Patterson Companies Inc (PDCO)

Short-term

Turnover ratios

Patterson Companies Inc's inventory turnover ratio has shown a fluctuating trend over the periods provided, ranging from 5.39 to 6.68 times. This indicates that the company is managing its inventory efficiently, with faster turnover ratios generally being more favorable.

The receivables turnover ratio has not been consistently reported, with some periods showing no data. However, the available data shows a range of values from 12.07 to 17.16. A higher turnover ratio indicates that the company is collecting its receivables more quickly, which is a positive sign for its liquidity.

The payables turnover ratio, like the receivables turnover ratio, has inconsistent data reported. The available values range from 6.97 to 7.66. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which could either indicate strong supplier relationships or potential cash flow management strategies.

The working capital turnover ratio has shown an increasing trend over the periods provided, ranging from 9.24 to 16.32. This indicates that the company is efficiently using its working capital to generate sales, which is a positive indicator of operational efficiency.

Overall, Patterson Companies Inc's activity ratios suggest that the company is effectively managing its inventory, receivables, payables, and working capital to support its operations and generate revenue.

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Average number of days

The activity ratios of Patterson Companies Inc, particularly the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the efficiency of its operations and management of working capital.

1. Days of Inventory on Hand (DOH)
- The DOH measures how many days on average the company holds inventory before selling it. In the given data, Patterson Companies Inc's DOH fluctuated between 54.60 days and 67.67 days over the period under review.
- A lower DOH indicates efficient inventory management, as the company is able to quickly turn over its inventory into sales. A decreasing trend in DOH can be considered positive unless it leads to stockouts.
- In the most recent period, the DOH was at 62.68 days as of January 31, 2025, indicating a moderate level of inventory on hand relative to sales, which may necessitate attention to avoid overstocking.

2. Days of Sales Outstanding (DSO)
- DSO represents the average number of days it takes for the company to collect payment from its customers after a sale. However, blank values in the data suggest missing information regarding DSO for several periods.
- A lower DSO is desirable as it indicates quicker collection of receivables, improving cash flow. On the other hand, a high DSO may raise concerns about liquidity and potential bad debts.
- The available data shows fluctuating DSO levels, with values ranging from 21.27 days to 30.23 days. This indicates variability in the company's collection efficiency during the analyzed period.

3. Number of Days of Payables
- This metric reflects the average number of days the company takes to pay its suppliers. Similar to DSO, there are blank values for the Number of Days of Payables in the dataset for various periods.
- A higher Number of Days of Payables suggests that the company takes longer to pay its suppliers, potentially improving cash flow in the short term. However, excessively long payment periods may strain supplier relationships.
- Patterson Companies Inc's Number of Days of Payables ranged from 47.66 days to 52.37 days in the data provided, indicating a relatively consistent payment behavior over the analyzed periods.

Overall, a detailed analysis of Patterson Companies Inc's activity ratios reveals the company's effectiveness in managing inventory levels, collecting receivables, and paying suppliers. Monitoring and optimizing these ratios can help the company enhance operational efficiency, cash flow management, and overall financial performance.

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Long-term

The Fixed Asset Turnover ratio for Patterson Companies Inc has shown a fluctuating trend over the years, ranging from a high of 31.30 to a low of 21.65. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales. A higher ratio indicates better efficiency in using fixed assets to generate revenue.

On the other hand, the Total Asset Turnover ratio has also varied over time, with values ranging from 2.17 to 2.34. This ratio evaluates the company's ability to generate sales revenue from its total assets. A higher total asset turnover ratio implies that the company is effectively generating sales relative to its total assets.

Overall, both ratios provide insights into Patterson Companies Inc's operational efficiency in utilizing its assets to generate revenue. It is essential for the company to monitor these ratios to ensure optimal asset utilization and sustainable business performance.