Stericycle Inc (SRCL)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	—	66.46	79.67	76.96	81.14	69.47	78.58	64.25	59.30	45.46	79.98	52.55	43.02	32.92	21.93	4.12	49.07	32.06	28.74	28.36
Receivables turnover	4.68	5.64	6.50	6.51	6.56	5.83	5.68	5.78	6.30	6.29	6.39	6.42	6.70	6.83	7.79	7.55	5.99	5.93	5.48	5.69
Payables turnover	12.45	13.09	12.89	13.67	12.62	13.66	13.43	13.07	12.35	12.59	14.56	13.01	14.96	14.49	17.59	14.22	13.53	15.19	12.25	11.71
Working capital turnover	—	—	—	—	—	247.89	—	—	—	—	—	—	—	—	—	8.21	—	—	96.29	219.29

Inventory turnover ratios are not provided in the table. The Receivables turnover for Stericycle Inc. has remained relatively stable over the past eight quarters, ranging from 4.80 to 6.62. This indicates that the company is efficient in collecting payments from its customers during each period.

In terms of payables turnover, Stericycle Inc. has shown a consistent ability to manage its outstanding bills effectively, with ratios ranging from 7.75 to 8.62. This suggests that the company is able to pay its obligations within a reasonable timeframe.

The Working capital turnover ratio is only available for Q3 2022, showing a significant value of 246.94, which may indicate efficient utilization of working capital during that period.

Overall, based on the activity ratios provided, Stericycle Inc. appears to have solid management of its receivables and payables, ensuring smooth cash flow operations within the business.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	—	5.49	4.58	4.74	4.50	5.25	4.65	5.68	6.15	8.03	4.56	6.95	8.48	11.09	16.64	88.57	7.44	11.39	12.70	12.87
Days of sales outstanding (DSO)	days	78.02	64.68	56.12	56.03	55.67	62.60	64.22	63.15	57.98	58.04	57.16	56.85	54.45	53.45	46.87	48.32	60.93	61.53	66.66	64.11
Number of days of payables	days	29.33	27.87	28.31	26.69	28.93	26.72	27.18	27.93	29.54	28.98	25.07	28.06	24.40	25.19	20.75	25.66	26.97	24.02	29.79	31.17

In analyzing Stericycle Inc.'s activity ratios, we focus on its days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables. The DOH data is not available, making it challenging to assess inventory turnover. However, looking at DSO, we notice a fluctuating trend with an increase in Q4 2023 compared to the previous quarter, indicating potential delays in collecting receivables.

The DSO of 76.03 days in Q4 2023 is higher than in Q3 2023 (63.47 days) and Q4 2022 (55.94 days), suggesting a potential inefficiency in collecting payments from customers. This trend warrants further investigation to ensure timely receivables management and cash flow optimization.

In terms of payables, Stericycle Inc. has shown consistency in managing its payables, with the number of days remaining relatively stable over the quarters. The company takes approximately 47 days to pay its suppliers, indicating a balanced approach in managing its payables.

Overall, while the DSO is a concern due to the recent increase, the stability in payables management is a positive aspect. Stericycle Inc. may benefit from focusing on improving receivables collection efficiency to enhance its working capital management and overall financial performance.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	3.73	3.74	3.85	3.83	3.80	3.80	3.68	3.71	3.72	3.80	3.61	3.55	3.64	3.77	4.15	4.34	4.08	4.25	4.27	4.50
Total asset turnover	0.48	0.50	0.51	0.51	0.51	0.51	0.49	0.48	0.48	0.49	0.47	0.45	0.46	0.47	0.52	0.50	0.51	0.50	0.49	0.50

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. In the case of Stericycle Inc., the fixed asset turnover has been relatively stable over the past eight quarters, ranging from 3.68 to 3.92. This indicates that the company is consistently generating revenue from its fixed assets at a moderate to high level, with the higher ratios suggesting better efficiency in utilizing these assets.

On the other hand, the total asset turnover ratio reflects the company's overall efficiency in generating revenue from all its assets, including both fixed and current assets. Stericycle Inc. has shown a consistent improvement in its total asset turnover ratio over the same period, increasing from 0.48 to 0.52. This suggests that the company has been improving its ability to generate revenue from its total asset base, indicating better overall asset utilization efficiency.

Overall, the analysis of Stericycle Inc.'s long-term activity ratios indicates that the company has been efficiently utilizing its fixed assets to generate revenue, as reflected in the stable and relatively high fixed asset turnover ratio. Additionally, the increasing trend in the total asset turnover ratio suggests an overall improvement in the company's ability to generate revenue from all its assets, signifying enhanced efficiency in asset utilization over the past eight quarters.