Progyny Inc (PGNY)

Short-term

Turnover ratios

The activity ratios for Progyny Inc provide insights into the efficiency of the company's operations in managing its assets and liabilities during the specified periods.

Receivables turnover, which measures how efficiently the company is collecting on its credit sales, has been relatively stable over the quarters, ranging from 2.71 to 4.50. A higher receivables turnover indicates a shorter time for collecting payments from customers, which can improve the company's cash flow.

Payables turnover, which shows how effectively the company pays its suppliers, has also been consistent, ranging from 5.13 to 6.78. A higher payables turnover suggests that the company is managing its trade credit effectively, potentially enhancing relationships with suppliers.

Working capital turnover, a measure of how efficiently the company utilizes its working capital to generate revenue, has shown a gradual decline from 3.05 to 2.40 over the quarters. A decreasing trend in working capital turnover may indicate that the company is becoming less efficient in utilizing its current assets to support its operations and sales.

However, the lack of data on inventory turnover limits a comprehensive analysis of Progyny Inc's ability to manage its inventory levels efficiently. Overall, monitoring and analyzing these activity ratios can help stakeholders understand how well Progyny Inc is utilizing its resources to generate revenue and manage its cash flow effectively.

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Average number of days

Progyny Inc's activity ratios provide insight into the efficiency of the company's operations in managing its inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH): The data for Days of Inventory on Hand is missing across all quarters, indicating that the company has not provided this information consistently. This ratio would have shown how many days, on average, Progyny holds its inventory before selling it. Without this data, it is challenging to assess the efficiency of the company in managing its inventory levels.

2. Days of Sales Outstanding (DSO): The DSO ratio measures how long, on average, it takes for Progyny to collect its accounts receivable. The trend for DSO shows some volatility, with the number of days ranging from 81.10 to 134.52 days over the past year. Lower DSO indicates quicker collections, which is favorable as it signifies efficient management of credit and cash flow.

3. Number of Days of Payables: This ratio represents the number of days it takes for Progyny to pay its suppliers. The company has consistently taken between 53.87 to 78.16 days to settle its payables over the last four quarters. A longer period may indicate favorable payment terms negotiated with suppliers but could also suggest potential liquidity constraints or inefficiencies in managing working capital.

Overall, Progyny Inc's DSO indicates room for improvement in collecting receivables efficiently. The missing data on DOH prevents a comprehensive analysis of inventory management, while the consistency in payables days suggests stability in managing supplier payments. To enhance operational efficiency and cash flow, Progyny may need to focus on optimizing inventory levels, reducing DSO, and ensuring timely payments to suppliers.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. Progyny Inc has shown a consistent improvement in this ratio over the past eight quarters, with values ranging from 94.00 to 106.59. This indicates that the company has been able to generate more sales revenue relative to its investment in fixed assets over time. A higher fixed asset turnover ratio is generally favorable as it suggests that the company is using its fixed assets effectively to drive sales.

On the other hand, the total asset turnover ratio reflects the company's overall efficiency in generating sales revenue from all its assets, both fixed and current. Progyny Inc has maintained a relatively stable total asset turnover ratio over the same period, with values fluctuating between 1.33 and 1.45. This indicates that the company has been able to efficiently generate sales revenue in relation to its total assets.

Overall, the trend in both fixed asset turnover and total asset turnover ratios for Progyny Inc suggests that the company is effectively managing its assets to drive sales growth and improve operational efficiency. However, further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's long-term activity ratios.