Mercury Systems Inc (MRCY)

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 1.91 1.89 1.85 1.76 1.95 1.87 1.99 2.11 2.19 2.20 2.26 2.38 2.43 2.25 2.17 2.22 2.47 2.57 2.62 2.59
Receivables turnover 7.50 9.15 10.82 10.14 7.81 8.05 6.86 6.03 6.84 — 7.54 — 7.17 — — — — — — —
Payables turnover 7.89 8.13 7.44 6.66 6.32 5.77 7.13 5.68 6.01 6.32 9.58 7.60 11.24 9.03 9.86 7.27 10.50 8.31 11.18 11.02
Working capital turnover 1.16 1.13 1.18 1.24 1.38 1.41 1.44 1.42 1.59 1.66 1.75 1.91 1.88 1.92 1.94 1.56 1.57 1.12 1.65 1.68

Mercury Systems Inc's activity ratios provide insights into its operational efficiency and effectiveness in managing its assets and liabilities.

1. Inventory Turnover: This ratio demonstrates how many times the company's inventory is sold and replaced during a specific period. Mercury Systems Inc's inventory turnover has fluctuated slightly over the past few quarters but generally remained within the range of 1.76 to 2.62. A higher turnover indicates that the inventory is being managed efficiently.

2. Receivables Turnover: This ratio reflects the speed at which the company collects cash from its credit sales. Mercury Systems Inc's receivables turnover has varied significantly, ranging from 6.03 to 10.82. Higher turnover ratios suggest effective credit management and timely collection, which is beneficial for cash flow.

3. Payables Turnover: This ratio measures how quickly the company pays its suppliers. Mercury Systems Inc's payables turnover has shown some fluctuations but generally remained within the range of 5.68 to 11.24. A higher turnover implies that the company is managing its payables efficiently and possibly taking advantage of vendor credit terms.

4. Working Capital Turnover: This ratio evaluates how efficiently the company utilizes its working capital to generate revenue. Mercury Systems Inc's working capital turnover has ranged from 1.12 to 1.94, with some variability. A higher ratio indicates better utilization of working capital to support sales and operational activities.

Overall, a thorough analysis of Mercury Systems Inc's activity ratios suggests that the company has been managing its assets and liabilities effectively, with room for improvement in certain areas to enhance operational efficiency and financial performance.

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 191.41 192.65 197.25 207.58 187.30 195.05 183.19 173.18 166.33 165.91 161.17 153.35 150.14 161.87 167.84 164.07 147.81 141.97 139.42 140.78
Days of sales outstanding (DSO) days 48.70 39.89 33.74 36.00 46.75 45.36 53.24 60.50 53.37 — 48.38 — 50.88 — — — — — — —
Number of days of payables days 46.28 44.88 49.04 54.81 57.76 63.30 51.22 64.22 60.71 57.73 38.09 48.01 32.48 40.42 37.02 50.21 34.76 43.93 32.66 33.12

The Days of Inventory on Hand (DOH) for Mercury Systems Inc have shown a fluctuating trend over the past few quarters, ranging from 139.42 days to 207.58 days. This indicates that the company has at times held inventory for an extended period before it is converted into sales. Overall, the trend suggests potential issues with inventory management efficiency that may require closer monitoring and adjustment.

The Days of Sales Outstanding (DSO) have also varied over time, with values ranging from 33.74 days to 60.50 days. A decreasing DSO indicates that the company is collecting its accounts receivable faster, which is a positive sign of efficient cash flow management. However, the variability in this ratio may imply potential challenges in credit management or customer payment terms.

In contrast, the Number of Days of Payables for Mercury Systems Inc has shown a fluctuating trend as well, ranging from 32.48 days to 64.22 days. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, potentially indicating cash flow constraints or strategic use of trade credit. However, the variability in this ratio could also imply changes in purchasing practices or supplier relationships.

Overall, the analysis of Mercury Systems Inc's activity ratios highlights the importance of closely monitoring inventory management, accounts receivable collection, and payables policies to ensure optimal operational efficiency and cash flow management.

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 7.57 7.37 7.83 7.91 8.15 8.46 8.20 7.87 7.77 7.55 7.48 7.33 7.19 6.94 6.71 8.71 9.08 9.61 9.94 10.43
Total asset turnover 0.35 0.35 0.37 0.39 0.41 0.42 0.43 0.42 0.43 0.42 0.43 0.48 0.47 0.47 0.43 0.50 0.49 0.43 0.48 0.47

Mercury Systems Inc's long-term activity ratios indicate the efficiency with which the company utilizes its assets. The fixed asset turnover ratio has remained relatively stable over the period, ranging from 6.71 to 8.46, with a high of 10.43 in December 2019. This suggests that the company generates a significant level of sales from its fixed assets.

On the other hand, the total asset turnover ratio fluctuates more, ranging from 0.35 to 0.50. The ratio hit its peak in September 2020 and has since shown some variability. This indicates that the company's ability to generate sales from all its assets has varied over the period.

Overall, while the fixed asset turnover ratio reflects consistent efficiency in generating sales from fixed assets, the total asset turnover ratio demonstrates some volatility, which may require further investigation into the company's asset management strategies.