Photronics Inc (PLAB)
Activity ratios
Short-term
Turnover ratios
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 11.18 | 12.58 | 11.77 | 10.12 | 9.31 |
| Receivables turnover | 3.73 | 4.03 | 4.24 | 3.40 | 4.03 |
| Payables turnover | 8.03 | 7.48 | 7.51 | 6.86 | 7.07 |
| Working capital turnover | 1.16 | 1.49 | 1.89 | 1.80 | 1.71 |
Photronics Inc's activity ratios provide insights into the efficiency with which the company manages its assets and liabilities.
- Inventory turnover has been relatively stable over the past five years, ranging from 9.31 to 12.58, indicating that the company is effectively managing its inventory levels and turning over its inventory multiple times a year.
- Receivables turnover has shown some fluctuation, with the ratio peaking in 2022 at 4.24 and then declining to 3.73 in 2024. This suggests that the company may be taking longer to collect payments from customers in recent years.
- Payables turnover has also been relatively consistent, hovering around 7 to 8 times a year, indicating that the company is efficiently managing its accounts payable by paying suppliers in a timely manner.
- Working capital turnover has seen a decreasing trend over the past five years, from 1.71 in 2020 to 1.16 in 2024. This could indicate that the company is utilizing its working capital less efficiently to generate sales revenue.
In summary, while Photronics Inc appears to be effectively managing its inventory and payables, there may be room for improvement in managing its receivables and working capital to enhance overall operational efficiency and profitability.
Average number of days
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 32.64 | 29.01 | 31.00 | 36.08 | 39.20 |
| Days of sales outstanding (DSO) | days | 97.75 | 90.56 | 86.11 | 107.48 | 90.49 |
| Number of days of payables | days | 45.46 | 48.79 | 48.60 | 53.24 | 51.59 |
Photronics Inc's days of inventory on hand (DOH) has shown a fluctuating trend over the past five years, ranging from 29.01 days to 39.20 days. The increase in 2021 and 2020 indicates that the company held inventory for a longer period before converting it into sales, possibly resulting in increased carrying costs. However, in 2022 and 2023, the DOH decreased, suggesting improved efficiency in managing inventory levels.
In terms of days of sales outstanding (DSO), there has been variability as well, with the range from 86.11 days to 107.48 days. A higher DSO indicates slower collection of receivables, which may lead to cash flow challenges. The increase in 2021 compared to 2020 suggests potential issues with collecting receivables timely, but this improved in 2023 and 2024, indicating better management of accounts receivable.
Regarding the number of days of payables, Photronics Inc has been maintaining a consistent range between 45.46 days and 53.24 days over the five-year period. The stable payables turnover may indicate a consistent payment policy with suppliers.
Overall, while fluctuations have been observed in the activity ratios of Photronics Inc over the years, the company has shown improvements in inventory management and accounts receivable collection efficiency. Sustaining a steady number of days of payables reflects a stable relationship with suppliers.
Long-term
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.17 | 1.26 | 1.32 | 0.97 | 0.96 |
| Total asset turnover | 0.51 | 0.59 | 0.65 | 0.52 | 0.51 |
The fixed asset turnover ratio measures how effectively a company generates revenue from its fixed assets. Photronics Inc's fixed asset turnover has been fluctuating over the past five years, ranging from 0.96 to 1.32. This indicates that the company's ability to generate sales from its fixed assets has varied, with a peak in 2022.
On the other hand, the total asset turnover ratio reflects how efficiently a company utilizes all its assets to generate sales. Photronics Inc's total asset turnover has also been inconsistent, with values between 0.51 and 0.65. This suggests that the company's overall efficiency in generating revenue from all its assets has been moderate, with a slight improvement in 2022 compared to the previous years.
Overall, while there have been fluctuations in both the fixed asset turnover and total asset turnover ratios for Photronics Inc, it is crucial for the company to focus on optimizing its asset utilization to improve its long-term profitability and operational efficiency.