Leidos Holdings Inc (LDOS)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Inventory turnover 43.88 41.75 41.91 42.56 44.02 41.12 41.78 42.90 42.37 41.84 42.50 42.78 42.91 45.15 40.72 38.26 35.36 34.02 — 132.58
Receivables turnover 6.24 5.94 5.79 6.36 6.18 5.99 5.80 6.13 6.21 5.80 5.75 6.28 5.90 5.84 5.89 5.75 6.41 6.48 6.36 6.40
Payables turnover 19.61 — — 17.93 — — — 16.80 — — — 16.94 — — — 14.45 — — — 16.12
Working capital turnover 21.33 18.19 14.74 15.21 15.94 20.59 28.97 — — — — 35.22 60.80 85.53 37.75 28.47 — — — 23.16

Inventory Turnover:
Leidos Holdings Inc's inventory turnover ratio has been relatively stable over the years, ranging between 34.02 and 45.15. This indicates that the company efficiently manages its inventory levels and replenishes stock at a consistent pace.

Receivables Turnover:
The receivables turnover ratio for Leidos has been slightly fluctuating within a narrow range, suggesting that the company collects its receivables efficiently. The ratio has ranged from 5.75 to 6.48, reflecting the effectiveness of the company in converting its credit sales into cash.

Payables Turnover:
The payables turnover ratio for Leidos has shown an increasing trend, indicating that the company is taking longer to pay its suppliers. The ratio has steadily increased from 14.45 in December 2020 to 19.61 in December 2024, which may indicate a change in the company's payment terms or supplier relationships.

Working Capital Turnover:
The working capital turnover ratio for Leidos has varied significantly over the years, reflecting fluctuations in the company's efficiency in generating revenue relative to its working capital. The ratio ranged from 15.21 to 85.53, with higher values indicating better utilization of working capital to drive sales. The ratio peaked in June 2021 but has since decreased, suggesting a potential change in operational efficiency.

Average number of days

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 8.32 8.74 8.71 8.58 8.29 8.88 8.74 8.51 8.61 8.72 8.59 8.53 8.51 8.08 8.96 9.54 10.32 10.73 — 2.75
Days of sales outstanding (DSO) days 58.48 61.48 63.02 57.43 59.06 60.94 62.95 59.58 58.75 62.88 63.45 58.16 61.87 62.53 61.97 63.43 56.94 56.33 57.38 57.05
Number of days of payables days 18.62 — — 20.36 — — — 21.73 — — — 21.55 — — — 25.27 — — — 22.64

Leidos Holdings Inc's activity ratios indicate the efficiency of its operations.

1. Days of Inventory on Hand (DOH): Leidos Holdings Inc had an average of 8.74 days of inventory on hand as of June 30, 2024. The decreasing trend in DOH from 10.73 days on June 30, 2020, to 8.74 days on June 30, 2024, suggests the company is managing its inventory well, improving efficiency in managing and selling inventory.

2. Days of Sales Outstanding (DSO): The company had an average DSO of 61.48 days as of September 30, 2024. The fluctuating trend in DSO, with peaks and troughs over the years, indicates varying effectiveness in collecting receivables. A lower DSO signifies quicker collection of receivables, which is favorable for cash flow management.

3. Number of Days of Payables: Leidos Holdings Inc had an average of 18.62 days of payables as of December 31, 2024. The decreasing trend in days of payables from 25.27 days on December 31, 2020, to 18.62 days on December 31, 2024, suggests the company is taking longer to pay its suppliers. This may indicate potential liquidity management strategies, but it also implies potential strain on relationships with suppliers.

Overall, Leidos Holdings Inc appears to be effectively managing its inventory, collection of receivables, and payment of payables, which is essential for optimizing working capital efficiency and overall financial health.

Long-term

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Fixed asset turnover 17.91 16.20 16.17 17.70 16.21 15.99 15.84 17.91 21.15 21.02 20.65 20.50 20.39 20.27 19.42 20.36 20.80 20.37 23.28 38.66
Total asset turnover 1.26 1.20 1.23 1.22 1.19 1.14 1.11 1.10 1.08 1.09 1.07 1.04 1.02 1.02 1.01 0.98 0.98 0.95 1.04 1.18

Leidos Holdings Inc's fixed asset turnover ratio shows a declining trend over the past few years, from 38.66 in December 2019 to 17.91 in December 2024. This indicates that the company's ability to generate sales from its fixed assets has been decreasing, which may suggest inefficiencies in asset utilization or declining productivity.

On the other hand, the total asset turnover ratio has been relatively stable, fluctuating between 1.18 and 1.26 during the same period. This suggests that Leidos Holdings Inc has been able to efficiently generate revenue from its total assets without significant fluctuations.

Overall, the declining trend in fixed asset turnover raises a concern about the company's efficiency in utilizing its fixed assets to generate revenue. Further analysis is recommended to understand the underlying reasons for this trend and to identify potential strategies for improvement in asset utilization.