Repligen Corporation (RGEN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.16 | 2.57 | 2.72 | 3.19 | 4.30 |
| Receivables turnover | 5.03 | 6.89 | 5.60 | 4.96 | 5.85 |
| Payables turnover | 32.72 | 22.23 | 13.86 | 17.97 | 20.62 |
| Working capital turnover | 0.66 | 1.35 | 1.18 | 0.61 | 0.43 |
Repligen Corp.'s activity ratios provide insights into the efficiency of the company's management of its assets and liabilities.
1. Inventory Turnover:
- Repligen's inventory turnover has been fluctuating over the years, with a decreasing trend from 2019 to 2022 and a slight increase in 2023.
- A lower inventory turnover may indicate potential issues with inventory management efficiency or decreased sales.
- The increase in 2023 could suggest improved inventory management or increasing sales.
2. Receivables Turnover:
- Repligen's receivables turnover has also been varying, showing a peak in 2022 and fluctuating levels in other years.
- A higher receivables turnover indicates that the company is efficient in collecting its accounts receivable.
- The decline in 2023 compared to 2022 could indicate changes in credit policies or customer payment behavior.
3. Payables Turnover:
- Repligen's payables turnover has been increasing over the years, indicating a faster rate of paying off its suppliers.
- A higher payables turnover could suggest good relationships with suppliers or negotiating favorable credit terms.
4. Working Capital Turnover:
- The working capital turnover ratio shows the efficiency of Repligen in utilizing its working capital to generate sales.
- The trend has been fluctuating, with a substantial decrease in 2021 and a rebound in 2022.
- A higher ratio indicates better utilization of working capital to generate sales.
In summary, Repligen Corp.'s activity ratios reflect fluctuations in efficiency over the years. Management may need to focus on improving inventory turnover and maintaining efficient receivables turnover while continuing to manage payables effectively and optimize working capital turnover.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 115.36 | 141.96 | 134.25 | 114.35 | 84.95 |
| Days of sales outstanding (DSO) | days | 72.61 | 52.99 | 65.15 | 73.58 | 62.44 |
| Number of days of payables | days | 11.15 | 16.42 | 26.34 | 20.31 | 17.70 |
Analyzing Repligen Corp.'s activity ratios over the past five years provides valuable insights into the company's efficiency in managing its inventory, sales, and payables.
1. Days of Inventory on Hand (DOH):
- Repligen Corp.'s DOH has shown fluctuations over the years, ranging from 168.04 days in 2019 to 251.49 days in 2022.
- A high DOH indicates that the company holds inventory for an extended period before selling, which may tie up capital and increase carrying costs.
- The decreasing trend in DOH from 2022 to 2023 (251.49 to 208.65 days) suggests an improvement in inventory management efficiency, as the company is now holding inventory for fewer days before selling.
2. Days of Sales Outstanding (DSO):
- The DSO for Repligen Corp. has fluctuated over the years, ranging from 52.94 days in 2022 to 71.14 days in 2020.
- A lower DSO indicates a faster collection of receivables, which improves cash flow and liquidity for the company.
- The decrease in DSO from 2022 to 2023 (52.94 to 70.95 days) suggests a potential slowdown in the collection of sales, impacting the company's cash flow.
3. Number of Days of Payables:
- Repligen Corp.'s days of payables have ranged from 20.18 days in 2023 to 47.31 days in 2021.
- A lower number of days of payables indicates a quicker settlement of payables, which could strain the company's cash flow.
- The decreasing trend in the number of days of payables from 2021 to 2023 (47.31 to 20.18 days) indicates that the company is now settling its payables more quickly, potentially impacting its liquidity position.
In conclusion, Repligen Corp. has shown both strengths and areas for improvement in managing its inventory, sales, and payables over the past five years. The company's recent focus on reducing inventory holding periods and increasing the speed of payables settlement could positively impact its overall operational efficiency and financial performance in the future.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 3.01 | 4.20 | 5.26 | 5.30 | 5.27 |
| Total asset turnover | 0.22 | 0.32 | 0.28 | 0.19 | 0.18 |
Repligen Corp.'s fixed asset turnover has shown a declining trend over the past five years, decreasing from 5.58 in 2019 to 3.08 in 2023. This indicates that the company is generating less revenue relative to its investment in fixed assets each year. The decreasing trend may suggest inefficiencies in the utilization of fixed assets or a slowdown in the company's sales growth.
On the other hand, the total asset turnover ratio has been more volatile but generally low, ranging from 0.19 in 2019 and 2020 to 0.32 in 2022. The ratio decreased to 0.23 in 2023, indicating that the company is generating less revenue relative to its total assets. This could suggest that Repligen Corp. may not be efficiently utilizing its total asset base to generate sales.
Overall, based on the long-term activity ratios, Repligen Corp. may need to assess its asset utilization efficiency and consider strategies to improve the turnover of both fixed and total assets to enhance its revenue generation capabilities and overall operational performance.