Integer Holdings Corp (ITGR)

Short-term

Turnover ratios

Inventory turnover has been fluctuating over the past five years, ranging from 4.87 to 5.68, indicating that Integer Holdings Corp is efficiently managing its inventory levels on average. Receivables turnover has seen a slight increase from 6.08 to 6.65, suggesting that the company is collecting its receivables more effectively.

Payables turnover has been decreasing steadily over the years, dropping from 15.28 to 9.80, which may indicate that the company is taking longer to pay its suppliers. However, it is essential to note that a lower payables turnover ratio could also result from changing supplier terms or strategic payment decisions.

Working capital turnover has shown a decreasing trend over the period, declining from 5.32 to 4.02. This could indicate that Integer Holdings Corp is becoming less efficient in generating sales from its working capital. It is crucial for the company to closely monitor and manage its working capital efficiency to ensure it is maximizing its resources for revenue generation.

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Average number of days

Days of Inventory on Hand (DOH) measures how many days it takes for a company to turn its inventory into sales. Integer Holdings Corp's DOH has been relatively stable over the past five years, ranging from 64.28 days to 74.92 days. The increase in DOH in 2023 compared to 2022 may indicate slightly slower inventory turnover.

Days of Sales Outstanding (DSO) shows the average number of days it takes for the company to collect payments after making a sale. Integer Holdings Corp's DSO fluctuated between 53.82 days and 60.03 days over the period. The decrease in DSO in 2023 compared to 2022 suggests improved efficiency in collecting receivables.

Number of Days of Payables indicates how long a company takes to pay its suppliers. Integer Holdings Corp's payables days ranged from 23.90 days to 39.76 days, with a notable increase in 2022 compared to 2021. The decrease in payables days in 2023 compared to 2022 may indicate the company is paying its suppliers more promptly.

Overall, Integer Holdings Corp's activity ratios show mixed performance in managing its inventory, receivables, and payables efficiently over the years. The company may need to focus on optimizing inventory levels, improving receivables collection, and managing payables effectively to enhance its working capital management.

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Long-term

The fixed asset turnover ratio measures how efficiently Integer Holdings Corp generates sales revenue from its investment in fixed assets. The trend indicates a fluctuation in the company's ability to utilize its fixed assets over the years. In 2023, the fixed asset turnover ratio was 3.80, indicating that for every dollar invested in fixed assets, the company generated $3.80 in sales. This was a decrease from the previous year and continued a downward trend since 2019 when the ratio was at its peak of 5.11.

On the other hand, the total asset turnover ratio reflects how efficiently the company generates revenue from all its assets, including fixed and current assets. The trend for this ratio also fluctuates, indicating varying efficiency levels in utilizing all assets to generate sales. In 2023, the total asset turnover ratio was 0.54, which was an improvement compared to the previous year and the highest among the 5 years analyzed.

Overall, the fluctuations in both the fixed asset turnover and total asset turnover ratios suggest varying levels of efficiency in generating sales from the company's assets over the years. The company may need to further analyze its asset utilization strategies to improve efficiency and maximize returns on its investments.