Lantheus Holdings Inc (LNTH)

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 16.14 17.40 17.97 21.24 17.51 17.46 17.10 16.08 14.08 12.34 12.18 11.10 9.57 8.58 8.84 10.07 9.88 5.94 5.39 5.38
Receivables turnover 4.49 4.58 4.33 4.19 4.34 4.03 3.52 3.10 4.68 5.95 6.68 5.63 6.10 6.66 6.94 7.56 7.64 8.43 7.55 7.70
Payables turnover 25.09 26.49 23.96 29.07 30.22 20.16 27.46 24.60 23.79 20.43 17.99 17.65 21.01 13.41 19.16 16.35 15.50 11.01 10.19 11.25
Working capital turnover 1.42 1.54 1.86 2.04 2.16 2.99 3.55 3.64 2.88 3.06 3.26 3.20 3.18 3.20 3.10 2.86 3.11 3.61 3.97 2.27

Activity ratios provide insights into how efficiently a company is managing its resources. Let's analyze the activity ratios of Lantheus Holdings Inc:

1. Inventory Turnover: The inventory turnover ratio shows how many times the company's inventory is sold and replaced over a period. Lantheus Holdings Inc's inventory turnover has been relatively stable, ranging from 7.76 to 11.80 over the past eight quarters. A higher turnover indicates efficient inventory management and suggests that Lantheus is effectively selling its inventory.

2. Receivables Turnover: This ratio indicates how quickly the company collects payments from its customers. Lantheus' receivables turnover has also been fairly consistent, ranging from 3.14 to 4.65. A higher turnover suggests effective credit policies and prompt collections, which can improve cash flow and reduce bad debts.

3. Payables Turnover: The payables turnover ratio reflects how quickly the company is paying its suppliers. Lantheus' payables turnover has varied, with a range of 10.92 to 17.18. A higher turnover indicates that Lantheus is managing its payable obligations efficiently and taking advantage of trade credit terms.

4. Working Capital Turnover: This ratio measures how effectively working capital is being utilized to generate sales. Lantheus' working capital turnover has decreased steadily from 3.68 to 1.44 over the past eight quarters. A higher turnover is generally preferred as it indicates that the company is efficiently using its working capital to generate revenue.

Overall, Lantheus Holdings Inc appears to be managing its inventory, receivables, and payables efficiently based on the turnover ratios. However, the decreasing trend in working capital turnover may warrant further investigation to understand the impact on the company's 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 22.61 20.98 20.31 17.19 20.84 20.91 21.34 22.70 25.92 29.57 29.97 32.87 38.14 42.53 41.30 36.24 36.93 61.50 67.69 67.86
Days of sales outstanding (DSO) days 81.30 79.68 84.27 87.05 84.02 90.57 103.78 117.56 78.00 61.30 54.62 64.88 59.79 54.80 52.60 48.31 47.76 43.29 48.34 47.40
Number of days of payables days 14.55 13.78 15.23 12.56 12.08 18.11 13.29 14.84 15.34 17.87 20.29 20.68 17.37 27.21 19.05 22.32 23.55 33.15 35.81 32.45

Activity ratios provide insights into how efficiently a company manages its assets and liabilities. Let's analyze Lantheus Holdings Inc's activity ratios based on the provided data:

1. Days of Inventory on Hand (DOH):
- Lantheus Holdings Inc's DOH has been fluctuating over the past eight quarters, ranging from a low of 30.94 days in Q1 2023 to a high of 47.02 days in Q1 2022. A decreasing trend in DOH indicates that the company is selling inventory faster, which can be a positive sign. However, a sudden decrease may also suggest inventory shortages impacting sales.

2. Days of Sales Outstanding (DSO):
- The DSO for Lantheus Holdings Inc has varied over the quarters, with a range from 78.47 days in Q3 2023 to 116.11 days in Q1 2022. A decreasing DSO indicates that the company is collecting receivables more quickly, which is favorable. However, a high DSO may hint at potential issues with credit policies or customer payment delays.

3. Number of Days of Payables:
- Lantheus Holdings Inc's days of payables have shown fluctuations, with values ranging from 21.24 days in Q4 2022 to 33.43 days in Q3 2022. An increasing trend in payables days may suggest that the company is taking longer to pay its suppliers, potentially indicating strained relationships or cash flow challenges.

Overall, monitoring these activity ratios is crucial for assessing Lantheus Holdings Inc's operational efficiency and financial health. Analyzing trends and comparing these ratios with industry benchmarks can provide valuable insights into the company's management of inventory, receivables, and payables over time.

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 8.70 8.46 8.54 7.96 7.59 6.58 5.53 4.57 3.58 3.28 3.10 2.80 2.74 2.68 2.65 3.12 2.86 3.02 3.04 3.09
Total asset turnover 0.77 0.78 0.83 0.75 0.70 0.73 0.65 0.57 0.48 0.45 0.43 0.39 0.38 0.37 0.37 0.84 0.82 0.85 0.88 0.78

Lantheus Holdings Inc has demonstrated a consistent improvement in its Fixed Asset Turnover ratio over the past eight quarters, starting from 4.63 in Q1 2022 and reaching 8.84 in Q4 2023. This indicates that the company is generating more revenue relative to its investment in fixed assets, implying efficient utilization of these long-term assets to generate sales.

On the other hand, the Total Asset Turnover ratio has fluctuated within a relatively narrow range, with a slight increase from 0.58 in Q1 2022 to 0.79 in Q4 2023. This ratio represents the company's ability to generate sales relative to its total assets, including both fixed and current assets. The trend suggests that Lantheus Holdings Inc has managed to maintain a stable level of efficiency in utilizing its total assets to generate revenue.

Overall, the long-term activity ratios reflect a positive trend for Lantheus Holdings Inc, showcasing improvement in both fixed asset turnover and a stable total asset turnover over the quarters analyzed. This indicates effective management of the company's long-term assets to drive revenue growth and operational efficiency.