Penumbra Inc (PEN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.08 | 0.97 | 0.93 | 1.03 | 1.01 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.51 | 1.39 | 1.39 | 1.34 | 1.10 |
The activity ratios of Penumbra Inc provide insights into the efficiency of the company's operations over the years.
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Penumbra Inc's inventory turnover has shown some fluctuation over the past five years, ranging from 0.93 to 1.08. A higher turnover indicates that the company is selling its products quickly, which can be positive. However, the fluctuating nature of this ratio may indicate variation in demand or inventory management practices.
2. Receivables Turnover:
- Penumbra Inc's receivables turnover data is not available for analysis. Typically, this ratio reflects how efficiently a company collects payments from its customers. The absence of data makes it challenging to assess the company's effectiveness in managing its receivables.
3. Payables Turnover:
- Similar to receivables turnover, there is no data provided for Penumbra Inc's payables turnover ratio. This ratio would have indicated how long the company takes to pay its suppliers, and its absence limits insights into the company's payables management.
4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate revenue. Penumbra Inc's working capital turnover has shown a consistent improvement over the years, ranging from 1.10 to 1.51. A higher turnover suggests that the company is effectively using its working capital to support its operations and generate sales.
In summary, while Penumbra Inc has shown improvements in its working capital turnover, the limited data for receivables and payables turnover ratios makes it challenging to comprehensively assess the company's overall activity efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 337.70 | 376.79 | 390.84 | 353.33 | 360.55 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios for Penumbra Inc based on the provided data are as follows:
1. Days of Inventory on Hand (DOH):
- December 31, 2020: 360.55 days
- December 31, 2021: 353.33 days
- December 31, 2022: 390.84 days
- December 31, 2023: 376.79 days
- December 31, 2024: 337.70 days
The DOH ratio measures how long it takes for a company to sell its inventory. A lower DOH indicates that the company is efficiently managing its inventory turnover, which can lead to lower carrying costs and potential higher liquidity.
2. Days of Sales Outstanding (DSO):
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided
DSO is a measure of how long it takes a company to collect its accounts receivable. In this case, the DSO data is not provided, making it challenging to assess the efficiency of Penumbra Inc in collecting outstanding sales amounts.
3. Number of Days of Payables:
- December 31, 2020: Not provided
- December 31, 2021: Not provided
- December 31, 2022: Not provided
- December 31, 2023: Not provided
- December 31, 2024: Not provided
The number of days of payables ratio indicates how long it takes for a company to pay its suppliers. Without the data provided, it is difficult to evaluate the company's payment practices and liquidity management in relation to its suppliers.
Overall, analyzing these activity ratios can provide insights into how efficiently Penumbra Inc is managing its inventory, collecting receivables, and paying its suppliers. Each ratio plays a crucial role in assessing the company's operational efficiency and financial health.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 2.91 | 3.29 | 11.63 |
| Total asset turnover | 0.78 | 0.68 | 0.62 | 0.60 | 0.68 |
From the provided data, we can observe the following trends in Penumbra Inc's long-term activity ratios:
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets.
- In 2020, Penumbra Inc achieved a high fixed asset turnover ratio of 11.63, indicating that the company generated significant revenue relative to its investment in fixed assets.
- However, there was a noticeable decline in this ratio in the following years, dropping to 3.29 in 2021 and further to 2.91 in 2022.
- It is important to note that the data is not available for 2023 and 2024, suggesting a lack of information for those years.
2. Total Asset Turnover:
- The total asset turnover ratio indicates how efficiently a company utilizes its total assets to generate revenue.
- Penumbra Inc's total asset turnover ratio was 0.68 in 2020, which means that the company generated $0.68 in revenue for every dollar of assets it had.
- There was a slight decrease in this ratio in 2021 and 2022, with values of 0.60 and 0.62 respectively.
- Interestingly, the total asset turnover ratio improved in 2023 to 0.68 and then further increased to 0.78 in 2024, which suggests that Penumbra Inc became more efficient in utilizing its assets to generate revenue over the years.
In conclusion, the fixed asset turnover ratio declined over the years, indicating a potential decrease in the efficiency of generating revenue from fixed assets. On the other hand, the total asset turnover ratio fluctuated but showed an overall improvement by 2024, signifying enhanced efficiency in utilizing total assets to generate revenue.