OSI Systems Inc (OSIS)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 3.27 | 2.79 | 2.59 | 2.63 | 3.24 | 2.79 | 2.85 | 2.79 | 3.03 | 2.94 | 3.01 | 3.13 | 3.38 | 3.35 | 3.63 | 3.89 | 4.22 | 4.34 | 4.17 | 3.92 |
| Receivables turnover | 2.37 | 2.91 | 3.68 | 3.97 | 3.34 | 3.99 | 3.68 | 3.73 | 3.83 | 4.15 | 4.05 | 4.00 | 3.85 | 4.20 | 4.17 | 4.45 | 4.13 | 4.57 | 4.61 | 4.84 |
| Payables turnover | 6.80 | 7.19 | 7.04 | 6.70 | 7.88 | 8.16 | 7.97 | 6.98 | 8.08 | 7.81 | 7.84 | 7.14 | 7.03 | 7.74 | 10.73 | 10.72 | 11.99 | 10.09 | 9.90 | 10.45 |
| Working capital turnover | 3.84 | 4.09 | 4.50 | 4.93 | 4.75 | 5.26 | 5.19 | 5.61 | 8.93 | 10.42 | 15.50 | 15.90 | 3.13 | 3.24 | 3.64 | 4.01 | 4.04 | 4.48 | 4.49 | 4.89 |
OSI Systems Inc's activity ratios provide insights into the company's efficiency in managing its operations related to inventory, receivables, payables, and working capital.
- Inventory turnover: The company's inventory turnover ratio has shown fluctuations over the periods analyzed, ranging from 2.59 to 4.34. A higher turnover indicates that OSI Systems is selling its inventory quickly, which is generally positive for cash flow and profitability. However, the inconsistency in the ratios may suggest fluctuations in demand or inventory management practices.
- Receivables turnover: OSI Systems has also experienced variability in its receivables turnover ratio, ranging from 2.37 to 4.84. A higher turnover ratio indicates that the company is collecting its receivables efficiently. The increasing trend in recent periods could imply effective credit management and collection efforts.
- Payables turnover: The payables turnover ratio has ranged from 6.70 to 11.99, with higher ratios suggesting that the company is paying its suppliers more quickly. A high turnover ratio indicates good vendor relationships or potentially taking advantage of early payment discounts.
- Working capital turnover: OSI Systems' working capital turnover has shown significant variability, ranging from 3.13 to 15.90. A higher turnover ratio indicates that the company is efficiently utilizing its working capital to generate revenue. The substantial fluctuations in this ratio may be due to changes in the company's operating cycle efficiency.
Overall, analyzing these activity ratios helps assess OSI Systems Inc's operational efficiency and effectiveness in managing its resources to drive business performance.
Average number of days
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 111.74 | 130.67 | 141.17 | 138.80 | 112.68 | 130.69 | 127.98 | 131.00 | 120.50 | 124.15 | 121.40 | 116.58 | 108.14 | 109.02 | 100.59 | 93.94 | 86.48 | 84.08 | 87.57 | 92.99 |
| Days of sales outstanding (DSO) | days | 153.75 | 125.61 | 99.24 | 92.05 | 109.22 | 91.38 | 99.12 | 97.83 | 95.24 | 87.91 | 90.03 | 91.32 | 94.75 | 86.82 | 87.59 | 82.09 | 88.41 | 79.93 | 79.12 | 75.48 |
| Number of days of payables | days | 53.67 | 50.79 | 51.82 | 54.49 | 46.34 | 44.73 | 45.80 | 52.27 | 45.18 | 46.76 | 46.55 | 51.09 | 51.92 | 47.19 | 34.02 | 34.06 | 30.45 | 36.17 | 36.87 | 34.93 |
Based on the activity ratios data provided for OSI Systems Inc, we can observe the following trends:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have shown some fluctuations over the periods, ranging from a low of 84.08 days to a high of 141.17 days.
- The trend indicates that the company has been holding inventory for an average of around 100 to 130 days over the recent periods.
- A decreasing trend in DOH typically indicates more efficient management of inventory, while an increasing trend can suggest potential issues such as overstocking.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have also varied significantly over the periods, ranging from a low of 75.48 days to a high of 153.75 days.
- The trend suggests that the company takes approximately 80 to 120 days on average to collect its accounts receivable.
- A decreasing trend in DSO is generally positive as it signifies faster collection of receivables, whereas an increasing trend may indicate difficulties in collecting payments from customers.
3. Number of Days of Payables:
- The number of days of payables has fluctuated but generally remained within the range of 30 to 55 days.
- The trend indicates that the company takes around 40 to 50 days on average to pay its suppliers and creditors.
- A higher number of days of payables may suggest that the company is able to take advantage of extended payment terms, preserving cash flow.
Overall, an effective analysis of these activity ratios can provide insights into OSI Systems Inc's efficiency in managing its inventory, accounts receivable, and accounts payable, which are crucial for assessing the company's liquidity and operational performance.
Long-term
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 13.50 | 13.26 | 12.36 | 11.76 | 11.68 | 11.00 | 11.03 | 10.83 | 10.77 | 10.42 | 10.06 | 9.99 | 9.68 | 8.66 | 8.57 | 8.81 | 9.08 | 9.15 | 9.16 | 9.24 |
| Total asset turnover | 0.79 | 0.80 | 0.79 | 0.81 | 0.82 | 0.81 | 0.81 | 0.80 | 0.82 | 0.80 | 0.81 | 0.81 | 0.83 | 0.82 | 0.84 | 0.89 | 0.92 | 0.91 | 0.91 | 0.92 |
The fixed asset turnover ratio for OSI Systems Inc has been relatively stable over the past few years, averaging around 10.5 to 12.5 times. This indicates that the company generates between 10.5 to 12.5 units of revenue for every dollar invested in fixed assets such as property, plant, and equipment.
On the other hand, the total asset turnover ratio has shown some fluctuation but generally ranged from 0.79 to 0.92 times. This suggests that OSI Systems Inc generates between 0.79 to 0.92 units of revenue for every dollar invested in total assets, including both fixed and current assets.
Overall, the company appears to be efficiently utilizing both its fixed assets and total assets to generate revenue, with the fixed asset turnover consistently outperforming the total asset turnover. This indicates that OSI Systems Inc is effectively managing its asset base to drive sales and achieve higher turnover rates.