Plexus Corp (PLXS)

Short-term

Turnover ratios

Plexus Corp's inventory turnover ratio has been relatively stable over the past years, ranging from 1.34 to 3.94. This indicates that the company is efficiently managing its inventory levels, with a higher ratio suggesting a more effective utilization of inventory.

The receivables turnover ratio for Plexus Corp has been varying, showing values between 10.47 and 13.15. This suggests that the company is effectively collecting its accounts receivable, with a higher turnover ratio indicating a shorter time period to collect outstanding payments from customers.

In terms of payables turnover, Plexus Corp has seen fluctuations in the ratio, ranging from 2.23 to 6.93. A higher payables turnover ratio indicates that the company is taking less time to pay its suppliers, which can be beneficial for cash flow management.

For working capital turnover, Plexus Corp has generally maintained a stable ratio between 4.38 and 9.62. A higher working capital turnover ratio indicates that the company efficiently utilizes its working capital to generate sales, demonstrating effective management of current assets and liabilities.

Overall, Plexus Corp's activity ratios reflect operational efficiency in managing inventory, collecting receivables, paying suppliers, and utilizing working capital to generate sales. However, it is important for the company to continue monitoring these ratios to ensure optimal performance and sustainable growth.

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Average number of days

Based on the activity ratios provided for Plexus Corp, we can observe the following trends:

1. Days of Inventory on Hand (DOH):
- The company's days of inventory on hand have been fluctuating over the periods analyzed, ranging from as low as 92.62 days to as high as 272.92 days.
- There is a general trend of improving inventory management efficiency as evidenced by the decreasing trend in recent quarters.
- Plexus Corp has shown efforts to reduce excess inventory levels, which is essential for optimizing working capital and reducing storage costs.

2. Days of Sales Outstanding (DSO):
- The data for days of sales outstanding is incomplete, with missing values for multiple periods.
- The available data indicates some variability in the collection period for accounts receivable, ranging from 27.76 days to 34.87 days.
- A lower DSO is generally preferred as it implies faster conversion of sales into cash, indicating efficient accounts receivable management.

3. Number of Days of Payables:
- Plexus Corp has shown a mix of payment practices over the periods analyzed, with the number of days of payables ranging from 52.67 days to 163.68 days.
- The company has flexibility in managing payment terms with its suppliers, with periods of both shorter and longer payable days.
- Extending payment terms can positively impact cash flow but may strain supplier relationships if not managed effectively.

Overall, Plexus Corp's inventory management has improved over the quarters, while its accounts receivable and accounts payable management practices have shown varying trends. Monitoring and optimizing these activity ratios are crucial for the company to maintain efficient working capital management and enhance overall financial performance.

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Long-term

Plexus Corp's long-term activity ratios indicate the efficiency with which the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has exhibited some fluctuation over the analyzed periods, reflecting the company's ability to generate sales relative to its investment in fixed assets. There was a general trend of increasing fixed asset turnover ratios from 2019 to 2022, indicating improving efficiency in utilizing fixed assets. However, there was a slight decline in 2023 compared to the previous year.

On the other hand, the total asset turnover ratio, which measures the company's ability to generate sales from all assets, has also shown variability but generally improving trends from 2019 to 2022 before stabilizing in 2023. This suggests that Plexus Corp has been effectively managing its total assets to generate revenue. Overall, the long-term activity ratios indicate that the company has been efficient in utilizing both fixed and total assets to generate sales, with some fluctuations in performance over the analyzed periods.