Proto Labs Inc (PRLB)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	32.40	31.89	30.41	30.52	31.64	29.05	28.40	29.26	31.17	39.91	40.06	35.49	31.38	32.90	32.33	33.60	34.72	37.10	35.67	36.12
Receivables turnover	5.90	6.24	6.40	6.25	6.08	6.09	5.87	5.72	5.99	5.38	5.13	5.70	7.44	7.20	7.35	7.41	7.98	6.87	7.00	7.01
Payables turnover	28.30	24.56	26.42	21.94	24.76	25.14	27.33	23.77	16.17	17.23	14.02	16.11	18.68	22.15	19.84	19.37	20.82	18.78	16.28	20.27
Working capital turnover	3.33	3.81	4.08	4.44	4.25	3.77	3.79	3.87	3.79	4.05	4.30	4.41	2.27	2.46	2.79	2.79	2.43	2.63	2.73	2.80

Proto Labs Inc's inventory turnover has been consistently high, averaging around 19-20 times a year over the past 8 quarters. This indicates that the company efficiently manages its inventory levels, quickly selling and replenishing its stock.

The receivables turnover ratio has also been relatively stable, ranging from 5.73 to 6.71. This suggests that Proto Labs Inc has been effective in collecting payments from its customers, with an average collection period of around 54-64 days.

The payables turnover ratio has shown some variability, but generally, Proto Labs Inc takes around 15-18 days to pay its suppliers. A higher payables turnover ratio indicates that the company is taking longer to pay its bills, potentially benefiting from favorable credit terms.

The working capital turnover ratio has fluctuated slightly but has maintained an average of around 3.75-4.25. This ratio reflects how efficiently the company utilizes its working capital to generate revenue. A higher ratio indicates that Proto Labs Inc is effectively using its resources to drive sales.

Overall, based on the activity ratios, Proto Labs Inc appears to have good inventory management practices, efficient collection of receivables, and effective utilization of working capital, while also managing its payables effectively.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	11.27	11.44	12.00	11.96	11.53	12.56	12.85	12.48	11.71	9.15	9.11	10.29	11.63	11.09	11.29	10.86	10.51	9.84	10.23	10.11
Days of sales outstanding (DSO)	days	61.83	58.54	57.08	58.43	59.99	59.92	62.20	63.83	60.91	67.89	71.09	64.05	49.09	50.70	49.68	49.23	45.71	53.15	52.17	52.07
Number of days of payables	days	12.90	14.86	13.82	16.64	14.74	14.52	13.36	15.35	22.57	21.19	26.04	22.66	19.54	16.48	18.40	18.84	17.54	19.44	22.42	18.01

To analyze Proto Labs Inc's activity ratios, we will focus on three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- DOH measures how many days, on average, Proto Labs holds inventory before selling it. A lower DOH indicates a more efficient inventory management system.
- The trend in DOH for Proto Labs shows some fluctuation over the quarters but generally remains within the range of 17 to 19 days. This suggests that the company maintains a lean inventory management approach.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for Proto Labs to collect revenue after making a sale. A lower DSO is preferable as it indicates better cash flow management.
- The DSO for Proto Labs has shown variability across quarters, ranging from around 54 to 63 days. Generally, the company has been successful in keeping DSO below 60 days, indicating efficient accounts receivable collection processes.

3. Number of Days of Payables:
- This metric shows how long Proto Labs takes to pay its bills to suppliers. A higher number of days indicates that the company may be taking longer to pay its obligations, potentially improving cash flow.
- The trend in the number of days of payables for Proto Labs has ranged from around 20 to 26 days. A higher number of days in payables suggests that the company may be effectively managing its working capital by delaying payments to suppliers.

Overall, Proto Labs appears to be effectively managing its inventory, accounts receivable, and payables. The company's ability to maintain relatively low DOH and DSO metrics while potentially optimizing its payables demonstrates sound working capital management practices.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	1.98	2.03	1.95	1.93	1.89	1.91	1.92	1.83	1.74	1.66	1.57	1.56	1.54	1.56	1.60	1.72	1.74	1.82	1.84	1.93
Total asset turnover	0.65	0.63	0.62	0.62	0.61	0.55	0.54	0.53	0.53	0.51	0.48	0.47	0.58	0.61	0.65	0.68	0.68	0.70	0.71	0.73

Proto Labs Inc's fixed asset turnover has been relatively stable over the past eight quarters, ranging from 1.89 to 2.03. This ratio indicates that the company generates approximately $2 of revenue for every $1 invested in fixed assets.

On the other hand, the total asset turnover has also shown consistency, fluctuating between 0.53 and 0.65. This ratio suggests that Proto Labs Inc generates between $0.53 and $0.65 in revenue for every $1 in total assets.

Overall, both the fixed asset turnover and total asset turnover ratios indicate that Proto Labs Inc efficiently utilizes its assets to generate revenue, with a slightly better performance in terms of fixed assets turnover.