N-Able Inc (NABL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Inventory turnover | — | — | — |
| Receivables turnover | 8.76 | 8.72 | 8.55 |
| Payables turnover | 52.53 | 74.31 | 45.14 |
| Working capital turnover | 2.94 | 4.02 | 5.73 |
N-Able Inc's activity ratios reveal important insights into its efficiency in managing inventory, receivables, payables, and working capital.
1. Inventory turnover: Unfortunately, there is no information regarding the inventory turnover ratio provided in the table for the years 2021, 2022, and 2023. This ratio would have indicated how effectively the company is managing its inventory levels.
2. Receivables turnover: The receivables turnover ratio remained relatively stable over the three years, ranging from 8.55 to 8.76. This suggests that N-Able Inc collects its accounts receivable efficiently, with a consistent ability to convert credit sales into cash.
3. Payables turnover: N-Able Inc's payables turnover ratio significantly varied from 45.14 in 2021 to 74.31 in 2022, before decreasing to 52.53 in 2023. A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which can have implications for cash flow management and supplier relationships.
4. Working capital turnover: The working capital turnover ratio declined from 5.73 in 2021 to 2.94 in 2023, indicating a decreasing efficiency in generating revenue with the company's working capital. A lower ratio may suggest that the company is becoming less effective in utilizing its working capital to support operations and sales.
Overall, while the receivables turnover ratio remained steady, the significant fluctuations in payables turnover and the downward trend in working capital turnover raise questions about N-Able Inc's operational efficiency and working capital management strategies over the three-year period. Further analysis and comparison with industry benchmarks would provide a clearer understanding of the company's performance in these areas.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — |
| Days of sales outstanding (DSO) | days | 41.69 | 41.88 | 42.71 |
| Number of days of payables | days | 6.95 | 4.91 | 8.09 |
The Days of Inventory on Hand (DOH) ratio for N-Able Inc is not provided in the table, which hinders a complete analysis of the company's inventory management efficiency over the three-year period.
For Days of Sales Outstanding (DSO), N-Able Inc has shown a slight improvement from 42.71 days in 2021 to 41.88 days in 2022, further reducing to 41.69 days by the end of 2023. This indicates that the company is getting more efficient in collecting its accounts receivable, which is a positive trend for its cash flow.
In terms of the Number of Days of Payables, there appears to be some fluctuation in N-Able Inc's payables management. The number of days of payables increased from 8.09 days in 2021 to 4.91 days in 2022 but then rose again to 6.95 days by the end of 2023. This suggests there may have been changes in the company's payment terms or its relationships with suppliers.
Overall, the information provided indicates that N-Able Inc has made progress in managing its accounts receivable efficiently but may need to focus on stabilizing its payables management to ensure a balanced working capital cycle and optimize its cash flows effectively.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Fixed asset turnover | 11.41 | 9.93 | 8.89 |
| Total asset turnover | 0.36 | 0.34 | 0.33 |
Based on the long-term activity ratios of N-Able Inc over the past three years, we can observe positive trends in both the fixed asset turnover and total asset turnover ratios. The fixed asset turnover ratio has shown a consistent increase from 8.89 in 2021 to 11.41 in 2023, indicating that the company is generating more revenue relative to its investment in fixed assets. This improvement suggests enhanced efficiency in utilizing fixed assets to generate sales.
Similarly, the total asset turnover ratio has also displayed an upward trend, rising from 0.33 in 2021 to 0.36 in 2023. This indicates that N-Able Inc is generating more sales revenue relative to its total assets, reflecting improved asset utilization efficiency over the years.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that N-Able Inc has been effectively managing its assets to drive sales growth and enhance operational efficiency in the long term. This trend is a positive indicator of the company's ability to generate revenue from its asset base and optimize its asset utilization for sustainable growth.