Krystal Biotech Inc (KRYS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 14.09 | — | — | — | — |
| Receivables turnover | 1.33 | — | — | — | — |
| Payables turnover | 23.81 | 19.53 | 4.81 | 7.16 | 6.55 |
| Working capital turnover | 0.10 | 0.00 | 0.00 | 0.00 | 0.00 |
Inventory turnover:
- The inventory turnover ratio for Krystal Biotech Inc has been 14.09 in 2023. This indicates that the company is able to sell and replace its inventory approximately 14 times during the year. A high inventory turnover ratio usually suggests efficient inventory management.
Receivables turnover:
- The receivables turnover ratio was 1.33 in 2023. This indicates that the company collects its accounts receivable approximately 1.33 times during the year. A higher ratio would be preferable as it signifies a faster collection of receivables.
Payables turnover:
- The payables turnover ratio for Krystal Biotech Inc has shown an increasing trend over the years, reaching 23.81 in 2023. This indicates that the company is paying its suppliers more frequently. A higher payables turnover ratio can suggest better working capital management.
Working capital turnover:
- The working capital turnover ratio in 2023 was 0.10, indicating that the company generated sales of approximately 0.10 times the amount of working capital it had during the year. A higher ratio would indicate more efficient use of working capital to generate sales. Over the years, the company seems to have been able to generate more sales relative to its working capital.
Overall, the activity ratios reflect Krystal Biotech Inc's efficiency in managing its inventory, accounts receivable, accounts payable, and working capital to support its sales activities. Continued monitoring and improvement in these ratios can help the company optimize its operations and financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 25.91 | — | — | — | — |
| Days of sales outstanding (DSO) | days | 275.17 | — | — | — | — |
| Number of days of payables | days | 15.33 | 18.69 | 75.89 | 51.01 | 55.70 |
Krystal Biotech's activity ratios provide insights into the efficiency of its operations and management of its working capital.
1. Days of Inventory on Hand (DOH):
- In 2023, the company had 25.91 days of inventory on hand, indicating that, on average, it took around 25.91 days for the company to sell its inventory.
- The absence of data for prior years limits the ability to compare performance trends over time. However, a lower DOH ratio generally suggests efficient inventory management and quicker turnover.
2. Days of Sales Outstanding (DSO):
- In 2023, the company had 275.17 days of sales outstanding, suggesting that on average, it took around 275.17 days for the company to collect its accounts receivable.
- Lack of historical data hinders the ability to assess improvements or deterioration in the collection of receivables. A lower DSO ratio is preferable as it signifies faster collection of receivables, improving cash flow.
3. Number of Days of Payables:
- In 2023, the company took 15.33 days to pay its suppliers, a decrease from the previous year indicating a more efficient management of accounts payable.
- The trend in days of payables over time can provide insights into the company's supplier relationships and working capital management. A longer payables period can suggest better cash flow management but may also potentially strain supplier relationships.
Overall, the activity ratios of Krystal Biotech in 2023 show varying levels of efficiency in managing inventory turnover, accounts receivable collection, and accounts payable. Tracking these ratios over multiple periods can help identify operational strengths and areas for improvement in working capital management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.35 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total asset turnover | 0.07 | 0.00 | 0.00 | 0.00 | 0.00 |
The long-term activity ratios of Krystal Biotech Inc over the past five years indicate a notable trend in the utilization of its assets. The fixed asset turnover ratio, which measures how efficiently the company generates sales from its fixed assets, shows a significant improvement from 2020 onwards, reaching 0.35 in 2023. This suggests that Krystal Biotech has effectively increased its revenue generation relative to its investment in fixed assets.
On the other hand, the total asset turnover ratio, reflecting the company's ability to generate sales from all its assets, also displays a positive trend over the years, notably increasing from 2019 to 2023. However, it remains relatively low at 0.07 in 2023, indicating that there is room for Krystal Biotech to enhance its overall asset utilization efficiency.
Overall, the improvement in both the fixed asset turnover and total asset turnover ratios signifies Krystal Biotech's efforts to enhance operational efficiency and optimize the utilization of its assets in generating revenue. Further enhancements in asset turnover ratios can contribute to the company's long-term profitability and sustainability.