Lantheus Holdings Inc (LNTH)

Short-term

Turnover ratios

Activity ratios measure how efficiently a company manages its assets and liabilities to generate sales and cash flow. Let's analyze the activity ratios of Lantheus Holdings Inc based on the provided data:

1. Inventory turnover:
The inventory turnover ratio indicates how many times a company sells and replaces its inventory in a given period. Lantheus Holdings Inc's inventory turnover has been consistently high over the past five years, ranging from 5.61 to 9.96 times. This suggests that the company efficiently manages its inventory levels and quickly sells its products, resulting in a shorter inventory holding period.

2. Receivables turnover:
The receivables turnover ratio measures how quickly a company collects its accounts receivable. Lantheus Holdings Inc's receivables turnover ratio has generally decreased from 7.98 in 2019 to 4.56 in 2023. This decline may indicate a slower collection of receivables, which could potentially impact the company's cash flow and liquidity.

3. Payables turnover:
The payables turnover ratio reflects how efficiently a company pays its suppliers. Lantheus Holdings Inc's payables turnover has shown fluctuations over the years but has generally remained above 9 times. A higher payables turnover ratio suggests that the company is paying its suppliers quickly, which can help maintain good relationships with vendors.

4. Working capital turnover:
The working capital turnover ratio measures how effectively a company utilizes its working capital to generate revenue. Lantheus Holdings Inc's working capital turnover has declined steadily from 3.27 in 2019 to 1.44 in 2023. A decreasing trend in this ratio may indicate that the company is becoming less efficient in using its working capital to support its operations and generate sales.

In summary, Lantheus Holdings Inc exhibits strong inventory turnover and payables turnover, indicating efficient inventory management and timely payment to suppliers. However, the decreasing trend in receivables turnover and working capital turnover warrants further attention to ensure optimal cash flow management and operational efficiency.

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Average number of days

Activity ratios measure how effectively a company manages its assets and liabilities to generate revenue. Looking at Lantheus Holdings Inc's activity ratios over the past five years:

1. Days of Inventory on Hand (DOH):
- The company's DOH has fluctuated over the years, ranging from a low of 36.64 days in 2022 to a high of 65.02 days in 2020.
- A decreasing trend in DOH indicates better efficiency in managing inventory, as the company is able to sell its products faster without keeping them in stock for a long time.
- Lantheus Holdings Inc's current DOH of 39.82 days in 2023 is slightly higher compared to the previous year but lower than the peaks seen in 2020 and 2019.

2. Days of Sales Outstanding (DSO):
- DSO measures how quickly the company collects on its accounts receivable. Lantheus Holdings Inc's DSO has varied between 45.74 days in 2019 to 83.30 days in 2022.
- A longer DSO indicates slower collections, potentially signaling credit issues or inefficiencies in the company's revenue collection process.
- The DSO has increased in 2023 to 80.04 days, which suggests that the company is taking longer to collect payments from customers compared to the prior year.

3. Number of Days of Payables:
- This ratio shows how long it takes for the company to pay its suppliers. Lantheus Holdings Inc has seen fluctuations in the number of days of payables, ranging from 21.24 days in 2022 to 39.37 days in 2019.
- A higher number of days of payables may indicate a more extended period for the company to pay its suppliers, potentially improving cash flow as it retains funds for a more extended period.
- The company's current number of days of payables is 25.62 days in 2023, showing a slight increase compared to the prior year, which may suggest a longer payment timeline for suppliers.

In conclusion, Lantheus Holdings Inc's activity ratios have shown fluctuations over the years, with potential implications for its inventory management, accounts receivable collection, and accounts payable policies. Monitoring these ratios can help assess the company's operational efficiency and cash flow management.

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Long-term

Lantheus Holdings Inc's fixed asset turnover has shown a consistently increasing trend over the last five years, indicating that the company has been able to generate more revenue from its fixed assets. This suggests that the company is utilizing its fixed assets efficiently to generate sales.

On the other hand, the total asset turnover of Lantheus Holdings Inc has varied significantly over the same period, with a noticeable decrease from 2019 to 2021 followed by a slight increase in 2022 and 2023. A total asset turnover below 1 typically indicates that the company is not generating a high level of sales compared to its total assets.

Overall, while the fixed asset turnover of Lantheus Holdings Inc reflects good efficiency in utilizing fixed assets to generate sales, the total asset turnover indicates that there may be room for improvement in generating sales relative to the total assets employed by the company. Further analysis and consideration of industry benchmarks would be required to fully assess the company's long-term activity ratios and performance.