Simulations Plus Inc (SLP)

Activity ratios

Short-term

Turnover ratios

Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020 May 31, 2020 Feb 29, 2020 Nov 30, 2019 Aug 31, 2019 May 31, 2019
Inventory turnover — 367.86 14.47 — 26.52 10.82 7.78 33.94 24.15 18.70 10.47 21.32 8.55 18.64 10.98 26.19 21.72 108.80 11.79 —
Receivables turnover 4.93 6.00 5.84 5.45 4.77 4.57 3.91 2.80 3.31 4.08 4.72 3.56 4.04 5.85 5.60 3.69 5.21 5.64 6.76 4.22
Payables turnover 44.65 42.94 80.76 30.61 30.08 45.11 48.10 25.66 26.19 574.89 27.39 35.20 26.71 31.44 30.34 15.48 15.88 16.18 44.23 42.35
Working capital turnover 0.57 0.51 0.50 0.43 0.43 0.38 0.39 0.37 0.37 0.37 0.36 0.35 0.35 0.34 0.34 2.78 1.96 2.05 2.07 2.02

Simulations Plus Inc's inventory turnover ratio has fluctuated over the past few periods, with a substantial increase in November 2023 and a notable decrease in August 2023. The company's ability to manage its inventory effectively improved in November 2023, resulting in a higher turnover rate.

In terms of receivables turnover, Simulations Plus Inc has generally maintained a stable performance, with minor fluctuations observed. The company's ability to collect outstanding receivables, as indicated by this ratio, shows consistency over the periods analyzed.

The payables turnover ratio for Simulations Plus Inc displays some inconsistency, with significant variability seen across different periods. This ratio signifies the company's efficiency in paying its suppliers and managing its accounts payable. The sharp increase in payables turnover in November 2021 indicates a change in the company's payment practices during that period.

Furthermore, the working capital turnover ratio for Simulations Plus Inc has shown stability over the periods analyzed. This ratio reflects how efficiently the company is utilizing its working capital to generate sales. The noticeable spike in February 2020 suggests a significant improvement in utilizing working capital during that particular period.

Overall, while there are fluctuations in some activity ratios, Simulations Plus Inc appears to have maintained a reasonable level of efficiency in managing its inventory, receivables, payables, and working capital turnover over the periods analyzed.

Average number of days

Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020 May 31, 2020 Feb 29, 2020 Nov 30, 2019 Aug 31, 2019 May 31, 2019
Days of inventory on hand (DOH) days — 0.99 25.23 — 13.77 33.72 46.92 10.75 15.12 19.51 34.85 17.12 42.70 19.58 33.25 13.94 16.81 3.35 30.95 —
Days of sales outstanding (DSO) days 74.02 60.80 62.50 66.95 76.47 79.89 93.35 130.43 110.16 89.56 77.38 102.48 90.33 62.39 65.14 98.85 70.11 64.71 54.01 86.52
Number of days of payables days 8.17 8.50 4.52 11.92 12.14 8.09 7.59 14.23 13.94 0.63 13.33 10.37 13.67 11.61 12.03 23.57 22.99 22.56 8.25 8.62

Simulations Plus Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, the company holds inventory before selling it.
- In the latest period, the company had 0.99 days of inventory on hand, indicating a very efficient inventory turnover.
- The trend has fluctuated significantly over the periods, with some quarters showing higher levels, which could indicate changes in demand or inventory management strategies.

2. Days of Sales Outstanding (DSO):
- The DSO metric reveals the average number of days it takes for the company to collect its accounts receivable.
- Simulations Plus Inc's DSO has varied over time, with the latest period showing 74.02 days, suggesting an increase in the collection period compared to the previous quarter.
- Generally, a lower DSO is favorable as it indicates faster cash conversion from sales.

3. Number of Days of Payables:
- This metric shows how long the company takes to pay its suppliers or days of payables outstanding.
- The company's payables period has also fluctuated, with the latest period showing 8.17 days.
- A longer payables period can imply better cash flow management as the company can hold onto cash longer before settling its payables.

Overall, analyzing these activity ratios can help investors and stakeholders understand how effectively Simulations Plus Inc manages its working capital and operating cycle to generate revenue and control costs.

Long-term

Feb 29, 2024 Nov 30, 2023 Aug 31, 2023 May 31, 2023 Feb 28, 2023 Nov 30, 2022 Aug 31, 2022 May 31, 2022 Feb 28, 2022 Nov 30, 2021 Aug 31, 2021 May 31, 2021 Feb 28, 2021 Nov 30, 2020 Aug 31, 2020 May 31, 2020 Feb 29, 2020 Nov 30, 2019 Aug 31, 2019 May 31, 2019
Fixed asset turnover 76.71 127.54 88.79 79.43 66.19 78.38 85.29 85.69 78.60 20.60 25.28 36.64 49.44 71.96 94.95 112.25 112.58 106.97 99.62 104.59
Total asset turnover 0.33 0.33 0.32 0.31 0.31 0.28 0.29 0.28 0.27 0.27 0.26 0.26 0.26 0.25 0.25 1.12 0.77 0.75 0.75 0.72

Simulations Plus Inc's fixed asset turnover ratio has shown variability over the periods analyzed, ranging from a low of 20.60 to a high of 127.54. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio suggests better utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has been relatively stable, ranging from 0.25 to 0.33. This ratio reflects the company's ability to generate sales relative to its total assets. A higher total asset turnover ratio indicates that the company is generating more sales from its assets.

Overall, while the fixed asset turnover ratio fluctuates significantly, the total asset turnover ratio remains relatively consistent. This suggests that Simulations Plus Inc may be actively managing its fixed assets to improve efficiency in generating revenue, while also maintaining a consistent level of sales generation relative to its total assets.