Leidos Holdings Inc (LDOS)

Activity ratios

Short-term

Turnover ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 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 6.36 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 6.08 5.71 5.43
Payables turnover 17.93 — — — 16.80 — — — 16.94 — — — 14.45 — — — 16.12 — — —
Working capital turnover 15.21 15.94 20.59 28.97 — — — — 35.22 60.80 85.53 37.75 28.47 — — — 23.16 27.17 15.76 19.13

Leidos Holdings Inc has shown consistent and impressive inventory turnover ratios over the past few quarters, ranging from 35.36 to 45.15. This indicates that the company is efficiently managing its inventory, selling goods quickly, and replenishing stock effectively.

The receivables turnover ratio has also remained relatively stable, varying between 5.75 and 6.48. This suggests that Leidos is efficient in collecting payments from its customers and converting accounts receivable into cash within a reasonable timeframe.

The payables turnover ratio has been reported intermittently, with figures of 14.45, 16.12, and 17.93 in the available periods. This indicates that the company is managing its payments to suppliers efficiently and effectively.

The working capital turnover has shown fluctuation but generally increasing trend, with figures ranging from 15.21 to 85.53. This suggests that Leidos is efficiently utilizing its working capital to generate revenue, with higher values indicating better utilization of resources for revenue generation.

Overall, Leidos Holdings Inc demonstrates strong activity ratios, indicating effective management of inventory, receivables, payables, and working capital to drive operational efficiency and financial performance.

Average number of days

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 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 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 60.06 63.87 67.16
Number of days of payables days 20.36 — — — 21.73 — — — 21.55 — — — 25.27 — — — 22.64 — — —

Leidos Holdings Inc's activity ratios indicate the efficiency of the company's management of its operating cycle. The Days of Inventory on Hand (DOH) has been relatively stable over the periods analyzed, ranging between 8 and 10 days. This suggests that the company is effectively managing its inventory levels, neither overstocking nor running out of inventory too quickly.

In terms of Days of Sales Outstanding (DSO), there has been some fluctuation over time, with the figure peaking at around 63 days and decreasing to approximately 57 days more recently. A lower DSO indicates that the company is collecting its accounts receivable faster, which is a positive sign for cash flow management.

The Number of Days of Payables has also shown variation, with figures ranging between 20 and 25 days. A lower number of days of payables suggests that the company is paying its suppliers more quickly, potentially maintaining good relationships with them. However, the lack of data for some periods makes it challenging to draw definitive conclusions about the trend in this ratio.

Overall, by monitoring these activity ratios, investors and analysts can gain insights into Leidos Holdings Inc's operational efficiency and effectiveness in managing its working capital.

Long-term

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 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 47.31 48.74 46.79
Total asset turnover 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 1.15 1.13 1.10

Leidos Holdings Inc's fixed asset turnover ratio has shown a general decreasing trend over the periods observed, indicating that the company is generating fewer revenues relative to its fixed assets. This could be a result of slower growth in sales compared to the growth in fixed assets or inefficient utilization of fixed assets. However, the ratio has been relatively high, indicating efficient utilization of fixed assets overall.

On the other hand, the total asset turnover ratio has also been declining, albeit more gradually, which suggests that Leidos Holdings Inc is generating fewer revenues relative to its total assets. This could be due to an increase in the company's total asset base without a proportional increase in revenue generation. The company may need to focus on optimizing its asset utilization to improve this ratio.

Overall, both ratios indicate potential inefficiencies in Leidos Holdings Inc's asset utilization, particularly in generating revenues from its assets. The company may benefit from a closer examination of its operational efficiency and investment decisions to improve its long-term activity ratios.