ScanSource Inc (SCSC)
Activity ratios
Short-term
Turnover ratios
| Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.18 | 6.36 | 6.05 | 5.48 | 4.82 | 4.87 | 4.76 | 5.17 | 5.54 | 5.59 | 5.69 | 6.41 | 6.57 | 5.58 | 6.46 | 6.84 | 6.87 | 5.64 | 5.07 | 5.33 |
| Receivables turnover | 4.87 | 5.86 | 5.41 | 5.34 | 4.56 | 5.53 | 4.81 | 4.84 | 4.40 | 5.31 | 5.38 | 5.50 | 4.89 | 4.88 | 4.92 | 5.50 | 6.11 | 6.16 | 5.94 | 5.51 |
| Payables turnover | 5.39 | 6.06 | 6.44 | 5.82 | 5.29 | 5.59 | 4.85 | 4.91 | 4.77 | 4.68 | 4.90 | 5.25 | 4.87 | 4.92 | 4.62 | 5.31 | 6.88 | 6.18 | 5.59 | 5.81 |
| Working capital turnover | 4.45 | 4.47 | 4.51 | 4.58 | 4.33 | 4.54 | 4.25 | 4.54 | 4.96 | 5.62 | 5.61 | 5.75 | 6.46 | 5.02 | 6.12 | 6.78 | 6.30 | 5.73 | 5.42 | 5.23 |
ScanSource Inc's activity ratios show the efficiency with which the company manages its inventory, receivables, payables, and working capital.
- Inventory turnover has been consistently around 5 to 7 times per year, indicating that ScanSource effectively sells and replenishes its inventory.
- Receivables turnover has varied but generally ranges between 4.5 to 6 times per year, showing that the company collects its accounts receivable efficiently.
- Payables turnover has also fluctuated but typically hovers between 4.5 to 6.5 times annually, suggesting that ScanSource manages its payments to suppliers effectively.
- Working capital turnover has shown stability and improvement over time, ranging from around 4 to 6.8 times per year, indicating the company's ability to generate revenue relative to its working capital.
Overall, ScanSource Inc appears to have a solid performance in managing its operational activities efficiently, as indicated by its consistent and generally improving activity ratios across different reporting periods.
Average number of days
| Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.02 | 57.38 | 60.28 | 66.60 | 75.70 | 74.91 | 76.62 | 70.67 | 65.83 | 65.35 | 64.13 | 56.97 | 55.52 | 65.39 | 56.47 | 53.34 | 53.11 | 64.71 | 72.06 | 68.51 |
| Days of sales outstanding (DSO) | days | 74.96 | 62.28 | 67.46 | 68.30 | 80.04 | 66.02 | 75.90 | 75.41 | 82.88 | 68.70 | 67.89 | 66.35 | 74.57 | 74.75 | 74.26 | 66.34 | 59.71 | 59.21 | 61.41 | 66.26 |
| Number of days of payables | days | 67.69 | 60.26 | 56.67 | 62.69 | 69.06 | 65.35 | 75.29 | 74.34 | 76.47 | 78.05 | 74.48 | 69.52 | 74.98 | 74.20 | 79.05 | 68.69 | 53.03 | 59.08 | 65.26 | 62.85 |
ScanSource Inc's activity ratios provide insights into the efficiency of the company's working capital management.
1. Days of Inventory on Hand (DOH): The DOH ratio has been fluctuating over the periods, ranging from around 53 to 77 days. As of June 30, 2024, the company held inventory for approximately 59 days before it was sold. The trend shows some improvement in inventory management efficiency compared to previous quarters.
2. Days of Sales Outstanding (DSO): The DSO ratio reflects the average number of days it takes for the company to collect payment after making a sale. As of June 30, 2024, ScanSource Inc's DSO stood at around 75 days. This indicates a slight increase in the collection period compared to the previous quarter but an improvement compared to earlier periods.
3. Number of Days of Payables: The number of days of payables provides insight into how long the company takes to pay its suppliers. As of June 30, 2024, ScanSource Inc took around 68 days to pay its outstanding payables. This ratio has been relatively consistent over the periods analyzed.
Overall, ScanSource Inc's activity ratios suggest a need for continued monitoring of inventory levels, collection processes, and payment schedules to enhance working capital efficiency. The company should aim to strike a balance between reducing inventory days, improving collection times, and managing payable days effectively to optimize its cash flow and working capital management.
Long-term
| Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 97.66 | 97.12 | 98.12 | 100.59 | 100.75 | 103.71 | 102.45 | 97.84 | 93.96 | 90.25 | 84.02 | 79.56 | 73.37 | 54.89 | 54.54 | 53.67 | 54.87 | 62.64 | 62.23 | 61.47 |
| Total asset turnover | 1.84 | 1.94 | 2.01 | 1.95 | 1.82 | 1.91 | 1.76 | 1.80 | 1.82 | 1.85 | 1.86 | 1.91 | 1.88 | 1.57 | 1.65 | 1.62 | 1.80 | 1.84 | 1.74 | 1.75 |
ScanSource Inc's fixed asset turnover ratio has remained relatively stable over the past few quarters, ranging from around 73.37 to 103.71. This indicates that the company is generating significant revenue relative to its investment in fixed assets. The higher the turnover ratio, the more efficiently the company is utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has fluctuated more, ranging from around 1.57 to 2.01. This ratio reflects how efficiently the company is using all its assets to generate revenue. Despite the fluctuations, the total asset turnover ratio has generally remained above 1.5, indicating that ScanSource Inc is effectively using its total assets to generate sales.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that ScanSource Inc is efficiently utilizing its assets to generate revenue, with the fixed asset turnover ratio indicating a particularly strong performance in generating sales relative to its investment in fixed assets.