Liquidity Services Inc (LQDT)

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 15.61 20.13 17.53 13.75 12.15 16.68 13.24 14.45 13.86 14.08 12.13 12.03 16.08 28.98 22.78 20.84 25.93 21.75 5.02 2.08
Receivables turnover 40.96 40.45 49.82 50.33 35.92 23.78 33.88 41.71 34.50 44.01 44.55 38.69 44.37 38.87 40.66 36.69 37.53 33.97 38.61 34.81
Payables turnover 6.97 5.72 4.93 4.90 6.30 4.64 4.03 4.61 5.74 4.32 4.21 4.28 6.32 7.40 5.82 9.23 15.50 8.44 3.36 2.44
Working capital turnover 10.28 12.43 21.20 45.94 34.91 46.03 11.39 8.26 13.45 9.03 10.21 14.28 20.86 16.83 10.79 9.51 7.24

Liquidity Services Inc's activity ratios reflect how efficiently the company manages its operational processes.

1. Inventory Turnover: The company's inventory turnover has been fluctuating over the quarters, ranging from 7.54 to 12.80. The recent Q1 2024 ratio of 9.82 indicates that the company is turning over its inventory approximately 9.82 times during the quarter. A higher ratio suggests efficient inventory management.

2. Receivables Turnover: Liquidity Services Inc's receivables turnover has been fairly consistent, with the latest ratio in Q1 2024 at 40.48. This indicates that the company is collecting its receivables approximately 40.48 times during the quarter. A higher ratio demonstrates effective credit and collection management.

3. Payables Turnover: The payables turnover ratio has been relatively stable, with the latest figure at 4.39 in Q1 2024. This implies that the company is paying its suppliers approximately 4.39 times during the quarter. A higher ratio typically signifies that the company is managing its payables efficiently.

4. Working Capital Turnover: The working capital turnover ratio is not available for Q2 2022. However, looking at the previous quarters, the ratio has been notably high, indicating that Liquidity Services Inc efficiently utilizes its working capital to generate revenue. The significant fluctuations in this ratio highlight the company's changing working capital management strategies over time.

Overall, by analyzing these activity ratios, it is evident that Liquidity Services Inc has been effectively managing its 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 23.39 18.13 20.83 26.54 30.03 21.88 27.57 25.26 26.33 25.93 30.10 30.34 22.70 12.60 16.02 17.52 14.08 16.78 72.68 175.45
Days of sales outstanding (DSO) days 8.91 9.02 7.33 7.25 10.16 15.35 10.77 8.75 10.58 8.29 8.19 9.43 8.23 9.39 8.98 9.95 9.73 10.74 9.45 10.49
Number of days of payables days 52.37 63.79 74.07 74.49 57.96 78.64 90.67 79.24 63.62 84.46 86.70 85.30 57.74 49.32 62.67 39.54 23.55 43.23 108.63 149.58

Liquidity Services Inc's activity ratios indicate how efficiently the company manages its inventory, collects receivables, and pays its creditors.

1. Days of Inventory on Hand (DOH):
DOH represents the average number of days inventory is held before being sold. Liquidity Services Inc's DOH has been fluctuating over the past quarters, ranging from 28.51 to 48.41 days. A lower number is generally favorable as it implies quicker turnover of inventory. The company seems to have improved its inventory management efficiency in Q4 2023 compared to Q2 2023 and Q1 2023.

2. Days of Sales Outstanding (DSO):
DSO reflects the average number of days it takes for the company to collect its accounts receivable. Liquidity Services Inc's DSO has varied between 7.28 to 15.37 days. A lower DSO is preferred as it indicates faster collection of receivables. The company showed good improvement in collecting receivables in Q3 2023 and Q4 2023 compared to prior quarters, which is a positive sign.

3. Number of Days of Payables:
This ratio indicates the average number of days the company takes to pay its trade payables. Liquidity Services Inc's days of payables range from 83.21 to 148.74 days, suggesting that the company takes a considerable amount of time to pay its obligations. It's worth noting that the number of days of payables has been inconsistent over the quarters, potentially impacting relationships with suppliers.

Overall, Liquidity Services Inc should continue to monitor and potentially improve its inventory turnover, accounts receivable collection, and payable management practices to enhance its operational efficiency and strengthen its financial health.


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 18.91 18.51 17.74 16.44 15.43 14.69 14.47 15.10 14.81 14.64 14.33 12.79 12.04 11.59 11.34 11.57 11.94 12.09 11.93 12.02
Total asset turnover 1.14 1.10 1.10 1.06 1.06 0.97 0.97 1.00 0.94 1.01 1.02 1.02 1.04 1.05 1.05 1.20 1.25 1.22 1.16 1.11

Liquidity Services Inc's long-term activity ratios reflect its efficiency in utilizing fixed assets and total assets to generate revenue over the given periods. The fixed asset turnover ratio has shown a consistent positive trend over the quarters, indicating that the company is efficiently utilizing its fixed assets to generate sales. The ratio has improved steadily from 14.46 in Q3 2022 to 18.69 in Q1 2024, suggesting that the company's fixed assets are being effectively managed to drive revenue growth.

On the other hand, the total asset turnover ratio has also shown a positive trend, albeit with slight fluctuations. The ratio has increased from 0.97 in Q3 2022 to 1.13 in Q1 2024, indicating that Liquidity Services Inc is generating more revenue per dollar of total assets. This improvement signifies the company's ability to efficiently utilize all its assets, including fixed and current assets, to generate sales.

Overall, the upward trends in both fixed asset turnover and total asset turnover ratios suggest that Liquidity Services Inc is effectively managing its assets and operations to drive revenue growth and enhance its overall operational efficiency.