Progyny Inc (PGNY)

Short-term

Turnover ratios

The activity ratios of Progyny Inc provide insights into how efficiently the company manages its inventory, accounts receivable, accounts payable, and working capital.

- Inventory turnover: Unfortunately, the data provided does not include the inventory turnover ratio for any of the years. As a key indicator of how effectively a company is managing its inventory levels, without this ratio, it is challenging to evaluate Progyny's inventory management.

- Receivables turnover: The receivables turnover ratio indicates how many times a company collects its accounts receivable during a period. Progyny's receivables turnover has been fluctuating over the past five years, ranging from 3.28 to 4.88 times. An increase in this ratio signifies faster collection of receivables, which can potentially improve cash flow and reduce the risk of bad debts.

- Payables turnover: The payables turnover ratio measures how efficiently a company pays its suppliers. Progyny's payables turnover has generally been increasing over the years, indicating that the company is taking longer to pay its bills. While a higher payables turnover ratio may suggest improved cash management, it could also strain supplier relationships if payments are excessively delayed.

- Working capital turnover: The working capital turnover ratio reflects how well a company utilizes its working capital to generate revenue. Progyny's working capital turnover has varied over the years, with a peak of 3.13 in 2021. A higher working capital turnover ratio indicates that the company is effectively using its working capital to drive sales, highlighting operational efficiency.

In conclusion, Progyny's activity ratios demonstrate mixed performance in managing its accounts receivable, accounts payable, and working capital. While improvements in receivables turnover and working capital turnover suggest efficiency gains, the lack of inventory turnover data limits a comprehensive analysis of the company's overall activity management.

---

Average number of days

Days of inventory on hand (DOH) for Progyny Inc is not provided in the table, so we are unable to analyze the efficiency of managing inventory turnover.

Days of sales outstanding (DSO) for the company has shown variability over the past five years. In 2023, the DSO decreased to 81.10 days from 111.35 days in 2022, indicating that the company collected its accounts receivable more efficiently. However, the DSO is still higher compared to previous years, suggesting a potential need for improvement in managing receivables.

Number of days of payables for Progyny Inc has also fluctuated over the years. In 2023, the days of payables decreased to 53.87 days from 64.38 days in 2022. This indicates that the company is taking less time to pay its suppliers, which can be a positive sign for cash flow management. However, it is important to monitor the trend to ensure that the company is maintaining good relationships with its suppliers while effectively managing cash flow.

Overall, Progyny Inc should focus on optimizing its accounts receivable and payable processes to improve working capital management and enhance overall efficiency.

---

Long-term

The fixed asset turnover ratio for Progyny Inc has shown a consistent upward trend over the past five years, increasing from 74.50 in 2019 to 106.59 in 2023. This indicates that the company has been more efficient in generating revenue from its fixed assets each year.

On the other hand, the total asset turnover ratio has fluctuated slightly, ranging from 1.36 in 2020 to 1.53 in 2019. Despite the fluctuations, the overall trend has been relatively stable over the five-year period.

Overall, Progyny Inc has been effectively utilizing its fixed assets to generate revenue, as evidenced by the increasing trend in the fixed asset turnover ratio. The total asset turnover ratio, while showing some variability, remains within a reasonable range and indicates that the company is efficiently utilizing its total assets to generate sales.