receivables from customers. An absence of this ratio may indicate a lack of visibility into the company's accounts receivable management efficiency.

Similarly, payables turnover data is also not available, making it challenging to evaluate how well IDEXX is managing its payables and vendor payments.

In terms of working capital turnover, the ratio in 2021 spiked significantly to 16.74 compared to the other years. This could indicate that the company efficiently utilized its working capital that year to generate sales. However, with fluctuations in the following years (2020, 2023, and 2024), a clearer trend on the efficiency of using working capital in generating revenue is not readily apparent.

Overall, while the inventory turnover and working capital turnover ratios provide some insights into IDEXX Laboratories Inc's operational efficiency, the lack of data for receivables and payables turnover restricts a comprehensive analysis of the company's entire activity ratios.

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Average number of days

Analyzing the activity ratios of IDEXX Laboratories Inc, we focus on the Days of Inventory on Hand (DOH) metric. The DOH measures how many days it takes for the company to turn its inventory into sales. Comparing the data over the years, we observe an increasing trend in DOH from 67.46 days in 2020 to 91.79 days in 2024. This indicates that it took longer for IDEXX Laboratories to sell its inventory in the later years, which may signal inefficiencies in inventory management.

Next, we consider the Days of Sales Outstanding (DSO), which represents the average number of days it takes for the company to collect payment from its customers. The data provided shows that DSO was not available for any of the years, indicating that there is no information on how quickly IDEXX Laboratories collected its receivables.

Lastly, looking at the Number of Days of Payables, which shows how long the company takes to pay its suppliers, we find that this data is also not available for any of the years provided. Without this information, it is challenging to assess IDEXX Laboratories' payment practices and their impact on the company's working capital management.

In conclusion, based on the available data, IDEXX Laboratories Inc experienced an increase in its Days of Inventory on Hand over the years, while information on its Days of Sales Outstanding and Number of Days of Payables is not provided, limiting a comprehensive analysis of the company's activity ratios. Further insights would be needed to evaluate the efficiency of IDEXX Laboratories' working capital management and operational performance.

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Long-term

IDEXX Laboratories Inc's fixed asset turnover ratio has improved consistently over the years, increasing from 4.88 in 2020 to 5.47 in 2021, and then slightly decreasing to 5.18 in 2022. However, data for 2023 and 2024 are missing, so we cannot track the trend for those years.

This indicates that IDEXX is generating more revenue relative to its investment in fixed assets, which is a positive sign of operational efficiency and asset utilization.

In contrast, the total asset turnover ratio, which measures the company's ability to generate sales from its total assets, shows a mixed trend. It improved from 1.18 in 2020 to 1.32 in 2021, suggesting better efficiency in utilizing its assets to generate revenue. However, the ratio declined to 1.23 in 2022, indicating a decrease in revenue generated per dollar of total assets. The subsequent decrease to 1.12 in 2023 and then a slight increase to 1.18 in 2024 further highlight the fluctuating nature of IDEXX's asset utilization efficiency.

Overall, while the fixed asset turnover ratio reflects a positive trend in utilizing fixed assets to generate revenue, the total asset turnover ratio shows a fluctuating pattern in efficiently utilizing total assets for revenue generation. Additional context and further analysis would be necessary to understand the factors driving these trends and their implications for IDEXX Laboratories Inc.