Somnigroup International Inc. (SGI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.15 | 5.49 | 5.36 | 5.65 | 5.79 | 5.84 | 5.43 | 5.05 | 5.17 | 4.89 | 4.79 | 5.00 | 5.98 | 6.73 | 7.43 | 6.77 | 6.53 | 7.08 | 6.99 | 6.66 |
| Receivables turnover | — | — | — | — | — | — | 10.39 | 10.60 | 11.65 | 10.43 | 10.73 | 12.02 | 11.75 | 9.07 | 9.52 | 9.81 | 9.58 | 7.92 | 9.30 | 8.68 |
| Payables turnover | — | — | — | — | — | — | 7.93 | 7.78 | 7.98 | 6.65 | 6.86 | 6.28 | 6.42 | 5.59 | 6.95 | 7.75 | 6.29 | 5.90 | 7.32 | 6.86 |
| Working capital turnover | 46.92 | 34.10 | 23.89 | 24.09 | 25.26 | 26.18 | 20.00 | 19.73 | 23.00 | 25.66 | 20.83 | 43.56 | 22.19 | 14.31 | 65.31 | 12.24 | — | 28.76 | — | 10.94 |
Inventory Turnover:
The inventory turnover ratio measures how efficiently Somnigroup International Inc. manages its inventory. From March 31, 2020, to December 31, 2024, the company's inventory turnover ratio experienced fluctuations. It ranged from a peak of 7.43 on June 30, 2021, to a low of 4.79 on June 30, 2022. Overall, the trend shows a decline in recent periods, indicating a potential inefficiency in managing inventory.
Receivables Turnover:
The receivables turnover ratio reflects how well the company collects payments from its customers. Somnigroup International Inc. witnessed an increasing trend in its receivables turnover ratio from March 31, 2020, to December 31, 2022. The ratio peaked at 12.02 on March 31, 2022. However, from March 31, 2023, the data is missing, which makes it challenging to assess the recent trend accurately.
Payables Turnover:
The payables turnover ratio highlights how efficiently the company pays off its suppliers. Somnigroup International Inc.'s payables turnover ratio experienced fluctuations over the period studied. It ranged from a low of 5.59 on September 30, 2021, to a high of 7.98 on December 31, 2022. However, similar to receivables turnover, the data becomes unavailable from March 31, 2023, making it unclear how the company has managed its payables in recent periods.
Working Capital Turnover:
The working capital turnover ratio gauges how efficiently Somnigroup International Inc. utilizes its working capital to generate sales. The company had varying working capital turnover ratios over the period analyzed. It exhibited significant fluctuations, with a peak of 65.31 on June 30, 2021, and a low of 10.94 on March 31, 2020. The trend shows inconsistency in utilizing working capital efficiently, with periods of both high and low turnover ratios.
In general, the company's inventory turnover has been declining, the receivables and payables turnover have shown fluctuations, and the working capital turnover has displayed significant variations, indicating the need for closer monitoring and potential improvement in managing these activity ratios to enhance operational efficiency.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 59.31 | 66.49 | 68.16 | 64.62 | 63.05 | 62.46 | 67.17 | 72.25 | 70.54 | 74.66 | 76.15 | 73.07 | 61.08 | 54.27 | 49.11 | 53.92 | 55.88 | 51.54 | 52.19 | 54.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | 35.12 | 34.45 | 31.34 | 34.99 | 34.01 | 30.36 | 31.05 | 40.24 | 38.35 | 37.21 | 38.09 | 46.09 | 39.23 | 42.03 |
| Number of days of payables | days | — | — | — | — | — | — | 46.02 | 46.93 | 45.73 | 54.87 | 53.21 | 58.11 | 56.88 | 65.34 | 52.52 | 47.12 | 58.03 | 61.89 | 49.83 | 53.21 |
Somnigroup International Inc.'s activity ratios reveal insights into its operational efficiency and management of working capital.
1. Days of Inventory on Hand (DOH): The trend in DOH indicates how long, on average, the company holds inventory before selling it. Somnigroup's DOH fluctuated over the years, ranging from 49.11 days to 76.15 days. The increase in DOH from 2022 to 2024 (from 58.11 days to 68.16 days) might suggest potential issues such as overstocking or slowing sales.
2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect payment after a sale is made. The DSO for Somnigroup ranged between 30.36 days and 46.09 days. The decreasing trend from 2020 to 2021 (from 46.09 days to 31.05 days) indicates an improvement in the collection of receivables, which is a positive sign.
3. Number of Days of Payables: This ratio demonstrates the number of days the company takes to pay its suppliers. Somnigroup's payables days varied from 45.73 days to 65.34 days. The stable payables days in recent years may indicate consistent supplier payment practices, but a sudden increase or decrease could signify changes in negotiation terms or financial distress.
By analyzing these activity ratios, we can assess Somnigroup's effectiveness in managing inventory, collecting receivables, and paying suppliers. Monitoring these metrics over time can help identify potential operational inefficiencies or improvements that may impact the company's financial health and performance.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 5.82 | 5.94 | 6.81 | 7.00 | 7.68 | 8.20 | 9.51 | 9.40 | 9.62 | 8.67 | 7.24 | 8.26 | 6.87 | 7.03 |
| Total asset turnover | 0.82 | 1.07 | 1.06 | 1.07 | 1.08 | 1.09 | 1.08 | 1.08 | 1.13 | 1.17 | 1.17 | 1.19 | 1.14 | 1.04 | 1.34 | 1.10 | 1.11 | 1.01 | 0.99 | 0.98 |
Somnigroup International Inc.'s Fixed Asset Turnover ratio has shown fluctuations over the years. It increased from 7.03 in March 2020 to a peak of 9.62 in June 2021, indicating that the company generated $9.62 in revenue for every dollar invested in fixed assets. However, the ratio declined thereafter to 5.82 in June 2023 and further to 6.81 in December 2022.
On the other hand, the Total Asset Turnover ratio displays a different trend. It started at 0.98 in March 2020 and showed an upward trend, reaching a peak of 1.34 in June 2021, before stabilizing around 1.07 to 1.13 from December 2022 to March 2024.
Overall, the Fixed Asset Turnover ratio tends to be more volatile compared to the Total Asset Turnover ratio. A high Fixed Asset Turnover ratio signifies efficient utilization of fixed assets to generate revenue, while a high Total Asset Turnover ratio indicates effective overall asset utilization to generate sales. Investors and analysts should monitor these ratios closely to assess the company's efficiency in generating revenue relative to its assets.