Quidel Corporation (QDEL)

Short-term

Turnover ratios

The inventory turnover ratio for Quidel Corporation has shown some fluctuations over the past few years, ranging from a low of 1.49 to a high of 3.69. A higher inventory turnover ratio indicates that the company is selling its inventory quickly, which can be a positive sign of efficient inventory management. However, the ratio has been somewhat inconsistent over the period examined.

On the other hand, the receivables turnover and payables turnover ratios for Quidel Corporation are not available, as indicated by the absence of data for these ratios. This lack of information limits our ability to assess the efficiency of the company in collecting receivables and managing payables.

The working capital turnover ratio, which measures how efficiently a company is utilizing its working capital to generate sales, has shown an increasing trend for Quidel Corporation over the years. The ratio has consistently risen from 3.74 to 12.63, indicating the company's improving ability to generate sales relative to its working capital.

In conclusion, while Quidel Corporation's inventory turnover ratio has been somewhat volatile, the increasing trend in the working capital turnover ratio suggests an improvement in the company's overall performance in utilizing its working capital efficiently to drive sales.

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Average number of days

Based on the provided data, let's analyze the activity ratios of Quidel Corporation:

1. Days of Inventory on Hand (DOH):
- Quidel Corporation's DOH has fluctuated over the periods analyzed.
- The company maintained relatively high levels of inventory on hand, with an average DOH of around 150 days.
- There was a significant spike in DOH during the second quarter of 2022, reaching 245.40 days, indicating potential inventory management challenges.
- However, Quidel managed to reduce its DOH in subsequent quarters, reaching a more reasonable level of around 130 days by the end of 2023 and into 2024.
- Overall, Quidel's inventory management improved after the peak in the second quarter of 2022, suggesting better control over inventory levels.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO), preventing a detailed analysis of this metric for Quidel Corporation.
- DSO is a crucial ratio that indicates how quickly a company collects its accounts receivable, reflecting its efficiency in managing credit sales.
- Without the DSO data, it is challenging to assess Quidel's effectiveness in collecting receivables and its overall working capital management.

3. Number of Days of Payables:
- Similar to DSO, the data does not include information on the Number of Days of Payables for Quidel Corporation.
- Days of Payables measures how long a company takes to pay its suppliers, impacting its cash flow and relationships with vendors.
- Without this data, it is difficult to evaluate Quidel's payment practices and their effect on working capital management.

In conclusion, based on the available information, Quidel Corporation has shown fluctuations in its Days of Inventory on Hand (DOH), indicating varying levels of inventory management efficiency. However, the lack of data on Days of Sales Outstanding (DSO) and Number of Days of Payables hinders a comprehensive assessment of the company's overall activity ratios and working capital management.

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Long-term

The fixed asset turnover ratio for Quidel Corporation has shown fluctuations over the years, ranging from a high of 15.04 in December 2020 to a low of 2.02 in March 2023. This ratio indicates how effectively the company is utilizing its fixed assets to generate sales. Generally, a higher fixed asset turnover ratio is preferred as it suggests that the company is efficiently using its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also exhibited variability, with values ranging from 0.31 in June 2022 to 1.02 in June 2021. The total asset turnover ratio measures how efficiently the company is utilizing all its assets to generate sales. A higher total asset turnover ratio indicates that the company is generating more sales relative to its total assets.

Overall, fluctuations in both the fixed asset turnover and total asset turnover ratios for Quidel Corporation suggest changes in the efficiency of the company's asset utilization over time. Further analysis and comparison with industry benchmarks would be needed to assess the company's performance in this regard.