SanDisk Corp (SNDK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Inventory turnover | 4.09 | 5.10 | 4.36 | 4.49 | 3.78 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.52 | 3.30 | 1.80 | 1.85 | — |
SanDisk Corp's inventory turnover ratio has shown a fluctuating trend over the years, increasing from 3.78 in 2011 to a peak of 5.10 in 2014 before declining to 4.09 in 2015. This suggests that the company is managing its inventory relatively well, with a higher turnover ratio indicating efficient inventory management.
The company's receivables turnover ratio was not provided for any of the years, making it difficult to assess the efficiency of SanDisk's accounts receivable management. Without this data, it is challenging to evaluate how quickly the company is collecting outstanding receivables from its customers.
Similarly, the payables turnover ratio was also not provided for any of the years, which would have been useful in understanding how quickly SanDisk pays its suppliers. A higher payables turnover ratio would indicate that the company is taking longer to pay its suppliers, potentially improving cash flow and working capital efficiency.
The working capital turnover ratio, however, indicates how effectively the company generates revenue relative to its working capital. SanDisk's working capital turnover ratio fluctuated between 1.52 and 3.30 during the period, showing some variability in its efficiency in utilizing working capital to generate sales.
In summary, while SanDisk Corp has shown efficiency in managing its inventory, the lack of data on receivables and payables turnover ratios hinders a complete assessment of the company's overall activity ratios.
Average number of days
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 89.31 | 71.57 | 83.66 | 81.26 | 96.54 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios for SanDisk Corp over the period from December 31, 2011, to December 31, 2015, provide insights into the company's effectiveness in managing its inventory turnover and accounts receivable collection.
1. Days of Inventory on Hand (DOH):
- SanDisk Corp's DOH decreased from 96.54 days in 2011 to 71.57 days in 2014 before rising to 89.31 days in 2015. A lower DOH indicates efficient inventory management, as the company is selling its goods quickly without holding excess inventory.
- The decrease in DOH from 2011 to 2014 suggests that SanDisk effectively managed its inventory levels to match demand in the market. However, the increase in 2015 may indicate challenges in inventory turnover or changes in the company's sales patterns.
2. Days of Sales Outstanding (DSO):
- The data provided shows "— days" for all years, indicating that specific information on DSO is not available. DSO measures how quickly a company collects its accounts receivable, reflecting its efficiency in managing credit sales. Without this data, it is challenging to assess SanDisk's effectiveness in collecting payments from customers.
3. Number of Days of Payables:
- Similar to DSO, the data marks "— days" for all years, which means the information on the number of days of payables is not provided. This ratio assesses how long a company takes to pay its suppliers, impacting cash flow and relationships with vendors.
- Without insights into the number of days of payables, it is difficult to evaluate SanDisk's payment practices and liquidity management.
In summary, based on the available data, SanDisk Corp demonstrated fluctuations in its inventory holding periods over the years, indicating potential shifts in production levels or market demand. However, the absence of information on DSO and payables hinders a comprehensive analysis of the company's overall activity ratios and working capital management. Additional data on accounts receivable and payable turnover would provide a more complete picture of SanDisk's operational efficiency.
Long-term
| Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | Dec 31, 2012 | Dec 31, 2011 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 6.81 | 9.15 | 9.41 | 7.59 | 13.99 |
| Total asset turnover | 0.60 | 0.64 | 0.59 | 0.49 | 0.47 |
Long-term activity ratios, such as the fixed asset turnover and total asset turnover, provide insights into how efficiently a company like SanDisk Corp is utilizing its assets to generate revenue.
Fixed Asset Turnover:
- SanDisk Corp's fixed asset turnover ratio decreased from 13.99 in 2011 to 6.81 in 2015. This indicates a decline in the company's ability to generate revenue from its investment in fixed assets over the years.
- A high fixed asset turnover ratio suggests that the company is effectively using its fixed assets to generate sales, while a declining ratio may imply inefficiency in asset utilization or changes in the business model.
Total Asset Turnover:
- The total asset turnover ratio for SanDisk Corp fluctuated between 0.47 in 2011 and 0.60 in 2015. This ratio reflects how effectively the company generates sales relative to its total assets.
- An increasing total asset turnover ratio indicates improved efficiency in utilizing total assets to generate sales, while a decreasing ratio may signal that the company is becoming less efficient in converting assets into revenue over time.
Overall, the declining trend in fixed asset turnover and the fluctuation in total asset turnover for SanDisk Corp suggest potential shifts in the company's asset management and business operations that could be further analyzed to understand the underlying reasons for these changes.