N-Able Inc (NABL)

Short-term

Turnover ratios

N-Able Inc's activity ratios provide insight into the efficiency of its operations and management of key resources.

1. Receivables Turnover: This ratio indicates how many times a company collects its accounts receivable during a specific period. N-Able Inc's receivables turnover has been relatively consistent over the past eight quarters, ranging from 7.09 to 8.82. This suggests that the company is efficiently managing its accounts receivable, collecting outstanding payments in a timely manner.

2. Payables Turnover: The payables turnover ratio reflects how efficiently a company pays its suppliers. N-Able Inc's payables turnover has varied significantly, ranging from 48.56 to 98.55 over the past eight quarters. A higher turnover ratio indicates that the company is paying its suppliers more frequently, which could result in better relationships and potential discounts.

3. Working Capital Turnover: This ratio measures how efficiently a company utilizes its working capital to generate sales. N-Able Inc's working capital turnover has also shown variability, decreasing from 5.02 to 2.96 over the past eight quarters. A higher turnover ratio generally indicates better efficiency in utilizing working capital to drive sales.

Overall, N-Able Inc's activity ratios suggest a mixed performance in terms of managing its resources and operations. It is important for the company to continue monitoring these ratios to ensure optimal efficiency and effectiveness in its business activities.

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Average number of days

Days of inventory on hand (DOH) is not provided in the table.

Days of sales outstanding (DSO) shows the number of days it takes for N-Able Inc to collect payment from its customers. The trend indicates an increase in DSO from 41.59 days in December 2022 to 51.46 days in June 2023, before slightly declining to 47.43 days in March 2023. This may suggest a slower collection of receivables, which could impact the company's cash flow and liquidity.

Number of days of payables highlights the time N-Able Inc takes to pay its suppliers. It shows a fluctuating trend, with the number of days of payables ranging from 3.70 days in September 2022 to 7.52 days in June 2023. A higher number of days of payables can indicate that the company is taking longer to settle its obligations, which could signal potential liquidity challenges or strained relationships with suppliers.

Overall, the activity ratios for N-Able Inc suggest potential areas of concern regarding the management of working capital and cash flow. The increasing DSO and fluctuating days of payables could be indicators of inefficiencies in the company's operations that require further evaluation and monitoring.

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Long-term

N-Able Inc's long-term activity ratios provide insight into the efficiency of the company in utilizing its fixed and total assets.

The fixed asset turnover ratio has shown a positive trend, consistently increasing from 9.44 in March 2022 to 11.49 in December 2023. This indicates that N-Able Inc has been successful in generating revenue from its fixed assets, such as property, plant, and equipment, at an improving rate over the period. A higher fixed asset turnover ratio suggests that the company is effectively using its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has remained relatively stable around the 0.35 level throughout the period. This ratio measures the company's ability to generate sales from all its assets, including fixed and current assets. A consistent total asset turnover ratio indicates that N-Able Inc has maintained an efficient overall asset utilization, albeit at a steady pace.

In conclusion, N-Able Inc's fixed asset turnover ratio has shown a positive trend, indicating improved efficiency in utilizing its fixed assets to generate revenue. Meanwhile, the stable total asset turnover ratio reflects the company's ability to maintain a consistent level of overall asset utilization efficiency.