LeMaitre Vascular Inc (LMAT)

Short-term

Turnover ratios

The analysis of LeMaitre Vascular Inc's activity ratios reveals important insights into the company's operational efficiency:

1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company manages its inventory. LeMaitre Vascular Inc's inventory turnover has improved gradually over the years, from 0.99 in 2020 to 1.06 in 2024. This suggests that the company is selling its inventory more quickly, which can lead to lower holding costs and potentially higher profitability.

2. Receivables Turnover:
- The data shows that receivables turnover information is not available for any of the years. Typically, this ratio measures how efficient the company is in collecting its receivables from customers. The absence of data on receivables turnover makes it difficult to assess the company's effectiveness in managing its accounts receivable.

3. Payables Turnover:
- Similar to receivables turnover, payables turnover data is also not provided for any of the years. The payables turnover ratio reflects how quickly the company pays its suppliers. Without this information, it is challenging to evaluate LeMaitre Vascular Inc's efficiency in managing its accounts payable.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how effectively the company generates sales revenue from its working capital. LeMaitre Vascular Inc's working capital turnover has shown a decreasing trend from 1.87 in 2020 to 0.59 in 2024. A declining ratio may suggest that the company's working capital is not being utilized efficiently to generate sales, potentially indicating inefficiencies in operations or capital management.

In conclusion, while LeMaitre Vascular Inc has shown improvement in its inventory turnover ratio, the lack of available data for receivables and payables turnover limits a comprehensive assessment of the company's overall activity ratios and operational performance. The decreasing trend in working capital turnover raises concerns about the company's ability to efficiently utilize its working capital to drive sales.

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Average number of days

LeMaitre Vascular Inc's activity ratios provide insights into how efficiently the company manages its operations and resources.

1. Days of Inventory on Hand (DOH):
- The company's DOH has shown some fluctuation over the years, ranging from 287.52 days to 367.99 days. A lower number of days indicates that the company is selling inventory more quickly, which may suggest efficient inventory management. However, the increase in DOH to 367.99 days in 2020 raises concerns about potential overstocking or slow-moving inventory. Subsequent improvements in DOH in 2022 and 2023 suggest better inventory turnover. The rise in DOH to 343.64 days in 2024 may require further investigation to analyze the reasons behind this increase.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO for any of the years, indicating that this metric is not available for analysis. DSO typically measures how quickly the company collects its receivables, and a lower number of days is generally favorable as it implies faster cash conversion.

3. Number of Days of Payables:
- Similar to DSO, the data does not include information on the number of days of payables, making it challenging to assess how long the company takes to pay its suppliers. However, a longer payment period can sometimes indicate favorable terms with suppliers, while excessively long payment periods may strain supplier relationships.

Overall, LeMaitre Vascular Inc's activity ratios suggest improvements in inventory turnover over the years, but further analysis of DSO and payables turnover would provide a more comprehensive view of the company's efficiency in managing working capital and operational activities.

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Long-term

The fixed asset turnover ratio measures how effectively a company is generating revenue from its investment in fixed assets. In the case of LeMaitre Vascular Inc, the fixed asset turnover has fluctuated over the years, with a significant increase from 2020 to 2022 (8.60 to 9.03) before data gaps in 2023 and 2024. This indicates that the company improved its ability to generate sales from its fixed assets during this period.

On the other hand, the total asset turnover ratio assesses the company's ability to generate sales from all its assets. LeMaitre Vascular Inc had a relatively stable total asset turnover ratio from 2020 to 2022, with values around 0.50. There was a slight increase in 2023 to 0.56, followed by a drop to 0.40 in 2024. This suggests that the company's overall efficiency in utilizing its total assets to generate revenue improved in 2023 but then declined in 2024.

Overall, the trend in the fixed asset turnover ratio indicates an improvement in the company's efficiency in utilizing its fixed assets to generate revenue, while the total asset turnover ratio shows some fluctuations in the company's ability to generate sales from all its assets. Analyzing these long-term activity ratios can provide insights into how effectively LeMaitre Vascular Inc is managing its assets to drive revenue growth.