Sanmina Corporation (SANM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.71 | 5.68 | 5.71 | 5.37 | 3.62 | 3.40 | 3.26 | 3.32 | 5.06 | 6.03 | 7.26 | 8.26 | 7.74 | 7.47 | 7.31 | 7.72 | 8.66 | 8.49 | 8.36 | 7.41 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | 5.59 | 5.20 | 4.93 | 4.56 | 2.93 | 2.80 | 2.62 | 2.63 | 3.74 | 4.29 | 5.00 | 5.85 | 5.55 | 5.32 | 5.16 | 6.05 | 6.19 | 5.72 | 5.66 | 5.18 |
| Working capital turnover | 4.66 | 4.83 | 5.07 | 5.01 | — | 5.58 | 5.35 | 4.82 | 4.54 | 4.48 | 4.72 | 4.89 | 5.02 | 5.37 | 5.42 | 5.96 | 6.18 | 6.65 | 7.00 | 10.58 |
Sanmina Corporation's inventory turnover ratio has shown increasing trend over the analyzed periods, indicating that the company is efficiently managing its inventory levels and turning over its inventory more frequently. This can signify effective inventory management practices, timely production, and potentially decreasing carrying costs.
The payables turnover ratio has also exhibited an upward trend, implying that Sanmina Corporation is taking longer to pay its suppliers. This could indicate a strong bargaining position with suppliers and the ability to better manage cash flow by extending payment terms.
The working capital turnover ratio has fluctuated over the periods analyzed, showing some variability. This ratio measures how effectively the company is utilizing its working capital to generate sales revenue. A higher ratio suggests efficient utilization of working capital.
Overall, the activity ratios suggest that Sanmina Corporation is efficiently managing its inventory, paying its suppliers at a slower pace, and effectively using its working capital to generate sales revenue.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.91 | 64.28 | 63.98 | 68.03 | 100.71 | 107.51 | 111.92 | 109.90 | 72.14 | 60.53 | 50.25 | 44.17 | 47.15 | 48.86 | 49.91 | 47.31 | 42.14 | 43.01 | 43.68 | 49.23 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 65.32 | 70.18 | 74.06 | 80.13 | 124.69 | 130.32 | 139.12 | 138.91 | 97.51 | 85.11 | 72.95 | 62.36 | 65.78 | 68.64 | 70.72 | 60.33 | 58.94 | 63.85 | 64.45 | 70.40 |
The days of inventory on hand (DOH) for Sanmina Corporation have shown fluctuations over the recent quarters. In the most recent quarter, the company held inventory for approximately 63.91 days, which is slightly lower compared to the previous quarter. This indicates that the company is managing its inventory efficiently and turning over its inventory at a faster rate.
The days of sales outstanding (DSO) data is not available for all quarters, indicating incomplete information to assess the efficiency of the company in collecting its accounts receivable.
The number of days of payables for Sanmina Corporation has also varied over the quarters. In the most recent quarter, the company took approximately 65.32 days to pay its suppliers, which is lower compared to the previous quarter. This may suggest that the company is paying its suppliers more promptly, potentially improving its supplier relationships.
Overall, the company's activity ratios reflect some improvements in inventory management and payables turnover, although the data for accounts receivable collection is incomplete, making it challenging to provide a comprehensive analysis of the company's working capital efficiency.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 13.27 | 14.09 | 14.40 | 14.45 | 14.40 | 13.77 | 13.47 | 13.29 | 12.87 | 12.67 | 12.69 | 13.55 | 13.06 | 12.45 | 12.14 | 12.42 | 12.88 | 13.06 | 12.94 | 12.51 |
| Total asset turnover | 1.83 | 1.83 | 1.83 | 1.77 | 5.39 | 1.64 | 1.55 | 1.50 | 1.50 | 1.61 | 1.74 | 1.85 | 1.82 | 1.84 | 1.56 | 1.69 | 2.06 | 2.11 | 2.04 | 1.90 |
Sanmina Corporation's fixed asset turnover ratio has been relatively stable over the past five quarters, averaging around 13.5 times. This indicates that the company generates approximately $13.5 in sales for every $1 invested in fixed assets. The consistent high fixed asset turnover reflects efficient utilization of the company's fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has fluctuated more significantly, ranging from 1.50 in some quarters to as high as 5.39 in others. The lower total asset turnover ratios suggest that Sanmina Corporation may not be efficiently utilizing all its assets to generate sales. However, the spike in the total asset turnover ratio in certain quarters could indicate a period of exceptional sales relative to the level of total assets.
Overall, while the fixed asset turnover indicates efficient utilization of fixed assets, the total asset turnover fluctuates, suggesting varying levels of effectiveness in generating sales from total assets. Further analysis would be needed to understand the reasons behind the fluctuations in the total asset turnover ratio and whether there are specific areas where improvements can be made to enhance overall asset utilization efficiency.