Somnigroup International Inc. (SGI)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019
Inventory turnover 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 6.77
Receivables turnover 10.47 10.28 10.15 10.80 9.40 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 8.35
Payables turnover 7.85 7.69 8.01 8.98 7.84 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 7.01
Working capital turnover 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 24.48

Somnigroup International Inc.'s activity ratios provide insights into how effectively the company manages its assets and liabilities.

1. Inventory Turnover: The company's inventory turnover has shown a decreasing trend from 6.77 in December 2019 to 5.49 in September 2024. This indicates that the company is holding onto its inventory for a longer period, which may lead to higher holding costs and potential obsolescence.

2. Receivables Turnover: Somnigroup's receivables turnover has been fluctuating over the years but generally maintaining a healthy level, ranging from 7.92 to 12.02. This suggests that the company efficiently collects payments from its customers, reducing the risk of bad debts.

3. Payables Turnover: The payables turnover ratio has been relatively stable, indicating that the company is effectively managing its accounts payable. The ratio has ranged from 5.59 to 8.98, showing that the company is able to meet its short-term obligations.

4. Working Capital Turnover: The working capital turnover ratio has shown variability, with significant fluctuations in some periods (e.g., 65.31 in June 2021). This ratio measures how efficiently the company is using its working capital to generate sales. A higher turnover ratio indicates effective utilization of working capital.

Overall, these activity ratios provide valuable insights into Somnigroup International Inc.'s operational efficiency and effectiveness in managing its assets and liabilities over the analyzed periods.

Average number of days

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 Dec 31, 2019
Days of inventory on hand (DOH) days 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 53.91
Days of sales outstanding (DSO) days 34.88 35.52 35.97 33.81 38.83 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 43.72
Number of days of payables days 46.47 47.46 45.56 40.63 46.53 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 52.09

Based on the provided data, we can analyze the activity ratios of Somnigroup International Inc. as follows:

1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes for the company to sell its inventory. The trend for DOH shows some fluctuations over the periods, ranging from a low of around 49 days to a high of about 76 days. A decreasing trend in DOH is generally favorable as it suggests efficient inventory management, while an increasing trend could indicate 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 its accounts receivable. The DSO for Somnigroup International Inc. fluctuates within a range between approximately 30 to 46 days over the periods. A lower DSO is preferable as it signifies faster cash collection from sales, indicating strong liquidity and efficient credit management.

3. Number of Days of Payables: This ratio reflects the average number of days it takes for the company to pay its suppliers. The trend in the number of days of payables ranges from about 40 to 65 days. A higher number of days of payables could suggest that the company is taking longer to settle its obligations, potentially benefiting from favorable credit terms, although it may strain supplier relationships if excessively extended.

Overall, analyzing these activity ratios provides insights into Somnigroup International Inc.'s efficiency in managing its inventory, collecting receivables, and paying suppliers. Monitoring these ratios over time can help assess the company's operational performance and financial health.

Long-term

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 Dec 31, 2019
Fixed asset turnover 5.80 5.61 5.60 6.17 5.82 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 7.13
Total asset turnover 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 1.01

Somnigroup International Inc.'s fixed asset turnover ratio has shown a decreasing trend over the past few years, indicating that the efficiency of utilizing fixed assets to generate revenue has slightly declined. However, the ratio has fluctuated within a relatively narrow range, with the ratio ranging from 5.82 to 9.62 during the period analyzed.

On the other hand, the total asset turnover ratio has also displayed some fluctuations but generally maintained a stable performance. There was an initial decrease from 1.01 to 0.98 in the period from December 2019 to March 2020, followed by a gradual increase and subsequent variations. Notably, the ratio reached a peak of 1.34 in June 2021 before slightly declining in the subsequent periods.

These ratios suggest that while the company's utilization of total assets to generate sales improved at a more consistent rate compared to fixed assets, there are some fluctuations that may warrant further investigation into the company's asset management strategies to maintain or enhance operational efficiency.