Synnex Corporation (SNX)

Short-term

Turnover ratios

Synnex Corporation's activity ratios provide insight into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory Turnover: The inventory turnover ratio indicates how many times Synnex Corporation sells and replenishes its inventory throughout a period. The trend shows a relatively stable and optimal performance, with a slight decrease in recent periods, possibly indicating changes in demand or inventory management.

2. Receivables Turnover: The receivables turnover ratio measures how quickly Synnex collects outstanding receivables from its customers. The company has shown fluctuating performance in this aspect, with a significant increase in turnover in certain periods, reflecting variations in credit policies or customer payment behaviors.

3. Payables Turnover: The payables turnover ratio illustrates how efficiently Synnex manages payments to its suppliers. The company has maintained a relatively stable turnover rate, indicating consistent payment practices and relationships with vendors.

4. Working Capital Turnover: This ratio assesses how effectively Synnex utilizes its working capital to generate sales. The trend indicates a generally increasing turnover, suggesting improved efficiency in utilizing working capital over time.

Overall, Synnex Corporation's activity ratios demonstrate a mix of stable and fluctuating performance across different aspects of its operations, highlighting areas where the company excels in efficiency and areas where there may be potential for further optimization and improvement.

---

Average number of days

Based on the provided data regarding the activity ratios of Synnex Corporation, we can observe the following trends:

1. Days of Inventory on Hand (DOH):
- The DOH for Synnex Corporation has fluctuated over the periods analyzed, ranging from a low of 35.37 days on August 31, 2020, to a high of 81.57 days on November 30, 2021.
- Generally, a lower DOH indicates efficient inventory management, as the company is able to sell its products quickly without having excess stock on hand.

2. Days of Sales Outstanding (DSO):
- The DSO for Synnex Corporation has also shown variability, with a low of 36.79 days on August 31, 2021, and a high of 95.94 days on November 30, 2021.
- A lower DSO signifies that the company is collecting revenue from sales more quickly, which is favorable for cash flow management.

3. Number of Days of Payables:
- The number of days of payables for Synnex Corporation has seen fluctuations, such as a low of 44.66 days on February 29, 2020, and a high of 147.78 days on November 30, 2021.
- A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which can be an indication of strength if used effectively or a potential red flag if the company is delaying payments excessively.

Overall, when analyzing the activity ratios of Synnex Corporation, it is crucial to consider the trends over time and compare them to industry benchmarks to assess the company's operational efficiency and effectiveness in managing its working capital.

---

Long-term

The fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets. For Synnex Corporation, we observe a fluctuating trend in the fixed asset turnover ratio over the years. The ratio ranged from a high of 149.66 in August 31, 2022, to a low of 34.92 in August 31, 2020. The substantial increase in the ratio in recent periods indicates improved efficiency in utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects how well the company utilizes all its assets to generate sales. Synnex Corporation had a mixed trend in total asset turnover, with fluctuations observed over the periods. The ratio ranged from a low of 0.75 in February 28, 2021, to a high of 2.72 in May 31, 2021. Overall, the company managed to maintain a moderate level of asset turnover efficiency, albeit experiencing some variability.

In conclusion, the analysis of Synnex Corporation's long-term activity ratios suggests that the company has shown improvements in leveraging its fixed assets to generate revenue, while also maintaining a reasonable level of total asset turnover efficiency. These trends indicate management's efforts to optimize asset utilization and drive operational performance.