Myriad Genetics Inc (MYGN)

Short-term

Turnover ratios

Myriad Genetics Inc's activity ratios, including inventory turnover, receivables turnover, payables turnover, and working capital turnover, provide a snapshot of the company's efficiency in managing its resources and operations.

1. Inventory turnover: Myriad Genetics Inc's inventory turnover has remained relatively stable over the past few quarters, ranging from around 24 to 40. A higher inventory turnover ratio indicates that the company is effectively selling its inventory and replenishing it quickly. Myriad Genetics Inc's consistent and high inventory turnover suggests efficient management of inventory levels.

2. Receivables turnover: The receivables turnover ratio for Myriad Genetics Inc has varied between 5.81 and 9.27 over the analyzed period. A higher receivables turnover ratio indicates that the company is collecting its receivables quickly. Myriad Genetics Inc's receivables turnover has shown some fluctuations but generally reflects a reasonable rate of collection efficiency.

3. Payables turnover: Myriad Genetics Inc's payables turnover has fluctuated between 16.99 and 42.43. A higher payables turnover ratio suggests that the company is paying its suppliers quickly. The fluctuations in Myriad Genetics Inc's payables turnover may indicate changes in payment terms or supplier relationships.

4. Working capital turnover: Myriad Genetics Inc's working capital turnover has shown variability, ranging from 2.20 to 13.04. A higher working capital turnover ratio signifies that the company is efficiently utilizing its working capital to generate sales. The fluctuations in Myriad Genetics Inc's working capital turnover may suggest changes in the company's operating cycle or capital management practices.

Overall, the analysis of Myriad Genetics Inc's activity ratios indicates that the company generally maintains efficient management of its inventory, receivables, payables, and working capital, which is essential for sustaining operations and generating revenue.

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Average number of days

Days of Inventory on Hand (DOH) measures how many days it takes for a company to sell its inventory. Myriad Genetics Inc's DOH has generally shown a decreasing trend from 2019 to 2024, indicating more efficient inventory management. The company held inventory for about 14.60 days as of Sep 30, 2024, down from 16.66 days on Sep 30, 2019.

Days of Sales Outstanding (DSO) reflects the average number of days it takes for a company to collect its accounts receivable. Myriad Genetics Inc's DSO has fluctuated over the years, with some periods of increases and decreases. As of Sep 30, 2024, the company took about 56.14 days to collect its receivables, compared to 54.05 days on Sep 30, 2019.

Number of Days of Payables indicates the average number of days it takes a company to pay its suppliers. Myriad Genetics Inc's payables period has also varied, but generally, it has been stable or slightly increasing. As of Sep 30, 2024, the company took about 16.50 days to pay its suppliers, up from 14.23 days on Sep 30, 2019.

Overall, Myriad Genetics Inc has shown improvements in its inventory management efficiency over the years, while the collection of receivables and payment to suppliers have fluctuated but remained relatively stable. The company's ability to manage its working capital cycle efficiently reflects positively on its operational effectiveness and financial health.

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Long-term

Myriad Genetics Inc's long-term activity ratios indicate the efficiency of the company in managing its assets.

1. Fixed asset turnover: This ratio measures how effectively the company is utilizing its fixed assets to generate sales. Myriad Genetics Inc's fixed asset turnover has ranged from 6.06 to 21.96 over the past five years. The gradual increase in this ratio from 2019 to 2022 suggests that the company has been utilizing its fixed assets more efficiently. However, there was a slight decline in 2023 and 2024, which may indicate a decrease in the productivity of fixed assets or increased investment in fixed assets during those periods. Overall, the company has maintained a relatively high fixed asset turnover ratio, indicating efficient utilization of fixed assets to generate revenue.

2. Total asset turnover: This ratio reflects the company's ability to generate sales from all its assets. Myriad Genetics Inc's total asset turnover has fluctuated between 0.41 and 0.76 over the past five years. The upward trend in this ratio from 2019 to 2022 indicates an improvement in the company's overall asset efficiency and their ability to generate sales from total assets. However, there has been some variability in the ratio in recent periods, suggesting potential changes in the composition of assets or sales volume relative to total assets.

In conclusion, Myriad Genetics Inc has shown efficiency in utilizing its fixed assets to generate revenue, as evidenced by the increasing trend in fixed asset turnover. The fluctuation in total asset turnover may indicate changes in the company's asset composition or sales volume relative to total assets. Overall, the company's long-term activity ratios suggest a reasonable level of efficiency in managing and utilizing its assets to drive sales.