Quidel Corporation (QDEL)

Short-term

Turnover ratios

Quidel Corporation's inventory turnover ratio indicates how efficiently the company manages its inventory. The data shows that the inventory turnover ratio fluctuated over the period, ranging from 2.15 in 2021 to 2.96 in 2023. The ratio improved in 2023, indicating that the company was able to sell its inventory more frequently during that year.

The receivables turnover ratio, which measures how efficiently the company collects on its credit sales, is not provided in the data. This suggests that the company may not have significant accounts receivable or that the information was not available for analysis.

Similarly, the payables turnover ratio, which assesses how quickly the company pays its suppliers, is not provided. Without this information, it is challenging to evaluate the company's payment practices and relationship with its suppliers.

The working capital turnover ratio reflects how effectively the company utilizes its working capital to generate revenue. Quidel Corporation's working capital turnover improved significantly from 2019 to 2024, with a notable increase from 5.75 in 2022 to 12.64 in 2024. This indicates that the company was able to generate more revenue relative to its working capital in those years, showcasing improved operational efficiency.

Overall, while Quidel Corporation showed improvements in its inventory turnover and working capital turnover ratios, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Quidel Corporation's activity ratios provide insights into the efficiency of its operations in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH):
- Quidel's DOH has shown fluctuations over the years, ranging from 123.32 days to 169.64 days.
- A higher DOH indicates that the company is holding onto inventory for a longer period, potentially tying up capital and increasing carrying costs.
- The trend in Quidel's DOH suggests some variability in inventory management efficiency, with a potential impact on liquidity and profitability.

2. Days of Sales Outstanding (DSO):
- The DSO data is missing for all years, which indicates a lack of information on how quickly Quidel is collecting receivables from customers.
- Monitoring DSO is crucial as a high DSO could signify difficulties in collecting payments and potential cash flow challenges.

3. Number of Days of Payables:
- Similar to DSO, data for the number of days of payables is not provided for any year, making it challenging to assess how long Quidel takes to pay its suppliers.
- Managing payables effectively can impact cash flow and relationships with suppliers.

In conclusion, while the Days of Inventory on Hand data indicates some variability in inventory management efficiency, the lack of information on DSO and payables makes it difficult to comprehensively evaluate Quidel's overall activity ratios and the efficiency of its working capital management.

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Long-term

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. Quidel Corporation's fixed asset turnover has shown a declining trend over the years, starting at 15.04 in 2020 and dropping to 4.86 in 2021 and further decreasing to 2.15 in 2022. The absence of data for 2023 and 2024 suggests possible issues with the company's reporting or a decrease in the use of fixed assets to generate sales.

Total asset turnover reflects how well a company uses its total assets to generate sales. Quidel Corporation's total asset turnover has also been on a downward trajectory, declining from 0.89 in 2020 to 0.70 in 2021, 0.37 in 2022, and further down to 0.35 in 2023, before showing a slight increase to 0.43 in 2024. This continuous decline may indicate inefficiencies in asset utilization or a decrease in revenue generation relative to the size of the asset base.

In conclusion, the decreasing trends in both fixed asset turnover and total asset turnover ratios for Quidel Corporation indicate challenges in efficiently utilizing its assets to drive revenue generation. This could potentially signal operational inefficiencies or changes in business strategy that may warrant further investigation and strategic review to improve the company's long-term financial performance.