Nextracker Inc. Class A Common Stock (NXT)

Activity ratios

Short-term

Turnover ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 9.31 7.95 9.99 10.86 8.36 8.48 8.40 11.91 11.70 6.32 6.09 6.04 7.63 6.73 10.16 10.85 11.41
Receivables turnover 6.26 3.76 3.91 3.59 3.21 3.18 3.20 3.64 3.34 3.29 2.92 2.94 3.16 2.87 3.79 3.70 4.46
Payables turnover 3.33 4.58 4.40 4.66 3.69 4.58 4.09 5.55 7.64 5.10 4.10 4.61 4.93 4.35 4.46 4.41 4.16
Working capital turnover 2.63 2.54 2.86 3.06 2.85 3.46 3.68 4.49 5.21 5.21 4.94 5.83 6.06 5.50 6.04 4.87 6.23

Nextracker Inc. Class A Common Stock's Inventory turnover ratio has shown some fluctuation over the years, indicating the efficiency with which the company manages its inventory levels. The ratio decreased from 11.41 in March 2021 to 6.04 in June 2022, before recovering slightly to 9.31 in March 2025. This suggests that the company is selling its inventory at a slower pace but has picked up in recent periods.

The Receivables turnover ratio, which measures how efficiently the company collects on its credit sales, also exhibited variability during the period. It dropped from 4.46 in March 2021 to 2.87 in December 2021 but showed an increasing trend thereafter, reaching 6.26 in March 2025. This improvement indicates that the company is collecting its receivables more effectively in recent quarters.

In terms of Payables turnover, which assesses how efficiently the company pays its suppliers, the ratio fluctuated over the years. It peaked at 7.64 in March 2023 but decreased to 3.33 in March 2025. This variability could imply changes in payment terms or cash flow management strategies during the period.

The Working Capital turnover ratio, highlighting how efficiently the company utilizes its working capital, decreased from 6.23 in March 2021 to 2.63 in March 2025. This decline may indicate a less efficient use of working capital to generate sales over the period.

Overall, while the activity ratios of Nextracker Inc. Class A Common Stock have displayed some fluctuations, there are areas where the company has shown improvements in managing its inventory, receivables, and payables. It will be crucial for the company to continue monitoring and optimizing these ratios to enhance its overall operational efficiency and financial performance.

Average number of days

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 39.19 45.91 36.55 33.60 43.65 43.04 43.43 30.65 31.20 57.74 59.98 60.47 47.83 54.25 35.94 33.65 32.00
Days of sales outstanding (DSO) days 58.28 97.06 93.46 101.75 113.86 114.67 114.06 100.15 109.21 110.78 125.08 124.23 115.37 127.14 96.21 98.65 81.88
Number of days of payables days 109.54 79.74 82.90 78.40 98.81 79.62 89.30 65.81 47.76 71.57 88.92 79.12 74.05 83.99 81.90 82.83 87.67

Nextracker Inc.'s Days of Inventory on Hand (DOH) shows the number of days the company holds inventory before it is sold. The trend indicates that inventory turnover has been relatively stable, with fluctuations observed over the years. The company took around 32 days to sell its inventory as of March 31, 2021, which increased to 60.47 days by June 30, 2022, before settling around 39 days by March 31, 2025.

Days of Sales Outstanding (DSO) reveals the average number of days the company takes to collect revenue after making a sale. The DSO trend shows variations, indicating changes in the efficiency of the company's accounts receivable management. The DSO was approximately 81.88 days on March 31, 2021, increased to 127.14 days by December 31, 2021, and then decreased to 58.28 days by March 31, 2025.

The Number of Days of Payables ratio demonstrates how long the company takes to pay its suppliers. This ratio reveals the company's liquidity and ability to manage its cash flow effectively. Nextracker Inc.'s payables days show fluctuations, ranging from 47.76 days as of March 31, 2023, to 109.54 days by March 31, 2025.

Overall, analyzing these activity ratios provides insights into Nextracker Inc.'s efficiency in managing inventory, collecting receivables, and paying suppliers, which are crucial aspects of its working capital management and financial health.

Long-term

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover — — — — — — — — — 230.54 219.44 — — — — — —
Total asset turnover 0.93 0.93 1.01 1.04 0.99 1.09 1.03 1.19 1.34 1.45 1.28 1.35 1.43 1.30 1.37 1.27 1.36

The Fixed Asset Turnover ratio for Nextracker Inc. Class A Common Stock was not calculable for most of the periods provided in the data except for September 30, 2022 and December 31, 2022, where it stood at 219.44 and 230.54, respectively. These figures indicate that the company generated $219.44 and $230.54 in revenue for each dollar invested in fixed assets during those periods.

In terms of Total Asset Turnover, the ratio fluctuated over the periods. It started at 1.36 on March 31, 2021, reaching its peak at 1.45 on December 31, 2022. However, it then started to decline steadily to 0.93 by March 31, 2025. The Total Asset Turnover ratio signifies how efficiently the company utilized its total assets to generate revenue, reflecting a decrease in efficiency in later years compared to the earlier years.

Overall, the analysis of Nextracker Inc.'s long-term activity ratios suggests fluctuations in asset turnover efficiency over the years. The company exhibited a high level of revenue generation relative to both fixed and total assets initially, but this efficiency declined gradually in the later periods.