Impinj Inc (PI)

Short-term

Turnover ratios

Impinj Inc's activity ratios provide insights into how efficiently the company manages its resources. Starting with the inventory turnover ratio, we see a fluctuating trend over the years. The ratio increased from 3.78 in 2020 to 7.44 in 2021, indicating a significant improvement in inventory management efficiency. However, in 2022 and 2023, the ratio declined to 4.38 and 2.70, respectively, suggesting potential issues with inventory turnover. In 2024, there was a slight increase to 2.76, but it still remained relatively low.

Moving on to the receivables turnover ratio, we observe a relatively stable trend. The ratio ranged from 5.10 to 6.44 over the five years, indicating that Impinj is collecting its receivables efficiently and consistently.

In contrast, the payables turnover ratio exhibited significant variability. The ratio was relatively stable at around 13.55-13.93 in 2020 and 2021, but it dropped sharply to 8.12 in 2022 before surging to 30.30 in 2023. Such a drastic increase in 2023 could indicate a change in payment terms or negotiation strategies with suppliers. The ratio then decreased to 15.90 in 2024.

Lastly, the working capital turnover ratio showed an increasing trend from 0.94 in 2020 to 1.27 in 2023. This indicates that Impinj is generating more revenue per dollar of working capital invested. However, it's important to note that the data for 2024 is missing, preventing a complete analysis of this ratio for that year.

Overall, while the receivables turnover ratio reflects consistent efficiency in collecting receivables, Impinj's management of inventory and payables has been more volatile. Monitoring and improving inventory and payables turnover could enhance the company's overall efficiency and financial performance.

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Average number of days

The activity ratios of Impinj Inc show the efficiency of the company in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand decreased from 96.50 days in December 2020 to 49.03 days in December 2021, indicating a significant improvement in managing inventory levels.
- However, there was an increase in DOH to 83.35 days in December 2022, followed by a notable rise to 135.14 days in December 2023, and a continued increase to 132.18 days in December 2024. This trend indicates a potential issue with inventory management, as the company may be holding excess inventory or facing challenges in selling existing stock.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding remained relatively stable over the years, with a slight decrease from 67.40 days in December 2020 to 56.63 days in December 2024. This suggests that Impinj has been successful in collecting receivables efficiently and maintaining a consistent credit policy.

3. Number of Days of Payables:
- The number of days of payables decreased from 26.95 days in December 2020 to 26.19 days in December 2021, indicating that Impinj was able to manage its payables effectively.
- However, there was a significant increase in the number of days of payables to 44.96 days in December 2022, followed by a sharp decrease to 12.04 days in December 2023, and a slight increase to 22.96 days in December 2024. These fluctuations suggest potential challenges in managing supplier payments efficiently.

Overall, while Impinj Inc has shown effectiveness in managing its receivables, there are some concerns regarding inventory management and payables that may require further attention to optimize working capital efficiency.

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Long-term

Impinj Inc's Fixed Asset Turnover ratio has shown a declining trend over the years, decreasing from 8.19 in December 2020 to 7.23 in December 2024. This suggests that the company's ability to generate revenue from its fixed assets has weakened somewhat.

In contrast, the Total Asset Turnover ratio has fluctuated over the same period, reaching its lowest point in December 2021 at 0.60 and peaking at 0.84 in December 2023. This ratio indicates the company's overall efficiency in utilizing all its assets to generate sales, with a higher ratio generally considered better.

Overall, the analysis of Impinj Inc's long-term activity ratios indicates some fluctuation in efficiency in utilizing both fixed and total assets to generate revenue over the analyzed period.