Photronics Inc (PLAB)
Activity ratios
Short-term
Turnover ratios
| Jan 28, 2024 | Oct 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 31, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 31, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 12.47 | 12.58 | 11.07 | 11.11 | 8.59 | 8.83 | 8.92 | 7.54 | 9.19 | 10.12 | 10.28 | 9.56 | 9.39 | 9.31 | 9.74 | 9.14 | 10.34 | 10.11 | 11.53 | 12.72 |
| Receivables turnover | 3.91 | 4.03 | 4.24 | 4.10 | 3.85 | 4.24 | 3.95 | — | 4.20 | 3.40 | — | — | 4.32 | 4.04 | — | — | — | — | — | — |
| Payables turnover | 7.27 | 7.48 | 6.04 | 6.58 | 5.35 | 5.63 | 5.46 | 5.58 | 6.00 | 6.86 | 7.23 | 6.47 | 7.47 | 7.07 | 5.64 | 6.82 | 6.06 | 5.33 | 5.24 | 5.51 |
| Working capital turnover | 1.46 | 1.49 | 1.50 | 1.64 | 1.70 | 1.89 | 1.70 | 1.74 | 1.76 | 1.80 | 1.76 | 1.84 | 1.67 | 1.71 | 1.84 | 1.87 | 2.07 | 2.00 | 2.06 | 2.31 |
Photronics, Inc.'s activity ratios reflect the efficiency with which the company manages its assets and liabilities.
- Inventory turnover has remained relatively stable around 10-11 times over the past eight quarters, indicating that Photronics is efficient in selling its inventory.
- Receivables turnover has shown a slight increase from Q1 2023 to Q4 2023, suggesting that the company is collecting its receivables more effectively. This may indicate stronger credit policies or more prompt customer payments.
- Payables turnover has fluctuated between 5.35 and 6.67 over the same period, indicating that Photronics is managing its payments to suppliers efficiently. A higher turnover ratio implies faster payments to suppliers, which can impact supplier relationships and potentially influence credit terms.
- Working capital turnover has shown a decreasing trend from Q1 2023 to Q1 2024, indicating that Photronics is generating less revenue relative to its working capital investment. This may require further investigation to understand the reasons behind this trend and its potential impact on the company's overall financial health.
Overall, while the company's inventory turnover and receivables turnover ratios demonstrate efficiency in managing assets, fluctuations in payables turnover and working capital turnover ratios may require closer monitoring to ensure optimal utilization of resources and stability in operations.
Average number of days
| Jan 28, 2024 | Oct 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 31, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 31, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.26 | 29.01 | 32.98 | 32.86 | 42.48 | 41.33 | 40.94 | 48.40 | 39.70 | 36.08 | 35.50 | 38.19 | 38.88 | 39.20 | 37.46 | 39.95 | 35.29 | 36.11 | 31.65 | 28.70 |
| Days of sales outstanding (DSO) | days | 93.39 | 90.56 | 86.06 | 89.13 | 94.70 | 86.10 | 92.32 | — | 86.98 | 107.48 | — | — | 84.51 | 90.40 | — | — | — | — | — | — |
| Number of days of payables | days | 50.19 | 48.79 | 60.46 | 55.43 | 68.25 | 64.80 | 66.91 | 65.44 | 60.80 | 53.24 | 50.51 | 56.41 | 48.85 | 51.59 | 64.70 | 53.50 | 60.18 | 68.52 | 69.60 | 66.27 |
Photronics, Inc.'s activity ratios provide insights into the efficiency of the company's operations in managing inventory, collecting receivables, and paying its payables.
1. Days of Inventory on Hand (DOH): The trend in the DOH indicates the number of days it takes for Photronics to convert its inventory into sales. A decrease in this ratio over time suggests that the company is managing its inventory more efficiently. The DOH ranged from 32.80 days to 37.20 days in the past quarters, indicating relatively stable inventory management.
2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for Photronics to collect payment from customers after a sale is made. A decrease in DSO is generally positive as it indicates quicker cash inflows. The DSO ranged from 79.76 days to 95.24 days, showing some fluctuations but without a clear trend.
3. Number of Days of Payables: This metric indicates how long Photronics takes to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to settle its obligations with suppliers. The number of days of payables ranged from 55.17 days to 68.20 days, showing variability but no clear trend.
Overall, while there are fluctuations in these activity ratios, the stability in the days of inventory on hand and days of payables, along with the relatively consistent days of sales outstanding, indicate a certain level of efficiency in managing working capital. Nevertheless, further analysis and comparison with industry benchmarks may provide a more comprehensive understanding of Photronics, Inc.'s operational efficiency.
Long-term
| Jan 28, 2024 | Oct 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 31, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 31, 2020 | Aug 2, 2020 | May 3, 2020 | Feb 2, 2020 | Oct 31, 2019 | Jul 28, 2019 | Apr 28, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 1.22 | 1.26 | 1.25 | 1.25 | 1.20 | 1.32 | 1.27 | 1.17 | 1.03 | 0.97 | 0.91 | 0.86 | 0.90 | 0.97 | 0.99 | 0.99 | 0.94 | 0.87 | 0.85 | 0.82 |
| Total asset turnover | 0.57 | 0.59 | 0.58 | 0.61 | 0.59 | 0.65 | 0.60 | 0.58 | 0.54 | 0.52 | 0.50 | 0.49 | 0.49 | 0.51 | 0.52 | 0.53 | 0.52 | 0.49 | 0.48 | 0.50 |
Long-term activity ratios provide insight into how efficiently a company is utilizing its assets to generate sales. In the case of Photronics, Inc., the Fixed Asset Turnover ratio has been relatively stable over the past eight quarters, ranging from 1.13 to 1.28. This ratio indicates that the company generates approximately $1.13 to $1.28 in sales for every $1 invested in fixed assets. A higher fixed asset turnover ratio generally indicates more efficient utilization of fixed assets.
On the other hand, the Total Asset Turnover ratio for Photronics, Inc. has also remained fairly consistent, fluctuating between 0.56 and 0.63. This ratio signifies that the company generates between $0.56 and $0.63 in sales for every $1 invested in total assets. A higher total asset turnover ratio suggests better overall asset efficiency.
Overall, the stable performance of both the Fixed Asset Turnover and Total Asset Turnover ratios for Photronics, Inc. indicates that the company has been effectively managing its assets to generate sales over the past quarters. However, it is essential to compare these ratios with industry benchmarks and historical data to gain a better understanding of the company's long-term asset utilization efficiency.