IPG Photonics Corporation (IPGP)

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 1.64 1.74 1.76 1.73 1.72 1.44 1.43 1.61 1.66 1.74 1.80 1.89 1.81 1.77 1.81 1.89 1.86 1.65 1.58 1.60
Receivables turnover 5.25 5.04 4.86 4.96 5.67 5.97 4.97 4.98 4.88 4.67 4.35 4.01 3.59 3.89 4.44 4.97 4.74 4.41 4.22 5.00
Payables turnover 26.06 25.17 23.09 21.42 18.91 14.52 13.87 16.80 13.69 14.42 14.36 15.59 25.70 17.51 15.74 17.37 25.92 22.62 17.73 16.74
Working capital turnover 0.76 0.78 0.81 0.84 0.84 0.80 0.80 0.74 0.72 0.71 0.67 0.65 0.62 0.64 0.67 0.74 0.77 0.81 0.83 0.89

IPG Photonics Corp's activity ratios provide insights into how effectively the company manages its inventory, receivables, payables, and working capital.

The Inventory turnover ratio has been relatively stable, ranging from 1.44 to 1.76 over the past eight quarters. This indicates that the company is converting its inventory into sales at a consistent rate. A higher turnover ratio suggests efficient inventory management.

The Receivables turnover ratio has been slightly declining from 7.48 in Q3 2022 to 5.88 in Q4 2023. This implies that IPG Photonics Corp is taking longer to collect payments from customers, which could impact its cash flow and liquidity.

On the other hand, the Payables turnover ratio has been steadily increasing, indicating that the company is taking longer to pay its suppliers. This may signal favorable payment terms for IPG Photonics Corp but could also strain relationships with vendors if not managed carefully.

The Working capital turnover ratio has fluctuated between 0.74 and 0.84 over the past two years. This ratio measures how effectively the company utilizes its working capital to generate sales. A higher turnover ratio suggests efficient utilization of working capital.

Overall, IPG Photonics Corp's activity ratios show varying trends in inventory management, receivables collection, payables payment, and working capital efficiency. Monitoring these ratios can help stakeholders assess the company's operational effectiveness and financial health.

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 222.15 210.07 207.60 210.84 212.69 253.50 255.75 226.64 219.99 210.12 202.79 192.80 201.33 206.56 201.52 192.61 196.21 220.91 230.65 227.88
Days of sales outstanding (DSO) days 69.49 72.37 75.11 73.59 64.41 61.15 73.41 73.32 74.73 78.24 83.91 90.98 101.60 93.78 82.29 73.51 77.01 82.83 86.51 72.95
Number of days of payables days 14.01 14.50 15.81 17.04 19.30 25.13 26.31 21.72 26.66 25.32 25.42 23.41 14.20 20.85 23.19 21.02 14.08 16.13 20.58 21.80

Days of inventory on hand (DOH) for IPG Photonics Corp has shown a decreasing trend over the last two quarters of 2023, indicating that the company has been able to manage its inventory levels more efficiently. However, the current DOH is still relatively high compared to the same period in 2022, which suggests that the company may still have excess inventory on hand.

Days of sales outstanding (DSO) has increased in Q4 2023 compared to the previous quarter, but it is still lower than the same period in 2022. This indicates that the company is collecting its accounts receivable at a slightly slower pace. However, the DSO remains relatively stable over the last few quarters, indicating consistent collections practices.

The number of days of payables has decreased steadily over the last two quarters, indicating that the company is taking longer to pay its suppliers. This might be a deliberate strategy to improve cash flow or negotiate better payment terms with suppliers.

Overall, IPG Photonics Corp should focus on reducing its inventory levels further to improve efficiency, while also monitoring its accounts receivable collections and payables management to maintain a balanced working capital 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 2.14 2.27 2.25 2.37 2.46 2.21 2.19 2.38 2.30 2.29 2.24 2.16 2.01 2.03 2.02 2.15 2.19 2.24 2.27 2.48
Total asset turnover 0.48 0.49 0.51 0.53 0.52 0.49 0.49 0.48 0.46 0.46 0.44 0.43 0.41 0.42 0.43 0.47 0.48 0.49 0.50 0.54

IPG Photonics Corp's fixed asset turnover has been relatively stable over the past eight quarters, averaging around 2.25. This indicates that the company generated $2.25 in sales for every dollar invested in fixed assets. The slight fluctuations in this ratio suggest that the company is effectively utilizing its fixed assets to generate revenue.

In terms of total asset turnover, IPG Photonics Corp's performance has also been steady, with the ratio hovering around 0.50. This implies that the company is generating $0.50 in sales for every dollar invested in total assets. While this ratio is lower compared to the fixed asset turnover, it still indicates efficient asset utilization.

Overall, the consistent performance of both fixed asset turnover and total asset turnover ratios suggests that IPG Photonics Corp is effectively managing its assets to generate sales. The company's ability to maintain stable turnover ratios signifies efficient operational performance and effective asset utilization.