Krystal Biotech Inc (KRYS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.29 | 14.09 | — | — | — |
| Receivables turnover | 2.83 | 1.33 | — | — | — |
| Payables turnover | 22.81 | 23.81 | 19.53 | 4.81 | 7.16 |
| Working capital turnover | 0.46 | 0.10 | 0.00 | 0.00 | 0.00 |
Krystal Biotech Inc's activity ratios provide insights into how efficiently the company manages its assets and operations.
1. Inventory Turnover:
- The inventory turnover ratio measures how many times inventory is sold and replaced over a period. Krystal Biotech's inventory turnover was not available for the years 2020-2022, but in 2023 it was 14.09 and in 2024 it decreased to 4.29. A higher turnover indicates better inventory management and efficiency in selling goods.
2. Receivables Turnover:
- The receivables turnover ratio shows how efficiently the company collects outstanding receivables. For the years provided, the ratio was not available for 2020-2022, but in 2023 it was 1.33 and improved to 2.83 in 2024. A higher turnover suggests that the company is collecting revenue more quickly.
3. Payables Turnover:
- The payables turnover ratio reflects how quickly a company pays its suppliers. Krystal Biotech's payables turnover increased from 7.16 in 2020 to 22.81 in 2024. A higher ratio indicates that the company is paying its suppliers faster, which could have implications for cash flow management and supplier relationships.
4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company uses its working capital to generate sales. The ratio was 0.00 for the years 2020-2022, but in 2023 it increased to 0.10 and further improved to 0.46 in 2024. A higher turnover implies that the company is efficiently using its working capital to support its operations and generate revenue.
Overall, analyzing Krystal Biotech's activity ratios over the years provides valuable insights into the company's operational efficiency and financial management practices.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 85.11 | 25.91 | — | — | — |
| Days of sales outstanding (DSO) | days | 128.86 | 275.17 | — | — | — |
| Number of days of payables | days | 16.00 | 15.33 | 18.69 | 75.89 | 51.01 |
Based on the provided data for Krystal Biotech Inc, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- For the years 2020, 2021, and 2022, the exact number of days of inventory on hand is not available.
- In 2023, Krystal Biotech held an average of 25.91 days of inventory on hand, indicating a shorter time period for which inventory was held.
- However, in 2024, the days of inventory on hand increased significantly to 85.11 days, suggesting a potential buildup of inventory that may require closer monitoring.
2. Days of Sales Outstanding (DSO):
- Similar to inventory, there is no data available for DSO for the years 2020, 2021, and 2022.
- In 2023, the company had a high DSO of 275.17 days, indicating that it took a significant amount of time to collect revenue from sales.
- The DSO improved in 2024, dropping to 128.86 days, which suggests a more efficient collection process compared to the previous year.
3. Number of Days of Payables:
- Krystal Biotech's number of days of payables has fluctuated over the years:
- In 2020, the company had 51.01 days of payables.
- This increased to 75.89 days in 2021 but then decreased significantly to 18.69 days in 2022, indicating potentially more prompt payment practices.
- Further improvements were seen in 2023 and 2024, with the number of days of payables decreasing to 15.33 days and 16.00 days, respectively.
Overall, analyzing these activity ratios provides insights into Krystal Biotech's management of inventory, collection of receivables, and payment of payables. The company's efficiency in these areas can impact its working capital management and overall financial health.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.91 | 0.35 | 0.00 | 0.00 | 0.00 |
| Total asset turnover | 0.28 | 0.07 | 0.00 | 0.00 | 0.00 |
Based on the data provided for Krystal Biotech Inc's long-term activity ratios, it is evident that the company has shown a significant improvement in its fixed asset turnover ratio over the years. The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales revenue.
In 2020, the fixed asset turnover was 0.00, indicating that the company was not effectively utilizing its fixed assets to generate revenue. However, this ratio saw a gradual increase over the years, reaching 1.91 in 2024. This substantial improvement suggests that Krystal Biotech has become more efficient in using its fixed assets to drive sales growth.
Furthermore, the total asset turnover ratio, which measures how efficiently a company is utilizing all its assets to generate revenue, also exhibited a similar trend. While the total asset turnover was 0.00 in 2020 and 2021, it improved to 0.28 in 2024. This upward trend indicates that the company has been able to generate more revenue from its total assets in recent years.
Overall, the improving trend in both the fixed asset turnover and total asset turnover ratios suggests that Krystal Biotech Inc has become more efficient in utilizing its assets to drive revenue growth and improve its overall operational efficiency over the years.