Simulations Plus Inc (SLP)

Short-term

Turnover ratios

Simulations Plus Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales and cash flow.

- Inventory turnover: This ratio indicates how many times a company sells and replaces its inventory during a period. Simulations Plus Inc's inventory turnover has fluctuated significantly over the analyzed periods, ranging from a low of 7.78 to a high of 367.86. The company shows varying degrees of efficiency in managing its inventory levels.

- Receivables turnover: This ratio reveals how quickly a company collects its accounts receivable. Simulations Plus Inc's receivables turnover has generally been consistent over the periods, ranging from 2.80 to 7.90. The company maintains a moderate level of efficiency in collecting its outstanding receivables.

- Payables turnover: This ratio measures how efficiently a company manages its accounts payable. Simulations Plus Inc's payables turnover has shown significant fluctuations, indicating varying levels of efficiency in managing its payment obligations, with a range from 15.48 to 574.89.

- Working capital turnover: This ratio evaluates how effectively a company utilizes its working capital to generate sales. Simulations Plus Inc's working capital turnover has exhibited fluctuating trends, demonstrating differing levels of efficiency in utilizing its working capital to drive revenue, with values ranging from 0.34 to 2.78.

In conclusion, Simulations Plus Inc's activity ratios highlight mixed levels of efficiency in managing inventory, receivables, payables, and working capital over the analyzed periods, indicating areas where the company could potentially improve its operational effectiveness.

---

Average number of days

The Days of Inventory on Hand (DOH) for Simulations Plus Inc has fluctuated over the periods analyzed, ranging from as low as 0.99 days to as high as 46.92 days. This indicates varying efficiency in managing inventory levels and turnover. The company seems to have made efforts to reduce inventory holding periods, as shown by the decreasing trend in recent periods.

In terms of Days of Sales Outstanding (DSO), the company's collection period has also been inconsistent, ranging from 46.19 days to 130.43 days. Higher DSO values suggest that the company may be facing challenges in collecting payments from customers efficiently. However, there appears to be a decreasing trend in DSO over the periods, indicating improvements in receivables management.

The Number of Days of Payables reflects how quickly Simulations Plus pays its suppliers. The company has maintained a relatively stable range for this ratio, with values fluctuating between 0.63 days and 14.23 days. A lower number of days of payables suggests a faster payment cycle, potentially indicating strong supplier relationships and favorable credit terms.

Overall, the company's activity ratios reflect fluctuations but also show potential improvements in managing inventory levels, collecting payments from customers, and paying suppliers in a timely manner. Continued monitoring and analysis of these ratios will be essential for evaluating the company's operational efficiency and effectiveness in managing working capital.

---

Long-term

The fixed asset turnover ratio for Simulations Plus Inc has shown some fluctuations over the past few quarters, ranging from a low of 20.60 to a high of 127.54. This ratio indicates the efficiency of the company in generating sales revenue from its investment in fixed assets. Generally, a higher fixed asset turnover ratio is more favorable as it suggests that the company is effectively utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also exhibited variability over the same period, with values ranging from 0.25 to 1.12. This ratio provides insight into how well the company is utilizing all of its assets to generate sales. A higher total asset turnover ratio signifies that the company is efficiently utilizing its assets to generate revenue.

Overall, the trend in both the fixed asset turnover and total asset turnover ratios for Simulations Plus Inc suggests some level of variability in the efficiency of asset utilization. Further analysis and comparison with industry benchmarks may help in understanding the company's performance in this aspect.