Innovex International, Inc (INVX)

Short-term

Turnover ratios

The activity ratios of Innovex International, Inc. exhibit notable fluctuations across the analyzed period, reflecting the company's operational efficiency in managing inventory, receivables, payables, and working capital.

Inventory Turnover: The company's inventory turnover ratio demonstrates a generally upward trend from a low of approximately 1.28 times in September 2020 to a peak of around 2.14 times in June 2025. This progression indicates an improvement in inventory management, suggesting shorter holding periods and more efficient sales cycles. The ratio experienced fluctuations, notably declining from a high of 1.85 in September 2022 to 1.18 in September 2024 before recovering to 2.14 in mid-2025. Such volatility may correspond with adjustments in inventory levels, sales strategies, or supply chain dynamics.

Receivables Turnover: The receivables turnover ratio fluctuated within the range of approximately 1.31 to 3.92, with a marked increase toward the end of the period. The ratio was relatively stable from September 2020 through June 2023, hovering around 1.4 to 2.0, indicating a moderate collection cycle. A significant rise is observed post-September 2023, reaching 2.99 and then 3.92 in June 2025, implying substantial improvements in receivables collection efficiency. These developments could be attributable to stricter credit policies, enhanced collection processes, or shifts toward more cash-conservative customer segments.

Payables Turnover: The payables turnover ratio has demonstrated variability, ranging from a low of 4.22 in September 2024 to a high of 9.13 in June 2025. An increasing trend suggests a tendency to pay suppliers more promptly over time, which may reflect better cash flow management or strategic supplier negotiations. Conversely, periods of lower turnover ratios indicate extended credit periods granted to suppliers, possibly aimed at optimizing working capital.

Working Capital Turnover: The working capital turnover ratio remained relatively steady around 0.45 to 0.55 from September 2020 through June 2023, revealing a consistent utilization of working capital to generate sales. A significant enhancement is observed from September 2023 onward, where the ratio jumps to over 2.0—peaking at 1.65 in June 2025. This indicates increasingly efficient use of working capital in supporting sales activities, likely driven by improved operational efficiencies, better inventory turnover, and receivables collections.

Overall, these activity ratios depict a trajectory of enhanced operational efficiency over time. The firm appears to have made consistent strides in inventory management and receivables collection, alongside more disciplined payables practices, culminating in a higher utilization of working capital to support sales growth. This evolution suggests a strategic emphasis on optimizing operational cycles and working capital management to improve overall performance.

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Average number of days

The activity ratios of Innovex International, Inc. reveal notable trends in inventory management, receivables collection efficiency, and payables payment practices over the analyzed periods.

Days of Inventory on Hand (DOH):
From September 2020 to June 2021, the company's DOH remained relatively stable, fluctuating around 284 to 296 days, indicating a consistently high level of inventory holdings relative to sales. Starting in December 2021, there was a significant decrease, with DOH dropping sharply to approximately 219 days, and further declining to around 198 days by June 2022. This downward trend persisted through 2023, reaching as low as approximately 180 days in September 2023, which suggests improved inventory turnover and potentially more efficient inventory management. However, in late 2023 and early 2024, DOH increased again, peaking at over 237 days around March 2024, before declining to approximately 170 days in June 2025. The fluctuating levels indicate periods of both inventory accumulation and turnover acceleration.

Days of Sales Outstanding (DSO):
Initially, DSO was elevated, exceeding 225 days in September 2020 and consistently remaining above 225 days through 2021 and into 2022, suggesting relatively slow receivables collection. A notable decline occurred in September 2023, when DSO sharply dropped to approximately 122 days, indicating a significant improvement in collection efficiency. This positive development continued into late 2023 and mid-2024, with DSO decreasing further to around 128 days by March 2025, reflecting enhanced credit and collections management practices. Conversely, earlier periods with high DSO point to extended credit terms or challenges in receivable collections.

Number of Days of Payables:
The company's payables period exhibited variability over the period. Early years (2020–2021) saw payables durations fluctuating between approximately 50 and 75 days. Notably, the period around September 2024 experienced an increase in payables days to approximately 86.5 days, which then decreased to about 55 days by the end of 2024. The trend toward shorter payables in early 2025, reaching approximately 40 days, suggests a possible strategy of paying suppliers more promptly or resolving payment terms. Variability in payables periods indicates adjustments in cash management policies and supplier payment strategies over time.

Overall, the activity ratios demonstrate a trend toward improved efficiency in inventory turnover and receivables collection in recent periods, while payables practices have shown some fluctuations, reflecting ongoing adjustments in managing working capital.

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Long-term

The analysis of Innovex International, Inc.’s long-term activity ratios reveals notable trends over the period under review. The Fixed Asset Turnover ratio data is unavailable, indicating a lack of recent or consistent information on how effectively the company utilizes its fixed assets to generate sales. This absence precludes in-depth analysis of fixed asset efficiency.

In contrast, the Total Asset Turnover ratio demonstrates a gradual overall improvement from the beginning of the recorded period. Starting at approximately 0.33 as of September 30, 2020, the ratio exhibits a steady upward trajectory, reaching approximately 0.71 by June 30, 2025. This nearly doubling of the ratio over the span suggests a significant enhancement in the company's ability to generate sales from its total assets. Such an increase could be indicative of improved operational efficiency, optimized asset utilization, or strategic asset management.

Between September 2020 and March 2023, the ratio experienced modest fluctuations, remaining within the range of approximately 0.30 to 0.38, reflecting relative stability. However, from the third quarter of 2023 onwards, there is a marked acceleration in growth, with the ratio increasing sharply from 0.45 to 0.71 by mid-2025. This sharp rise signifies a potentially transformative phase where the company is significantly more efficient in deploying its assets to generate revenue.

Overall, while the absence of fixed asset turnover data limits comprehensive insight into fixed asset management, the consistent improvement in total asset turnover indicates a positive trend in the company's asset utilization efficiency. The trend suggests effective strategizing in making better use of available assets to expand sales, particularly in the recent periods, which could point to operational improvements or growth-intensive initiatives undertaken by Innovex International, Inc.