Lumentum Holdings Inc (LITE)
Activity ratios
Short-term
Turnover ratios
| Jun 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 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.18 | 3.87 | 3.31 | 3.78 | 4.20 | 4.03 | 4.33 | 3.91 | 5.11 | 5.61 | 5.99 | 6.03 | 6.48 | 4.90 | 5.15 | 5.13 | 5.91 | 7.87 | 7.62 | 6.24 |
| Receivables turnover | 468.55 | 278.20 | 195.58 | 193.52 | 259.66 | — | 334.75 | — | 421.92 | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 10.03 | 12.21 | 9.58 | 12.03 | 10.14 | 8.33 | 7.73 | 6.95 | 8.15 | 9.92 | 10.55 | 12.30 | 10.89 | 9.87 | 9.58 | 7.47 | 7.40 | 9.40 | 9.52 | 8.29 |
| Working capital turnover | 2.06 | 1.04 | 1.00 | 0.74 | 0.81 | 1.05 | 1.06 | 1.04 | 0.68 | 0.66 | 0.87 | 0.93 | 0.95 | 0.87 | 1.01 | 0.86 | 0.92 | 1.00 | 1.09 | 1.49 |
Lumentum Holdings Inc's inventory turnover ratio has displayed some variability over the recent periods, ranging from 3.18 to 7.87. A general declining trend is observed from the first quarter of 2020 to the second quarter of 2024, indicating a decrease in the efficiency of converting inventory into sales. This may imply potential issues related to inventory management or changing demand patterns for the company's products.
On the other hand, the receivables turnover ratio has shown significant fluctuations, with a peak of 468.55 in the first quarter of 2024, implying a rapid collection of receivables, which is a positive sign for the company's liquidity. However, the ratio drops to lower levels in subsequent quarters, indicating potential challenges in managing accounts receivable effectively.
The payables turnover ratio has also exhibited variability over the analyzed periods, ranging from 6.95 to 12.30. A higher ratio suggests that the company is taking longer to pay its suppliers, which can sometimes indicate strained relationships or potential liquidity concerns from the suppliers' perspective.
Lastly, the working capital turnover ratio has fluctuated between 0.66 and 2.06. A decreasing trend is observed from the first quarter of 2022 to the second quarter of 2024, which indicates a decline in the efficiency of generating sales from working capital. This may imply challenges in effectively utilizing the company's working capital to support its operations and sales growth.
Overall, the activity ratios of Lumentum Holdings Inc suggest a mix of strengths and potential areas of concern in terms of inventory management, receivables and payables turnover, and working capital efficiency over the analyzed periods.
Average number of days
| Jun 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 114.77 | 94.28 | 110.21 | 96.49 | 86.81 | 90.49 | 84.31 | 93.46 | 71.48 | 65.01 | 60.90 | 60.48 | 56.30 | 74.43 | 70.86 | 71.20 | 61.76 | 46.37 | 47.93 | 58.49 |
| Days of sales outstanding (DSO) | days | 0.78 | 1.31 | 1.87 | 1.89 | 1.41 | — | 1.09 | — | 0.87 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 36.38 | 29.89 | 38.08 | 30.34 | 35.99 | 43.83 | 47.24 | 52.50 | 44.79 | 36.80 | 34.59 | 29.69 | 33.51 | 36.99 | 38.08 | 48.89 | 49.30 | 38.82 | 38.35 | 44.03 |
Lumentum Holdings Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, and payables.
Days of Inventory on Hand (DOH) has shown fluctuations over the periods provided, indicating changes in inventory management. The company's inventory turnover cycle has varied from a low of 46.37 days to a high of 114.77 days. A decreasing trend in DOH suggests faster inventory turnover, which can free up working capital and reduce carrying costs.
Days of Sales Outstanding (DSO) represents how long it takes the company to collect its accounts receivable. Lumentum's DSO data is limited, but the available values show a range from 0.78 days to 1.89 days. A decreasing DSO typically indicates a more efficient collection process, improving the company's cash flow.
Number of Days of Payables reveals the average payment period the company takes to settle its accounts payable. Lumentum's payables period has fluctuated between 29.69 days to 52.50 days. An increasing trend in payables days could indicate that the company is taking longer to pay its suppliers, potentially improving cash flow and working capital management.
Overall, analyzing these activity ratios can help assess Lumentum's effectiveness in managing its working capital, inventory, and customer payments, providing valuable insights into its operational efficiency and financial health.
Long-term
| Jun 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 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 4.75 | 2.40 | 2.42 | 3.03 | 3.55 | 3.67 | 3.64 | 3.57 | 4.56 | 4.54 | 4.57 | 4.75 | 4.65 | 4.38 | 4.25 | 3.45 | 4.25 | 3.40 | 3.39 | 3.77 |
| Total asset turnover | 0.69 | 0.33 | 0.30 | 0.34 | 0.38 | 0.41 | 0.40 | 0.39 | 0.40 | 0.39 | 0.45 | 0.48 | 0.47 | 0.44 | 0.47 | 0.48 | 0.49 | 0.51 | 0.53 | 0.57 |
The fixed asset turnover ratio for Lumentum Holdings Inc has shown variability over the periods analyzed, ranging from a low of 2.40 to a high of 4.75. This ratio indicates the efficiency of the company in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio suggests that the company is effectively utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio also displayed fluctuation over the same periods, with values ranging from 0.30 to 0.69. This ratio reflects the company's ability to generate sales in relation to its total assets. A higher total asset turnover ratio indicates that the company is efficiently utilizing its assets to generate revenue.
Analyzing both ratios together provides a comprehensive view of Lumentum Holdings Inc's long-term activity performance. The increasing trend in fixed asset turnover indicates improved efficiency in utilizing fixed assets to generate sales, while the fluctuation in total asset turnover suggests variability in the overall efficiency of generating sales with respect to total assets.
Overall, a thorough analysis of both ratios reveals insights into how effectively Lumentum Holdings Inc is managing its long-term assets to drive revenue generation.