IDEXX Laboratories Inc (IDXX)

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 3.87 3.65 3.56 3.54 3.71 3.84 4.11 4.50 4.93 5.00 5.20 5.21 5.41 5.05 4.62 5.03 5.34 4.96 5.06 5.18
Receivables turnover 7.72 7.62 7.29 7.25 7.50 8.13 7.65 7.72 8.29 7.97 7.62 7.21 7.71 7.16 7.36 7.80 8.30 8.14 8.01 8.01
Payables turnover 13.29 12.78 13.07 11.74 12.37 12.38 10.74 11.22 11.42 14.91 13.49 13.49 15.23 15.27 14.34 14.33 14.43 13.46 14.73 13.99
Working capital turnover 6.73 8.67 11.91 40.93 — — — 27.65 16.74 10.31 8.72 5.99 5.64 7.58 10.35 — — 30.63 24.53 280.51

Idexx Laboratories, Inc.'s activity ratios provide insights into the efficiency of the company's operations in managing its inventories, receivables, payables, and working capital.

1. Inventory turnover: The company's inventory turnover has been relatively stable over the quarters, ranging from 3.54 to 4.50 times per year. A higher ratio indicates that Idexx Laboratories is selling its inventory more quickly, which can be seen as positive, as it implies efficient inventory management.

2. Receivables turnover: The company's receivables turnover has fluctuated slightly but remained within a narrow range of 7.25 to 8.13 times per year. This suggests that Idexx Laboratories is efficient in collecting payments from customers, with a higher turnover indicating effective credit management.

3. Payables turnover: Idexx Laboratories has shown variability in its payables turnover, ranging from 11.74 to 13.29 times annually. A higher payables turnover implies that the company is taking longer to pay its suppliers, potentially indicating effective cash flow management.

4. Working capital turnover: Idexx Laboratories' working capital turnover has shown significant fluctuations, with the latest data showing 40.93 times per year. This indicates that the company is utilizing its working capital efficiently to generate sales revenue. However, the prior quarter data is missing for comparison.

In summary, Idexx Laboratories appears to have efficient working capital management, inventory turnover, and receivables turnover, indicating strong operational efficiency in these areas. The payables turnover fluctuates, which may indicate changes in the company's payment practices or relationships with suppliers.

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 94.36 99.92 102.53 103.24 98.50 94.99 88.83 81.15 74.06 72.98 70.24 70.02 67.46 72.30 79.01 72.63 68.35 73.60 72.18 70.45
Days of sales outstanding (DSO) days 47.30 47.91 50.08 50.34 48.67 44.88 47.74 47.26 44.02 45.82 47.89 50.64 47.32 50.94 49.57 46.81 43.95 44.85 45.59 45.58
Number of days of payables days 27.45 28.56 27.94 31.08 29.52 29.47 33.99 32.52 31.97 24.48 27.07 27.06 23.96 23.90 25.46 25.47 25.30 27.13 24.79 26.08

The activity ratios of Idexx Laboratories, Inc. show how efficiently the company is managing its assets and liabilities.

1. Days of Inventory on Hand (DOH): Idexx Laboratories has been increasing its DOH over the past quarters, indicating that the company is holding onto its inventory for a longer period of time before converting it into sales. This trend may suggest potential issues with inventory management efficiency or slow-moving inventory.

2. Days of Sales Outstanding (DSO): The DSO for Idexx Laboratories has been relatively stable over the quarters, indicating that the company is efficient in collecting payments from customers. A consistent DSO suggests that the company has effective credit policies in place and is able to collect receivables in a timely manner.

3. Number of Days of Payables: Idexx Laboratories has been managing its payables effectively, as reflected in the stable levels of payables days over the quarters. The company has been able to maintain a balance between timely payment to suppliers and preserving cash flow.

In conclusion, while there may be opportunities for improvement in inventory management efficiency, Idexx Laboratories demonstrates effectiveness in collecting payments from customers and managing its payables, which are crucial aspects of maintaining a healthy cash conversion cycle.

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 5.21 5.22 5.14 5.16 5.18 5.45 5.57 5.52 5.47 5.47 5.54 5.25 4.88 4.73 4.49 4.50 4.51 4.73 4.87 5.01
Total asset turnover 1.12 1.16 1.22 1.22 1.23 1.27 1.27 1.26 1.32 1.31 1.26 1.23 1.18 1.27 1.26 1.30 1.31 1.34 1.33 1.34

Idexx Laboratories, Inc. demonstrates a consistent performance in terms of its long-term activity ratios. The fixed asset turnover ratio has remained relatively stable over the past eight quarters, ranging from 5.14 to 5.57. This indicates that the company generates between $5.14 to $5.57 in sales for every dollar invested in fixed assets, reflecting efficient utilization of its long-term assets to generate revenue.

On the other hand, the total asset turnover ratio has also shown steady performance, fluctuating between 1.12 and 1.27 during the same period. This ratio signifies that Idexx Laboratories generates around $1.12 to $1.27 in sales for each dollar of total assets it holds. A higher total asset turnover ratio suggests that the company is effectively using its assets to generate revenue.

Overall, the stability and consistency of both fixed asset turnover and total asset turnover ratios indicate that Idexx Laboratories efficiently manages its long-term assets to generate sales and deliver value to its shareholders.