Stericycle Inc (SRCL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 81.14 | 59.30 | 43.15 | 59.25 |
| Receivables turnover | 4.68 | 6.56 | 6.30 | 6.69 | 5.84 |
| Payables turnover | 12.45 | 12.62 | 12.35 | 15.00 | 16.34 |
| Working capital turnover | — | — | — | — | — |
The inventory turnover ratio for Stericycle Inc. is not provided in the table. However, we can analyze the Receivables Turnover, Payables Turnover, and Working Capital Turnover ratios:
1. Receivables Turnover:
- The Receivables Turnover ratio measures how efficiently a company is collecting revenues from its customers.
- Stericycle Inc.'s Receivables Turnover ratio has fluctuated over the past five years, with a decrease from 7.03 in 2020 to 4.80 in 2023.
- A decreasing trend in the Receivables Turnover ratio may indicate potential issues with collecting accounts receivable efficiently.
2. Payables Turnover:
- The Payables Turnover ratio evaluates how efficiently a company is managing its payments to suppliers and vendors.
- Stericycle Inc.'s Payables Turnover ratio has been relatively stable over the past five years, ranging from 7.44 in 2021 to 9.70 in 2019.
- A higher Payables Turnover ratio signifies that the company is quickly paying off its obligations, which can be advantageous for managing working capital effectively.
3. Working Capital Turnover:
- The Working Capital Turnover ratio assesses how well a company utilizes its working capital to generate sales.
- The data for Stericycle Inc.'s Working Capital Turnover ratio is not available in the table, making it challenging to provide a specific analysis.
- Generally, a higher Working Capital Turnover ratio indicates better efficiency in utilizing working capital to generate revenues.
In conclusion, while the Receivables Turnover ratio for Stericycle Inc. has shown a declining trend, the Payables Turnover ratio has been relatively stable. The Working Capital Turnover ratio remains unknown, limiting the overall assessment of the company's efficiency in utilizing working capital to drive sales.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 4.50 | 6.15 | 8.46 | 6.16 |
| Days of sales outstanding (DSO) | days | 78.02 | 55.66 | 57.98 | 54.53 | 62.55 |
| Number of days of payables | days | 29.33 | 28.93 | 29.54 | 24.33 | 22.34 |
Analyzing Stericycle Inc.'s activity ratios reveals insights into the company's efficiency in managing its inventory, receivables, and payables.
Days of Inventory on Hand (DOH) data is missing for the years provided, making it challenging to evaluate how quickly Stericycle Inc. is turning over its inventory. This ratio indicates the number of days it takes for the company to sell its inventory, with lower values generally suggesting better inventory management.
Days of Sales Outstanding (DSO) has shown some fluctuation over the period provided, ranging from 55.94 days in 2022 to 76.03 days in 2023. This ratio measures the average number of days it takes for Stericycle Inc. to collect payment after a sale. Lower DSO values indicate quicker conversion of receivables into cash, thus improving the company's liquidity and cash flow efficiency.
The Number of Days of Payables showcases a varying trend from 37.64 days in 2019 to 49.03 days in 2021. A higher number of days of payables indicates that Stericycle Inc. is taking longer to pay its suppliers, which can benefit the company by allowing it to hold onto cash for a longer period but could strain supplier relationships if excessive.
By examining these activity ratios, analysts can assess Stericycle Inc.'s effectiveness in managing its working capital cycle, optimizing cash flow, and identifying potential areas for operational improvement.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 3.73 | 3.80 | 3.72 | 3.63 | 3.98 |
| Total asset turnover | 0.48 | 0.51 | 0.48 | 0.46 | 0.49 |
The fixed asset turnover ratio for Stericycle Inc. has been relatively stable over the past five years, ranging between 3.72 and 4.14 times. This indicates that the company generates revenue efficiently from its fixed assets, with a higher ratio suggesting better utilization of these assets to generate sales.
On the other hand, the total asset turnover ratio has shown slightly more fluctuation, ranging from 0.48 to 0.51 times. This ratio measures the efficiency of the company in generating sales from all its assets, including both fixed and current assets. A lower total asset turnover ratio suggests that the company may be less efficient in utilizing its total assets to generate sales.
Overall, Stericycle Inc. has maintained a healthy level of efficiency in generating sales from its fixed assets over the years, although there may be some room for improvement in optimizing the utilization of its total assets to drive revenue.