Qualys Inc (QLYS)

Short-term

Turnover ratios

Based on the provided data, we can analyze Qualys Inc's activity ratios:

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects its outstanding receivables during a specific period.
- The trend for Qualys Inc's receivables turnover indicates a slight fluctuation over the past five years, with values ranging from 3.62 to 4.12.
- A higher receivables turnover ratio suggests that the company is collecting its receivables more quickly, indicating a better management of credit policies and efficient collection processes.

2. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers.
- Qualys Inc's payables turnover has shown significant variability over the years, with values ranging from 36.61 to 108.79.
- A higher payables turnover ratio indicates that the company is paying its suppliers more quickly, potentially signaling good relationships or taking advantage of discounts.

3. Working Capital Turnover:
- The working capital turnover ratio evaluates how effectively a company utilizes its working capital to generate sales.
- Qualys Inc's working capital turnover has fluctuated over the years, ranging from 1.65 to 4.04.
- An increasing trend in the working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales.

In conclusion, the analysis of Qualys Inc's activity ratios suggests that the company has been effectively managing its receivables, payables, and working capital turnover. The consistency and trends in these ratios provide insight into the company's operational efficiency and effectiveness in managing its working capital and relationships with customers and suppliers over the years.

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Average number of days

Days of Inventory on Hand (DOH):
Unfortunately, the data for Days of Inventory on Hand for Qualys Inc is not provided in the table. This ratio typically measures how many days it takes for a company to sell its entire inventory. It is calculated by dividing the average inventory by the cost of goods sold and then multiplying by 365 days.

Days of Sales Outstanding (DSO):
The Days of Sales Outstanding for Qualys Inc have shown a slight increase from 88.56 days in 2019 to 96.26 days in 2023. This ratio indicates the average number of days it takes for the company to collect payment after making a sale. An increasing trend in DSO may suggest that the company is taking longer to convert its sales into cash, which could potentially have implications for cash flow and liquidity.

Number of Days of Payables:
Qualys Inc has managed to decrease its Number of Days of Payables from 4.45 days in 2019 to 3.36 days in 2023. This ratio reflects the average number of days it takes for the company to pay its suppliers. A lower number of days of payables may indicate that the company is paying its suppliers more quickly, which could affect working capital management and cash flow.

Overall, it is important for Qualys Inc to closely monitor and manage these activity ratios to ensure efficient working capital management and optimize cash flows in the business operations.

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Long-term

Qualys Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency with which the company utilizes its assets to generate revenue.

The fixed asset turnover ratio has shown a consistent increasing trend over the past five years, indicating that Qualys has been able to generate more revenue from its fixed assets. This suggests that the company has efficiently utilized its long-term assets, such as property, plant, and equipment, to boost sales over time. The significant increase from 5.31 in 2019 to 17.01 in 2023 highlights a substantial improvement in asset efficiency.

On the other hand, the total asset turnover ratio, which reflects the overall efficiency of utilizing all assets (both current and fixed), has fluctuated slightly but remained relatively stable. The ratios have hovered around the 0.50 mark in recent years, indicating that Qualys has consistently generated about 50 cents of revenue for each dollar of total assets.

Overall, an increasing fixed asset turnover ratio coupled with a stable total asset turnover ratio suggests that Qualys has effectively managed and utilized its assets to generate revenue, particularly from its long-term assets. The company's ability to increase fixed asset turnover signifies improved operational efficiency and effectiveness in utilizing its long-term resources to drive sales growth.