Keysight Technologies Inc (KEYS)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.26 | 3.39 | 3.52 | 3.63 | 3.78 | 3.94 | 3.91 | 3.98 | 4.01 | 4.19 | 4.27 | 4.16 | 4.03 | 3.95 | 3.82 | 4.00 | 4.26 | 4.46 | 7.13 | 7.00 |
| Receivables turnover | 6.61 | 5.56 | 6.27 | 6.47 | 6.03 | 5.68 | 5.98 | 6.40 | 7.08 | 6.46 | 7.19 | 6.85 | 6.58 | 6.41 | 7.24 | 8.65 | 6.56 | 6.08 | 6.75 | 6.19 |
| Payables turnover | 11.90 | 11.68 | 11.86 | 11.39 | 10.58 | 9.70 | 9.98 | 10.30 | 10.96 | 11.34 | 13.19 | 12.97 | 13.43 | 13.35 | 15.38 | 16.62 | 14.01 | 12.42 | 20.09 | 19.57 |
| Working capital turnover | 2.73 | 1.98 | 1.57 | 1.67 | 1.83 | 1.92 | 1.99 | 2.04 | 1.96 | 1.96 | 1.85 | 1.91 | 1.76 | 1.84 | 1.79 | 1.79 | 1.87 | 1.95 | 2.78 | 3.05 |
Keysight Technologies Inc's activity ratios show some fluctuation over the past quarters.
1. Inventory turnover indicates the number of times a company sells and replaces its inventory during a period. The trend shows a slight decrease from 2.30 in Q4 2022 to 1.84 in Q1 2024, indicating a longer time to sell off inventory.
2. Receivables turnover measures how many times a company collects its average accounts receivable balance during a period. The ratio has varied but generally remained stable around 6 times a year, with a slight peak in Q1 2024 at 6.61.
3. Payables turnover reflects how quickly a company pays off its suppliers. The trend shows some fluctuation, with the ratio declining from 6.76 in Q4 2023 to 6.69 in Q1 2024, but remaining relatively consistent around the 6.5 range.
4. Working capital turnover shows how efficiently a company is utilizing its working capital to generate sales. The ratio fluctuates, with higher values indicating more efficient use of working capital. Notably, there was a significant increase in Q1 2024 to 2.73 compared to previous quarters.
Overall, while there are some fluctuations in the activity ratios of Keysight Technologies Inc, the company generally maintains efficient turnover of inventory, receivables, payables, and working capital, indicating effective management of its operational resources.
Average number of days
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 111.80 | 107.61 | 103.81 | 100.56 | 96.53 | 92.74 | 93.28 | 91.73 | 91.11 | 87.13 | 85.56 | 87.85 | 90.62 | 92.38 | 95.64 | 91.22 | 85.70 | 81.87 | 51.20 | 52.15 |
| Days of sales outstanding (DSO) | days | 55.21 | 65.67 | 58.25 | 56.42 | 60.49 | 64.25 | 61.08 | 57.01 | 51.57 | 56.51 | 50.77 | 53.27 | 55.44 | 56.99 | 50.40 | 42.18 | 55.68 | 60.06 | 54.08 | 58.93 |
| Number of days of payables | days | 30.68 | 31.25 | 30.77 | 32.03 | 34.51 | 37.61 | 36.56 | 35.45 | 33.32 | 32.18 | 27.67 | 28.15 | 27.19 | 27.34 | 23.73 | 21.96 | 26.05 | 29.38 | 18.17 | 18.65 |
Keysight Technologies Inc's activity ratios indicate how efficiently the company is managing its working capital.
1. Days of Inventory on Hand (DOH): The trend in DOH shows an increase from Q1 2023 to Q1 2024, indicating that the company is holding onto inventory for a longer period. This may be a sign of overstocking or slow-moving inventory. However, the increase seems to have started stabilizing from Q3 2022 onwards.
2. Days of Sales Outstanding (DSO): The DSO shows a slight fluctuation between quarters, with a decrease in Q1 2024 compared to the previous quarter. This suggests that the company is collecting receivables more efficiently in the latest quarter.
3. Number of Days of Payables: The trend in payables days shows fluctuations over the eight quarters, with no clear increasing or decreasing pattern. However, it is essential to note that payables days are generally shorter than inventory days and receivables days, indicating that the company is paying its suppliers relatively quickly.
Overall, while inventory management may need attention due to the increase in DOH, the slight improvement in DSO and stable payables days reflect some level of efficiency in working capital management.
Long-term
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 6.93 | 7.18 | 7.42 | 7.49 | 7.62 | 7.86 | 7.89 | 7.74 | 7.46 | 7.60 | 7.90 | 7.75 | 7.21 | 7.09 | 7.06 | 7.30 | 7.60 | 7.47 | 7.34 | 7.26 |
| Total asset turnover | 0.59 | 0.63 | 0.63 | 0.64 | 0.66 | 0.67 | 0.67 | 0.66 | 0.65 | 0.64 | 0.62 | 0.60 | 0.57 | 0.58 | 0.58 | 0.62 | 0.64 | 0.65 | 0.66 | 0.66 |
Keysight Technologies Inc's long-term activity ratios provide insight into how efficiently the company is utilizing its assets to generate revenues.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate sales.
- Keysight's fixed asset turnover has shown a decreasing trend from Q1 2024 to Q2 2022, indicating a decrease in the efficiency of utilizing the fixed assets to generate sales.
- The ratio ranged from a high of 7.89 in Q3 2022 to a low of 6.93 in Q1 2024, which suggests that the company may be experiencing challenges in optimizing the use of its fixed assets.
2. Total Asset Turnover:
- The total asset turnover ratio assesses the company's ability to generate sales from all its assets.
- Keysight's total asset turnover ratio has also exhibited a declining trend from Q1 2024 to Q2 2022, indicating a decrease in the overall efficiency of utilizing all assets to drive sales.
- The ratio ranged from 0.66 in Q1 2023 to 0.59 in Q1 2024, reflecting a potential decline in the company's ability to generate sales relative to its total asset base.
Overall, these long-term activity ratios suggest that Keysight Technologies Inc may be facing challenges in efficiently utilizing both fixed and total assets to drive sales growth. It would be advisable for the company to review its asset management strategies to improve operational efficiency and enhance revenue generation.