Insight Enterprises Inc (NSIT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 56.58 | 40.66 | 33.17 | 24.35 | 37.92 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 12.05 | 9.58 | 10.09 | 8.96 | 8.79 |
Insight Enterprises Inc's activity ratios provide insights into the efficiency of its operational processes.
1. Inventory Turnover: Insight's inventory turnover ratio has fluctuated over the years, indicating variations in how quickly the company sells its inventory. In 2020, the ratio was 37.92, declining to 24.35 in 2021, but then increasing to 33.17 in 2022, 40.66 in 2023, and significantly improving to 56.58 in 2024. The increase in the inventory turnover ratio signifies that the company is managing its inventory more effectively, selling goods at a faster rate.
2. Receivables Turnover: The data provided does not show any values for the receivables turnover ratio, indicating that the information regarding how quickly the company collects its receivables is not available. This ratio is crucial for evaluating Insight's efficiency in collecting payments from customers.
3. Payables Turnover: Similarly, the data does not provide any values for the payables turnover ratio, which could have shed light on how quickly Insight pays its suppliers. A higher payables turnover ratio would suggest that the company takes longer to pay its suppliers, potentially signaling better cash flow management.
4. Working Capital Turnover: Insight's working capital turnover has shown a positive trend over the years, increasing from 8.79 in 2020 to 12.05 in 2024. This improvement indicates that the company is generating more revenue relative to its working capital, showcasing efficient utilization of its resources to drive sales.
In conclusion, while Insight Enterprises Inc has shown improvements in managing its inventory and working capital, the lack of data on receivables and payables turnover ratios limits a comprehensive assessment of the company's overall efficiency in managing its operating cycle.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 6.45 | 8.98 | 11.00 | 14.99 | 9.62 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Insight Enterprises Inc's activity ratios indicate the efficiency of the company in managing its operating cycle.
1. Days of Inventory on Hand (DOH):
- The trend in DOH shows a decrease from 9.62 days in 2020 to 6.45 days in 2024, implying that Insight Enterprises has efficiently reduced the time it takes to sell its inventory.
- A lower DOH suggests effective inventory management, potentially minimizing storage costs and accelerating cash conversion.
2. Days of Sales Outstanding (DSO):
- The data does not provide information on DSO, which measures the average number of days it takes for a company to collect revenue after a sale.
- Without DSO data, it is difficult to evaluate Insight Enterprises' efficiency in collecting accounts receivable.
3. Number of Days of Payables:
- The data does not provide information on the number of days of payables, which typically represents the average number of days it takes a company to pay its suppliers.
- Lack of information on payables hinders the assessment of Insight Enterprises' ability to manage its payables effectively.
Overall, Insight Enterprises Inc has demonstrated improved efficiency in managing its inventory over the years, but a lack of data on sales outstanding and payables restricts a comprehensive analysis of its overall activity ratios. Efficient management of all three components (inventory, receivables, payables) is crucial for optimizing the company's cash flow and working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 37.20 | 53.53 | 57.12 |
| Total asset turnover | 1.36 | 1.46 | 2.04 | 2.01 | 1.93 |
Insight Enterprises Inc's Fixed Asset Turnover ratio has shown a declining trend over the years, decreasing from 57.12 in 2020 to 37.20 in 2022, with no data available for 2023 and 2024. This indicates that the company may be less efficient in generating sales revenue from its fixed assets during this period.
In contrast, the Total Asset Turnover ratio for Insight Enterprises Inc has been relatively stable, increasing slightly from 1.93 in 2020 to 2.04 in 2022, before declining to 1.36 in 2024. This suggests that the company's overall asset utilization to generate sales has been relatively consistent, although a significant drop in 2024 may warrant further investigation.
Overall, the declining trend in Fixed Asset Turnover and the fluctuation in Total Asset Turnover ratios may suggest potential changes in the company's asset management efficiency and sales generation capabilities over the analyzed period.