MaxLinear Inc (MXL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.08 | 2.93 | 3.01 | 2.72 | 4.74 |
| Receivables turnover | 4.06 | 6.55 | 7.45 | 7.10 | 6.29 |
| Payables turnover | 14.27 | 6.86 | 7.49 | 8.12 | 11.12 |
| Working capital turnover | 2.61 | 5.05 | 4.54 | 3.74 | 2.75 |
MaxLinear Inc's activity ratios provide insight into the efficiency of the company's operations. The inventory turnover indicates the number of times inventory is sold and replaced within a given period. Over the past five years, the inventory turnover has ranged from 2.72 to 4.74, with a slight fluctuation. This suggests that the company has been effectively managing its inventory levels.
The receivables turnover ratio measures how quickly the company collects payments from its customers. MaxLinear Inc's receivables turnover has varied notably, from 4.06 to 7.45, indicating fluctuations in the efficiency of its accounts receivable management.
The payables turnover ratio measures how quickly the company pays its suppliers. MaxLinear Inc's payables turnover has also demonstrated variability, ranging from 6.86 to 14.27 over the past five years. This indicates changes in the company's payment management practices.
The working capital turnover ratio reflects the efficiency of the company in utilizing its working capital to generate sales. MaxLinear Inc's working capital turnover has shown fluctuation, ranging from 2.61 to 5.05, indicating changes in how efficiently the company converts its working capital into sales.
Overall, the activity ratios indicate varying levels of efficiency in managing inventory, receivables, payables, and working capital over the past five years, suggesting fluctuations in the company's operational performance.
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 | 118.55 | 124.55 | 121.22 | 134.35 | 76.93 |
| Days of sales outstanding (DSO) | days | 89.83 | 55.71 | 48.97 | 51.43 | 58.01 |
| Number of days of payables | days | 25.57 | 53.20 | 48.76 | 44.97 | 32.82 |
To analyze MaxLinear Inc's activity ratios, we can examine the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and the Number of Days of Payables for the years 2019 through 2023.
Days of Inventory on Hand (DOH) shows the average number of days the company holds inventory before it is sold. The trend for MaxLinear Inc over the past five years indicates an increase in the DOH, from 76.93 days in 2019 to 118.55 days in 2023. This suggests a longer inventory turnover period, which could tie up working capital and potentially indicate inefficiencies in managing inventory.
Days of Sales Outstanding (DSO) reflects the average number of days it takes the company to collect revenue after a sale is made. MaxLinear Inc's DSO has shown variability over the years, with a peak of 89.83 days in 2023, compared to 48.97 days in 2021. This indicates that the company may be taking longer to collect receivables, potentially impacting cash flow and liquidity.
The Number of Days of Payables reveals the average number of days the company takes to pay its suppliers. MaxLinear Inc's payables period has fluctuated, with a significant decrease from 53.20 days in 2022 to 25.57 days in 2023. This suggests that the company may be managing its payables more efficiently and potentially taking advantage of extended payment terms.
Overall, the trend in these activity ratios for MaxLinear Inc suggests that the company may be experiencing challenges in managing its inventory and collecting receivables efficiently, while showing improvement in managing payables. It is essential for the company to carefully monitor and manage these activity ratios to optimize working capital and enhance overall financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 10.44 | 14.18 | 14.65 | 12.13 | 19.09 |
| Total asset turnover | 0.64 | 0.95 | 0.85 | 0.47 | 0.45 |
The long-term activity ratios of MaxLinear Inc, as indicated by the fixed asset turnover and total asset turnover, demonstrate the company's ability to generate revenue from its investment in fixed and total assets.
The fixed asset turnover ratio has shown a declining trend from 2019 to 2023, indicating a decrease in the efficiency of utilizing fixed assets to generate sales. However, the ratio remains relatively high, suggesting that the company is still able to generate significant sales from its investment in fixed assets.
On the other hand, the total asset turnover ratio has fluctuated over the years, with an increase from 2019 to 2022 followed by a decrease in 2023. Despite the fluctuations, the total asset turnover ratio indicates that the company's efficiency in utilizing its total assets to generate sales has been relatively low compared to its peers.
Overall, the analysis of the long-term activity ratios suggests that MaxLinear Inc should focus on improving its efficiency in generating sales from both fixed and total assets, possibly through more effective asset management and utilization to enhance long-term profitability and return on investment.