Plexus Corp (PLXS)

Short-term

Turnover ratios

Plexus Corp's activity ratios provide insights into its efficiency in managing various aspects of its operations.

1. Inventory turnover: The inventory turnover ratio indicates how effectively Plexus Corp is managing its inventory levels. The trend shows slight fluctuations but generally remains around 2.5 to 3 times per year, indicating that the company is efficiently selling and replenishing its inventory.

2. Receivables turnover: The receivables turnover ratio reflects how quickly Plexus Corp collects payments from its customers. The company has a relatively consistent receivables turnover ratio above 10, suggesting that it efficiently collects payments from customers.

3. Payables turnover: The payables turnover ratio measures how quickly Plexus Corp pays its suppliers. The trend shows minor fluctuations but generally remains above 5 times per year, indicating that the company effectively manages its payment obligations to suppliers.

4. Working capital turnover: The working capital turnover ratio demonstrates how well Plexus Corp utilizes its working capital to generate sales. The trend shows slight fluctuations but generally remains above 6 times per year, indicating that the company efficiently uses its working capital to support its operations and generate revenue.

Overall, Plexus Corp's activity ratios suggest that the company operates with efficiency in managing its inventory, receivables, payables, and working capital, which are crucial aspects of its business operations. However, further analysis and comparison with industry averages could provide deeper insights into the company's performance in these areas.

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Average number of days

Plexus Corp's activity ratios provide insights into its efficiency in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The trend in DOH indicates the number of days it takes for Plexus Corp to convert its inventory into sales. Over the 5 quarters displayed, there was a general fluctuation in the DOH metric, with a peak at 272.92 days in the first quarter of 2022 and a low of 111.64 days in the fourth quarter of 2020.
- This suggests variability in Plexus Corp's inventory management efficiency, impacting its working capital and storage costs.

2. Days of Sales Outstanding (DSO):
- The DSO metric measures how long it takes for Plexus Corp to collect payment after a sale is made. There is limited data available for this metric, but a decreasing trend over time indicates faster collection, which is favorable for cash flow management and liquidity.

3. Number of Days of Payables:
- This metric reflects the average number of days Plexus Corp takes to pay its suppliers. A longer payable period means the company can hold onto cash longer, improving cash flow.
- The data shows fluctuations in the number of days of payables, with a peak of 163.68 days in the fourth quarter of 2021 and a low of 57.33 days in the second quarter of 2023.
- A consistent increase in days of payables may indicate strained supplier relationships or liquidity concerns, while a substantial decrease may signify aggressive working capital management.

Overall, analyzing these activity ratios can help investors and stakeholders assess Plexus Corp's operational efficiency and financial health in terms of inventory turnover, collection of receivables, and payment of liabilities.

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Long-term

Plexus Corp's long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate sales. The fixed asset turnover ratio has been relatively stable over the past few years, ranging from 16.02 to 20.17. This indicates that Plexus is generating a consistent level of sales relative to its investment in fixed assets.

On the other hand, the total asset turnover ratio has shown some fluctuation, with values ranging from 1.44 to 3.00. Despite the variability, the ratio generally indicates that Plexus is effectively utilizing its total assets to generate sales revenue.

Overall, these ratios suggest that Plexus Corp has been effectively managing its assets to drive revenue generation, with the total asset turnover ratio reflecting a more comprehensive view of asset utilization compared to the fixed asset turnover ratio.