Moderna Inc (MRNA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 37.46 | 7.19 | 2.34 | 4.23 | — |
| Receivables turnover | 6.64 | 11.88 | 5.69 | 0.57 | 4.92 |
| Payables turnover | 14.55 | 14.02 | 11.17 | 11.05 | 15.50 |
| Working capital turnover | 0.93 | 2.26 | 2.66 | 0.42 | 0.06 |
Inventory Turnover Ratio:
Moderna Inc's inventory turnover has been showing a positive trend over the years, indicating that the company is managing its inventory efficiently. The significant increase in the ratio from 2020 to 2023 reflects that Moderna is turning over its inventory almost 17.38 times in 2023 compared to just 0.17 times in 2020. This implies that the company is selling its products quickly, which is a positive sign for its operational efficiency.
Receivables Turnover Ratio:
The receivables turnover ratio for Moderna Inc has been fluctuating over the years, but it has generally remained at healthy levels. A high receivables turnover ratio indicates that the company is collecting its receivables quickly. The decrease from 2022 to 2023 may suggest that Moderna is taking longer to collect payments from its customers in 2023 compared to the previous year.
Payables Turnover Ratio:
Moderna's payables turnover ratio has also been fluctuating, but overall showing a positive trend. A higher payables turnover ratio indicates that the company is paying its suppliers more quickly. The increase in the ratio from 2020 to 2023 signifies that Moderna is managing its payables more efficiently in recent years.
Working Capital Turnover Ratio:
The working capital turnover ratio reflects how efficiently a company is using its working capital to generate sales. Moderna's working capital turnover has generally been improving over the years, indicating that the company is becoming more efficient in utilizing its working capital to generate revenue. The increase in the ratio from 2020 to 2023 is a positive sign, showing that Moderna is generating more revenue with its working capital investment.
In conclusion, Moderna Inc's activity ratios suggest that the company has been improving its operational efficiency in terms of managing inventory, receivables, payables, and working capital. These ratios provide insights into how effectively Moderna is managing its resources to drive revenue and support sustainable growth.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.74 | 50.73 | 155.93 | 86.29 | — |
| Days of sales outstanding (DSO) | days | 54.95 | 30.73 | 64.12 | 636.49 | 74.24 |
| Number of days of payables | days | 25.08 | 26.03 | 32.68 | 33.05 | 23.54 |
Activity ratios provide insight into how efficiently a company is managing its assets and operations. Looking at Moderna Inc's activity ratios:
1. Days of Inventory on Hand (DOH):
- In 2023, the company held inventory for an average of 21.00 days, indicating a significant improvement from previous years.
- The decrease in DOH suggests Moderna has become more efficient in managing its inventory levels, potentially leading to lower storage costs and better cash flow.
2. Days of Sales Outstanding (DSO):
- DSO in 2023 was 53.35 days, which is higher compared to 2022 but lower than 2021 and 2020.
- This suggests that Moderna is taking longer to collect on its sales, potentially indicating issues with accounts receivable management or customer payment terms.
3. Number of Days of Payables:
- The company took, on average, 40.44 days to pay its payables in 2023, which has increased compared to 2022.
- A higher number of days of payables may indicate that Moderna is taking longer to settle its obligations with suppliers, potentially affecting relationships or signaling cash flow challenges.
In conclusion, Moderna Inc has shown improvements in managing inventory levels, but there are concerns regarding accounts receivable collection and payable payment periods. Further analysis and monitoring of these activity ratios can provide valuable insights into the company's operational efficiency and financial health.
See also:
Moderna Inc Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 4.49 | 22.19 | 32.07 | 3.32 | 0.31 |
| Total asset turnover | 0.37 | 0.74 | 0.75 | 0.11 | 0.04 |
The fixed asset turnover ratio for Moderna Inc has exhibited variability over the past five years, ranging from 0.30 to 14.88. This ratio measures the company's efficiency in generating sales revenue from its investments in fixed assets. In 2021, Moderna achieved a high fixed asset turnover of 14.88, indicating that the company generated $14.88 in revenue for every $1 invested in fixed assets.
However, the total asset turnover ratio for Moderna has also fluctuated, but to a lesser extent compared to the fixed asset turnover. The ratio ranged from 0.04 to 0.75 over the same period. Total asset turnover reflects how effectively the company utilizes all its assets to generate sales. In 2021, Moderna's total asset turnover was 0.75, meaning that the company generated $0.75 in revenue for every $1 of total assets.
Overall, Moderna's fixed asset turnover has shown significant improvement and variability compared to its total asset turnover, which has been relatively more stable over the period under consideration. These ratios indicate the company's ability to efficiently utilize its assets to generate revenue and highlight improvements in operational efficiency over the years.