Impinj Inc (PI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.70 | 4.38 | 7.44 | 3.78 | 3.98 |
| Receivables turnover | 5.51 | 5.10 | 5.35 | 5.42 | 6.42 |
| Payables turnover | 30.30 | 8.12 | 13.93 | 13.55 | 24.29 |
| Working capital turnover | 1.27 | 1.09 | 0.86 | 0.94 | 0.97 |
Impinj Inc's activity ratios provide insights into how efficiently the company is managing its inventory, receivables, payables, and working capital.
1. Inventory Turnover: The inventory turnover ratio has been decreasing over the last five years, indicating that the company is holding onto its inventory for a longer period before converting it into sales. This may suggest potential issues with inventory management or demand forecasting.
2. Receivables Turnover: The receivables turnover ratio has remained relatively stable over the years, indicating that Impinj Inc has been efficient in collecting payments from its customers. A higher turnover ratio suggests that the company is efficiently managing its accounts receivable.
3. Payables Turnover: The payables turnover ratio has shown significant fluctuations, with a sharp increase in 2023. A higher turnover ratio in payables indicates that the company is taking longer to pay its suppliers, which may affect relationships with vendors or liquidity management.
4. Working Capital Turnover: The working capital turnover ratio has generally been increasing, which could suggest improved efficiency in utilizing working capital to generate sales. A higher turnover ratio indicates that the company is effectively using its working capital to support its operations.
Overall, while the company's receivables turnover and working capital turnover ratios appear favorable, the decreasing trend in inventory turnover and fluctuations in payables turnover may require closer monitoring and potential operational adjustments to enhance efficiency and cash flow management.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 135.14 | 83.35 | 49.03 | 96.50 | 91.63 |
| Days of sales outstanding (DSO) | days | 66.19 | 71.60 | 68.23 | 67.40 | 56.90 |
| Number of days of payables | days | 12.04 | 44.96 | 26.19 | 26.95 | 15.02 |
Days of inventory on hand (DOH) measures how many days, on average, inventory is held before being sold. Impinj Inc's DOH has been fluctuating over the years, with a significant increase in 2023 compared to 2022, indicating that inventory turnover has slowed down. This may suggest potential issues with inventory management or declining sales efficiency.
Days of sales outstanding (DSO) represents the average number of days it takes for Impinj Inc to collect payment after making a sale. The DSO has varied over the years but has generally been relatively stable, indicating that the company has been effective in collecting receivables promptly. A decrease from 2022 to 2023 suggests an improvement in receivables management efficiency.
Number of days of payables shows how long Impinj Inc takes to pay its suppliers. A lower number of days indicates that the company is paying its suppliers more quickly. The declining trend from 2020 to 2023 may signal improved relationships with suppliers, but it could also potentially strain cash flow if payables are being paid too quickly.
In summary, Impinj Inc should focus on optimizing its inventory management to improve inventory turnover, maintain its efficient receivables collection practices, and carefully manage its payables to strike a balance between cash flow management and supplier relationships.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 6.75 | 6.53 | 6.90 | 8.19 | 8.73 |
| Total asset turnover | 0.84 | 0.73 | 0.60 | 0.65 | 0.71 |
The fixed asset turnover ratio for Impinj Inc has been decreasing slightly over the past five years, indicating that the company is generating slightly less revenue from its fixed assets compared to previous years. This may suggest that the company's fixed assets are becoming less efficient in generating sales. However, it is important to note that the ratio remains relatively high, indicating that the company is still able to generate significant sales from its fixed assets.
On the other hand, the total asset turnover ratio for Impinj Inc has shown a fluctuating trend over the same period, with a general increase from 2019 to 2021 followed by a slight decrease in 2022 and 2023. This ratio measures the company's ability to generate revenue from all its assets, including fixed assets and current assets. Despite the fluctuations, the total asset turnover ratio for Impinj Inc has been relatively low, suggesting that the company may not be efficiently utilizing its total assets to generate sales.
Overall, the long-term activity ratios indicate that Impinj Inc may need to focus on improving the efficiency of both its fixed assets and total assets to enhance revenue generation and profitability in the future.