Innoviva Inc (INVA)
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 | 2.95 | 2.68 | 2.20 | 1.74 | 1.24 | 0.72 | 6.13 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 4.18 | 4.66 | 4.03 | 4.85 | 5.25 | 5.12 | 3.29 | 3.83 | 3.37 | 3.51 | 3.33 | 3.65 | 3.39 | 3.35 | 3.47 | 3.30 | 3.11 | 3.63 | 3.65 | 4.33 |
| Payables turnover | 17.87 | 28.74 | 22.41 | 14.53 | 23.52 | 13.33 | 5.61 | 9.23 | 599.52 | 208.36 | 631.27 | 1,236.14 | 210.35 | 17.25 | 63.86 | 116.43 | 1,465.60 | 427.49 | 12.31 | 97.80 |
| Working capital turnover | — | 0.99 | 0.93 | 1.13 | 10.94 | 1.16 | 1.34 | 1.72 | 1.21 | 8.81 | 2.43 | 0.88 | 0.95 | 30.37 | 0.58 | 0.58 | 0.58 | 0.69 | 0.79 | 1.03 |
Innoviva Inc's activity ratios provide insight into how efficiently the company manages its working capital, inventory, receivables, and payables.
1. Inventory Turnover: The inventory turnover ratio shows how effectively Innoviva is selling its inventory. The trend indicates an improvement over the quarters, with Q4 2023 showing a ratio of 1.05, up from 0.25 in Q4 2022. This suggests that the company is managing its inventory more efficiently.
2. Receivables Turnover: The receivables turnover ratio measures how many times the company collects its accounts receivable during a specific period. The trend shows some fluctuations but remains relatively high, indicating that Innoviva is efficient in collecting payments from customers.
3. Payables Turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. A higher ratio indicates better management of payables. Innoviva shows fluctuations in this ratio over the quarters, with Q3 2023 having the highest ratio of 10.47.
4. Working Capital Turnover: This ratio measures how effectively a company utilizes its working capital to generate sales. Innoviva's working capital turnover has been relatively stable, indicating consistent efficiency in generating sales with its working capital.
Overall, Innoviva's activity ratios demonstrate efficient management of inventory, receivables, payables, and working capital. The company has shown improvements in some ratios over time, indicating better operational efficiency and financial management.
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 | 123.89 | 136.01 | 166.16 | 210.28 | 295.10 | 509.67 | 59.51 | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 87.23 | 78.38 | 90.59 | 75.20 | 69.49 | 71.28 | 111.11 | 95.25 | 108.40 | 103.89 | 109.73 | 99.89 | 107.66 | 108.99 | 105.32 | 110.77 | 117.35 | 100.67 | 100.12 | 84.28 |
| Number of days of payables | days | 20.43 | 12.70 | 16.29 | 25.13 | 15.52 | 27.39 | 65.08 | 39.53 | 0.61 | 1.75 | 0.58 | 0.30 | 1.74 | 21.16 | 5.72 | 3.14 | 0.25 | 0.85 | 29.66 | 3.73 |
Innoviva Inc's activity ratios provide insight into the efficiency of the company in managing its operations and cash flows.
1. Days of Inventory on Hand (DOH):
- The DOH has been fluctuating over the quarters, ranging from as low as 348.71 days to as high as 7,022.98 days.
- A decreasing trend in DOH indicates an improvement in inventory management efficiency, whereas a significant increase in DOH may suggest inventory management challenges or potentially obsolete inventory.
2. Days of Sales Outstanding (DSO):
- The DSO also shows variability across quarters, with the lowest value being 6.59 days and the highest at 19.20 days.
- A decreasing DSO indicates that the company is collecting revenue from sales more quickly, which is favorable for cash flow management and liquidity.
3. Number of Days of Payables:
- The days of payables indicate the average number of days it takes for the company to pay its suppliers.
- Innoviva Inc's number of days of payables has shown fluctuations, ranging from 34.85 days to 377.40 days.
- A longer days of payables period may suggest that the company is able to hold onto cash longer, but may also strain relationships with suppliers if extended too far.
Overall, analyzing these three activity ratios together can provide a comprehensive understanding of how efficiently Innoviva Inc is operating in terms of managing its inventory, accounts receivable, and accounts payable. It is important for the company to strive for a balance in these ratios to ensure optimal efficiency in its working capital management.
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 | 603.12 | 735.44 | 1,644.66 | 1,626.37 | 1,689.34 | 2,036.07 | 2,084.45 | 1,876.23 | 31,066.33 | 23,718.80 | 18,252.68 | 13,546.88 | 11,373.68 | 9,351.79 | 7,718.38 | 6,443.83 | 7,486.21 | 10,455.50 | 1,811.12 | 1,715.89 |
| Total asset turnover | 0.23 | 0.22 | 0.24 | 0.26 | 0.23 | 0.25 | 0.32 | 0.32 | 0.40 | 0.40 | 0.44 | 0.30 | 0.32 | 0.33 | 0.32 | 0.34 | 0.34 | 0.37 | 0.38 | 0.43 |
The fixed asset turnover ratio for Innoviva Inc has shown a declining trend from Q1 2022 to Q4 2023, indicating that the company is generating less revenue in relation to its fixed assets over time. However, the ratio remains at relatively high levels, suggesting that the company is efficiently utilizing its fixed assets to generate sales.
In contrast, the total asset turnover ratio fluctuates over the periods, with a peak in Q2 2022. This ratio measures the company's ability to generate sales from all assets, including fixed and current assets. The declining trend from Q2 2022 to Q4 2023 indicates that the company may be becoming less efficient at utilizing all its assets to generate revenue.
Overall, the fixed asset turnover ratio suggests that Innoviva Inc efficiently uses its fixed assets to generate revenue, while the total asset turnover ratio indicates fluctuations in the company's overall asset utilization efficiency. Further analysis and comparison with industry benchmarks would be necessary to fully evaluate Innoviva Inc's long-term activity ratios.