Innoviva Inc (INVA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.09 | 1.21 | 0.25 | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.13 | 1.01 | 0.82 | 1.27 | 1.00 |
Innoviva Inc's activity ratios indicate how effectively the company is managing its assets and liabilities to generate sales revenue.
1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period.
- Innoviva Inc's inventory turnover was not available for 2020 and 2021. In 2022, the ratio was 0.25, indicating that the company's inventory was turning over slowly.
- However, there was a significant improvement in 2023 and 2024, with ratios of 1.21 and 1.09, respectively, suggesting better inventory management and more efficient sales.
2. Receivables Turnover:
- The receivables turnover ratio assesses how quickly a company collects cash from its customers.
- Innoviva Inc's receivables turnover data was not provided for any of the years, making it difficult to gauge the efficiency of the company's accounts receivable management.
3. Payables Turnover:
- The payables turnover ratio evaluates how quickly a company pays off its suppliers.
- The data for Innoviva Inc's payables turnover was not available for the years reviewed, making it challenging to assess the company's payment cycle efficiency.
4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company is using its working capital to generate sales.
- Innoviva Inc's working capital turnover ranged from 0.82 to 1.27 from 2020 to 2024, with 2022 showing a slight decline in efficiency.
- Overall, the company's working capital turnover improved in 2024 to 1.13, indicating that Innoviva Inc is using its working capital more effectively in generating sales revenue.
In conclusion, while Innoviva Inc showed improvements in inventory turnover and working capital turnover ratios over the years, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall activity efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 336.35 | 301.00 | 1,479.19 | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Innoviva Inc, we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- As of December 31, 2022, Innoviva Inc had 1,479.19 days of inventory on hand, indicating an inefficient management of inventory levels which could lead to higher carrying costs and potential write-offs.
- By December 31, 2024, the number of days of inventory on hand decreased to 336.35 days, which could suggest a more effective inventory management strategy over time, leading to potential cost savings and improved liquidity.
2. Days of Sales Outstanding (DSO):
- Data for Days of Sales Outstanding from 2020 to 2024 is not provided, indicating that information on the average number of days it takes for Innoviva Inc to collect its accounts receivable is not available for analysis.
3. Number of Days of Payables:
- The data shows that the number of days of payables for Innoviva Inc is not available for the years from 2020 to 2024, suggesting that information regarding the average number of days it takes the company to pay its payables is not provided for assessment.
In conclusion, the analysis of Innoviva Inc's activity ratios based on the data reveals a significant improvement in managing inventory levels over the years, potentially leading to enhanced efficiency and financial performance. However, the absence of data on Days of Sales Outstanding and Number of Days of Payables limits a comprehensive evaluation of the company's overall operational efficiency regarding accounts receivable and payables management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 96.46 | 32,655.50 | 12,028.36 |
| Total asset turnover | 0.28 | 0.25 | 0.27 | 0.42 | 0.34 |
Innoviva Inc's fixed asset turnover has exhibited significant fluctuations over the years, with a drastic increase from 2020 to 2021, followed by a sharp decline in 2022 and then a substantial drop to very low levels in 2023 and 2024. This erratic pattern suggests potential issues with how efficiently the company is utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio shows a more stable trend, albeit at relatively low levels. The ratio remained below 0.5 for all years, indicating that the company is not generating a high level of sales relative to its total assets. This could imply that Innoviva Inc may not be efficiently utilizing all its assets to generate revenue.
Overall, the analysis of long-term activity ratios for Innoviva Inc reveals mixed results – while the total asset turnover suggests a consistent but low level of asset utilization for generating sales, the fixed asset turnover indicates significant fluctuations and possibly inefficient use of fixed assets.