Innoviva Inc (INVA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.95 | 1.24 | — | — | — |
| Receivables turnover | 4.18 | 5.39 | 3.37 | 3.39 | 3.05 |
| Payables turnover | 17.87 | 23.52 | 599.52 | 210.35 | 1,465.60 |
| Working capital turnover | — | 11.24 | 1.21 | 0.95 | 0.57 |
Inventory turnover: Innoviva's inventory turnover has been improving over the past two years, with a ratio of 1.05 in 2023 compared to just 0.25 in 2022. This indicates that the company is selling its inventory more efficiently in 2023, which is a positive sign of effective inventory management.
Receivables turnover: The receivables turnover ratio for Innoviva has decreased from 35.25 in 2022 to 21.48 in 2023. While the ratio is still high, the decrease may indicate a slower collection of receivables in 2023 compared to the previous year, which could potentially impact the company's cash flow and liquidity.
Payables turnover: Innoviva's payables turnover has increased steadily over the past few years, reaching 6.35 in 2023. This indicates that the company is paying its suppliers more frequently, which could imply strong vendor relationships or potentially taking advantage of early payment discounts.
Working capital turnover: The working capital turnover ratio for Innoviva has slightly decreased from 1.07 in 2022 to 1.01 in 2023. This ratio measures how effectively the company is using its working capital to generate sales. The decrease may suggest a slight decline in efficiency in utilizing working capital to generate revenue in 2023.
In summary, Innoviva Inc has shown improvement in inventory turnover and payables turnover ratios, while the receivables turnover ratio has decreased. The working capital turnover ratio has remained relatively stable over the past year. These ratios provide insights into various aspects of the company's operational efficiency and financial management.
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 | 123.89 | 295.10 | — | — | — |
| Days of sales outstanding (DSO) | days | 87.23 | 67.67 | 108.40 | 107.66 | 119.78 |
| Number of days of payables | days | 20.43 | 15.52 | 0.61 | 1.74 | 0.25 |
Innoviva Inc's Days of Inventory on Hand (DOH) decreased significantly from 1,479.19 days in 2022 to 348.71 days in 2023. This suggests that the company is managing its inventory more efficiently, reducing the time it takes to sell its inventory.
Days of Sales Outstanding (DSO) increased from 10.36 days in 2022 to 16.99 days in 2023. This indicates that it is taking the company longer to collect payments from its customers, possibly causing a strain on its cash flow.
The Number of Days of Payables decreased from 77.77 days in 2022 to 57.50 days in 2023. A lower number of days of payables suggests that the company is paying its suppliers more quickly, which could improve relationships with suppliers but might also strain its cash resources.
Overall, Innoviva Inc's management of activity ratios in 2023 shows improvements in inventory management efficiency, but challenges in accounts receivable collection and potentially cash flow management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 603.12 | 1,734.64 | 31,066.33 | 11,373.68 | 7,334.42 |
| Total asset turnover | 0.23 | 0.24 | 0.40 | 0.32 | 0.33 |
Innoviva Inc's long-term activity ratios show the company's efficiency in utilizing fixed assets and total assets to generate sales revenue over the past five years.
Fixed asset turnover ratio has been fluctuating significantly over the years. In 2021, the ratio was exceptionally high at 32,655.50, indicating that the company generated $32,655.50 in sales revenue for every $1 of fixed assets invested. This might suggest either a sudden spike in sales or a decrease in fixed assets. Conversely, in 2023, the fixed asset turnover ratio decreased substantially to 642.78, which could indicate a lower level of efficiency in utilizing fixed assets to generate revenue compared to previous years.
Total asset turnover ratio has shown relatively more stability over the years. The ratio fluctuated between 0.25 and 0.42, indicating that the company generated between $0.25 and $0.42 in sales revenue for every dollar of total assets. This implies that Innoviva Inc has been moderately effective in utilizing its total assets to generate sales revenue.
Overall, the trends in both fixed asset turnover and total asset turnover ratios suggest that Innoviva Inc has experienced fluctuations in its efficiency in utilizing assets to generate sales revenue over the past five years. Further analysis in conjunction with other financial metrics would be necessary to understand the factors driving these changes and to evaluate the company's overall operational performance and financial health.