Pacira Pharmaceuticals Inc (PCRX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.77 | 2.07 | 1.42 | 1.81 | 1.83 |
| Receivables turnover | 6.03 | 6.37 | 5.62 | 8.10 | 8.86 |
| Payables turnover | 11.76 | 13.09 | 13.30 | 11.25 | 8.34 |
| Working capital turnover | 1.54 | 1.79 | 1.57 | 1.08 | 1.40 |
Pacira BioSciences Inc's inventory turnover ratio has shown a declining trend over the past five years, decreasing from 1.83 in 2019 to 1.77 in 2023. This indicates that the company is selling its inventory less frequently in recent years.
In contrast, the receivables turnover ratio has fluctuated but generally maintained a stable level over the same period, indicating that the company is collecting its receivables consistently over time.
The payables turnover ratio has shown a fluctuating pattern but has generally increased from 8.34 in 2019 to 11.76 in 2023. This suggests that the company is taking longer to pay its suppliers, which could indicate either a stretched liquidity position or improved bargaining power with suppliers.
The working capital turnover ratio has also fluctuated over the years, with a peak in 2022. This ratio measures how effectively the company is utilizing its working capital to generate sales. The declining trend from 1.90 in 2022 to 1.64 in 2023 may indicate inefficiencies in managing its working capital for generating sales.
Overall, analyzing Pacira BioSciences Inc's activity ratios reveals varying trends in managing inventory, receivables, payables, and working capital turnover, which can provide insights into the company's operational efficiency and liquidity management strategies.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 206.25 | 175.94 | 256.47 | 201.12 | 199.40 |
| Days of sales outstanding (DSO) | days | 60.55 | 57.29 | 64.92 | 45.06 | 41.21 |
| Number of days of payables | days | 31.03 | 27.87 | 27.44 | 32.45 | 43.78 |
Days of inventory on hand (DOH) measures how many days it takes for the company to sell its inventory. A higher DOH indicates that the company is holding onto its inventory for a longer period, which may tie up cash and increase carrying costs. Pacira BioSciences Inc's DOH has fluctuated over the years, with a significant decrease in 2022 compared to 2021, followed by an increase in 2023.
Days of sales outstanding (DSO) measures how long it takes for the company to collect payment after making a sale. A lower DSO indicates that the company is efficient in collecting its receivables. Pacira's DSO has increased over the years, with a notable jump in 2021 compared to 2020 and a further increase in 2023.
Number of days of payables measures how long it takes the company to pay its suppliers. A higher number of days of payables may indicate that the company is taking longer to settle its payables, potentially improving cash flow. Pacira's number of days of payables has fluctuated, showing a decrease from 2019 to 2020, followed by fluctuations in subsequent years.
Overall, Pacira BioSciences Inc's activity ratios suggest varying trends in inventory management, accounts receivable collection, and accounts payable payment over the years, which may impact the company's liquidity and operating efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 3.66 | 3.42 | 2.87 | 3.14 | 4.02 |
| Total asset turnover | 0.40 | 0.37 | 0.26 | 0.34 | 0.51 |
Pacira BioSciences Inc's long-term activity ratios reflect its efficiency in generating sales relative to its fixed assets and total assets over the past five years.
The fixed asset turnover ratio has shown a fluctuating trend, ranging from 2.87 to 4.02 over the period. This ratio indicates that Pacira BioSciences Inc is effectively utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests better efficiency in utilizing fixed assets to generate sales. The gradual increase in this ratio from 2.87 in 2021 to 4.02 in 2019 reflects improved efficiency in utilizing fixed assets for revenue generation.
On the other hand, the total asset turnover ratio has also demonstrated fluctuation, ranging from 0.26 to 0.51 over the same period. This ratio indicates the company's ability to generate revenue from its total assets. A higher total asset turnover ratio signifies more efficient utilization of both fixed and current assets to drive sales. The company's total asset turnover ratio has shown a mixed trend with fluctuations over the years.
Overall, Pacira BioSciences Inc's fixed asset turnover ratio indicates consistent improvement in utilizing fixed assets to generate sales, while the total asset turnover ratio demonstrates variability in efficiently generating revenue from its total assets. Further analysis and comparison with industry peers can provide more insights into the company's asset utilization efficiency.