Sanmina Corporation (SANM)

Short-term

Turnover ratios

Inventory turnover measures how efficiently a company manages its inventory. Sanmina Corporation's inventory turnover has fluctuated over the past five years, ranging from a high of 7.47 in 2020 to a low of 4.32 in 2022. The decreasing trend in inventory turnover may indicate challenges in managing inventory levels efficiently.

Receivables turnover ratio, which indicates how quickly a company collects its accounts receivable, is not provided in the data. Therefore, it is not possible to evaluate this aspect of Sanmina Corporation's liquidity management.

Payables turnover measures how efficiently a company pays its suppliers. The payables turnover ratio for Sanmina Corporation has shown fluctuation over the five years, with a high of 5.42 in 2023 and a low of 3.56 in 2022. A higher payables turnover ratio may suggest that the company is paying its suppliers more quickly.

Working capital turnover reflects how effectively a company utilizes its working capital to generate sales. Sanmina Corporation's working capital turnover has varied over the years, with a high of 5.56 in 2022 and a low of 3.92 in 2024. A decreasing trend in this ratio may indicate inefficiencies in utilizing working capital to drive sales.

In summary, while Sanmina Corporation has shown varying levels of efficiency in managing its inventory and payables turnover, the lack of data for receivables turnover makes it difficult to assess the overall efficiency of the company's liquidity management. Monitoring these activity ratios over time can provide insights into the company's operational efficiency and effectiveness in managing its working capital.

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Average number of days

Days of Inventory on Hand (DOH) for Sanmina Corporation have fluctuated over the past five years. In 2024, the company held inventory for an average of 73.24 days, which is higher compared to the previous year. This may indicate that the company is maintaining higher levels of inventory, which could tie up cash and increase holding costs.

Days of Sales Outstanding (DSO) data is missing from the table, so we are unable to analyze the efficiency of Sanmina Corporation in collecting its accounts receivable.

The Number of Days of Payables for Sanmina Corporation has shown some variability over the years. In 2024, the company took an average of 73.16 days to pay its suppliers. This suggests that the company may be managing its payables efficiently by taking advantage of payment terms to preserve cash flow.

Overall, analyzing these activity ratios together can provide insights into how effectively Sanmina Corporation is managing its working capital and operations efficiency. Further comparison with industry benchmarks would help provide a more comprehensive assessment.

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Long-term

The fixed asset turnover ratio measures how effectively a company is generating revenue from its fixed assets. Sanmina Corporation's fixed asset turnover has shown a decreasing trend over the past five years, dropping from 14.06 in 2023 to 12.28 in 2024. This decline may indicate that the company is becoming less efficient in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects Sanmina Corporation's ability to generate revenue from all its assets. The trend in total asset turnover has been fluctuating over the same period, with a decrease from 1.83 in 2023 to 1.57 in 2024. This ratio indicates that the company is generating less revenue per dollar of total assets compared to previous years.

Overall, the declining trends in both fixed asset turnover and total asset turnover ratios suggest that Sanmina Corporation may be facing challenges in efficiently utilizing its assets to generate sales revenue. Further analysis and investigation into the company's operational efficiency and asset management practices may be necessary to address these downward trends.