Insight Enterprises Inc (NSIT)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	47.63	49.26	37.65	36.62	37.90	27.55	26.66	24.99	27.85	32.89	39.07	32.10	43.62	51.27	38.08	33.73	39.32	31.67	37.82	36.29
Receivables turnover	2.56	3.06	2.64	3.26	3.16	3.43	2.87	3.26	3.18	3.31	2.83	3.23	3.08	3.66	3.09	3.31	3.05	3.09	3.06	4.06
Payables turnover	3.54	4.56	3.65	4.58	4.82	5.46	4.58	4.93	4.37	5.02	4.00	4.60	4.45	4.94	3.94	5.19	4.91	4.88	4.03	5.87
Working capital turnover	9.54	9.66	9.43	11.68	10.05	6.92	7.24	9.04	8.92	7.75	8.04	8.53	8.75	10.89	9.93	7.62	6.61	6.82	9.48	9.41

Insight Enterprises Inc.'s activity ratios provide insight into the efficiency of the company's operations.

- Inventory turnover: The company's inventory turnover has been relatively stable over the quarters, ranging from 31.84 to 42.28 times per year. This indicates that the company efficiently manages its inventory, with a high turnover rate suggesting effective sales and inventory management.

- Receivables turnover: The receivables turnover shows a fluctuating trend, ranging from 2.57 to 3.44 times per year. Overall, the company collects its receivables efficiently, with a higher turnover indicating a quicker collection of outstanding payments.

- Payables turnover: Insight Enterprises Inc. has a consistent payables turnover rate, ranging from 3.02 to 4.79 times per year. A higher turnover rate reflects the company's ability to efficiently manage its accounts payable by paying suppliers in a timely manner.

- Working capital turnover: The working capital turnover has also shown consistency, ranging from 6.94 to 11.73 times per year. This ratio highlights how effectively the company utilizes its working capital to generate revenue, with a higher turnover indicating better utilization of available funds.

In conclusion, Insight Enterprises Inc. demonstrates efficient management of its inventory, accounts receivable, accounts payable, and working capital, which collectively indicate a well-functioning operational structure.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	7.66	7.41	9.70	9.97	9.63	13.25	13.69	14.61	13.11	11.10	9.34	11.37	8.37	7.12	9.59	10.82	9.28	11.53	9.65	10.06
Days of sales outstanding (DSO)	days	142.46	119.10	138.29	111.98	115.33	106.40	127.09	112.06	114.68	110.21	129.08	112.94	118.48	99.68	118.02	110.31	119.73	118.28	119.18	89.91
Number of days of payables	days	103.25	80.11	99.90	79.63	75.77	66.90	79.64	73.99	83.57	72.74	91.14	79.42	81.95	73.86	92.62	70.35	74.40	74.86	90.66	62.23

Insight Enterprises Inc.'s activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH): Insight Enterprises Inc. has shown improvements in managing its inventory turnover over the quarters. The DOH has decreased from 11.00 days in Q4 2022 to 8.98 days in Q4 2023, indicating that the company is holding less inventory on average. This suggests effective inventory management and potentially lower holding costs, which could lead to increased profitability.

2. Days of Sales Outstanding (DSO): The DSO metric reflects the average number of days it takes for the company to collect payment after a sale is made. Insight Enterprises Inc. has shown fluctuations in DSO over the quarters, ranging from 106.00 days in Q3 2022 to 141.94 days in Q4 2023. A higher DSO may indicate slower collections, potentially impacting cash flow and liquidity. However, it's worth noting that in some cases, a higher DSO may be a result of offering favorable credit terms to clients.

3. Number of Days of Payables: Insight Enterprises Inc. has varied in its management of payables over the quarters, fluctuating from 76.24 days in Q3 2022 to 120.93 days in Q4 2023. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which may indicate improved cash flow management. However, excessively delaying payments could strain supplier relationships.

In conclusion, Insight Enterprises Inc. should continue monitoring and optimizing its activity ratios to ensure efficient operations and sustainable growth. It is important for the company to strike a balance between managing inventory levels, collecting receivables promptly, and maintaining healthy relationships with suppliers.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	43.52	45.81	47.99	50.07	50.87	51.94	51.95	51.95	53.30	59.98	57.42	56.22	56.84	65.08	64.95	63.36	58.83	42.13	94.86	94.52
Total asset turnover	1.45	1.85	1.75	2.03	2.03	2.09	1.85	2.03	2.00	2.06	1.85	1.96	1.93	2.17	1.91	2.01	1.84	1.80	2.13	2.54

Insight Enterprises Inc.'s long-term activity ratios exhibit certain trends over the past eight quarters. The fixed asset turnover, which measures the efficiency in utilizing fixed assets to generate sales, shows a gradual decline from 51.07 in Q4 2022 to 43.68 in Q4 2023. This may indicate a decrease in the company's ability to generate revenue from its fixed assets over this period.

On the other hand, the total asset turnover, which evaluates the efficiency of all assets in generating revenue, fluctuates across the quarters, with the highest value of 2.10 in Q3 2022 and the lowest value of 1.46 in Q4 2023. This suggests that the company's overall operational efficiency in generating sales revenue from all its assets has been inconsistent.

Overall, the analysis of Insight Enterprises Inc.'s long-term activity ratios implies that there may be fluctuations in the company's efficiency in utilizing both fixed and total assets to generate sales revenue over the analyzed period. Further investigation is advisable to understand the underlying reasons for these trends and assess their impact on the company's financial performance and long-term sustainability.