Sarepta Therapeutics Inc (SRPT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.59 | 2.23 | 1.55 | 1.37 | 1.67 |
| Receivables turnover | 3.08 | 4.28 | 4.59 | 5.33 | 4.19 |
| Payables turnover | 3.12 | 4.74 | 3.75 | 2.87 | 4.20 |
| Working capital turnover | 0.65 | 0.48 | 0.33 | 0.26 | 0.32 |
Sarepta Therapeutics Inc's activity ratios provide insight into the efficiency of the company's operations in managing its assets and liabilities.
1. Inventory turnover: Sarepta's inventory turnover has fluctuated over the years, ranging from 1.37 to 2.23. A lower inventory turnover indicates that the company is holding onto its inventory for a longer period before selling it. This may suggest inefficiencies in inventory management or possibly slow sales.
2. Receivables turnover: The receivables turnover ratio has shown a declining trend from 5.33 in 2019 to 3.08 in 2023. This decline indicates a decrease in the frequency with which Sarepta collects payment from its customers. A lower ratio may suggest potential issues with credit policies or difficulty in collecting revenue.
3. Payables turnover: Sarepta's payables turnover ratio has also experienced fluctuations, ranging from 2.87 to 4.74. A higher payables turnover ratio reflects that the company is paying its suppliers more frequently. This could imply favorable credit terms with suppliers or efficient management of payables.
4. Working capital turnover: The working capital turnover ratio measures how effectively Sarepta utilizes its working capital to generate sales. The ratio has increased over the years, indicating improved efficiency in utilizing working capital. A higher ratio suggests that the company is generating more sales revenue relative to its working capital.
Overall, Sarepta's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the years. Analyzing these ratios in conjunction with other financial metrics can provide a comprehensive understanding of the company's operational performance and potential areas for improvement.
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 | 229.38 | 163.73 | 236.12 | 265.80 | 218.98 |
| Days of sales outstanding (DSO) | days | 118.32 | 85.26 | 79.56 | 68.49 | 87.10 |
| Number of days of payables | days | 117.17 | 76.96 | 97.31 | 127.29 | 87.01 |
Days of Inventory on Hand (DOH) measures how many days it takes for Sarepta Therapeutics Inc to sell its inventory. The trend shows inconsistency with a decrease from 2020 to 2022, followed by an increase in 2023. The highest DOH was in 2020, indicating slower inventory turnover, which might be due to overstocking or inefficiencies in the supply chain.
Days of Sales Outstanding (DSO) gauges the average number of days it takes for the company to collect payments from its customers. Sarepta's DSO has been fluctuating over the years, with an overall increase from 2019 to 2023. Higher DSO suggests that the company is taking longer to collect revenue, possibly indicating credit policy changes or difficulties in collecting payments.
Number of Days of Payables reflects the average number of days it takes for Sarepta to pay its suppliers. The trend shows fluctuation with varying payment cycles. The increase in 2021 and 2023 compared to 2022 indicates that the company is taking longer to settle its payables, which could imply a more conservative approach to managing cash flow or challenges in supplier relationships.
In conclusion, Sarepta's activity ratios indicate certain inconsistencies and fluctuations in its inventory management, sales collection, and payment practices over the years, potentially signaling inefficiencies or strategic changes in financial operations.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.47 | 5.18 | 3.67 | 2.84 | 2.94 |
| Total asset turnover | 0.38 | 0.30 | 0.22 | 0.18 | 0.21 |
The fixed asset turnover ratio for Sarepta Therapeutics Inc has shown a consistent improvement over the past five years, indicating the company's ability to generate more sales from its fixed assets. The ratio increased from 2.94 in 2019 to 5.47 in 2023, which suggests that the company is becoming more efficient in utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has also shown an upward trend, although it remains relatively low compared to the fixed asset turnover ratio. This indicates that Sarepta Therapeutics Inc is gradually improving its efficiency in generating sales from all its assets, not just fixed assets. The total asset turnover ratio increased from 0.21 in 2019 to 0.38 in 2023.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios reflects positive long-term activity for Sarepta Therapeutics Inc, indicating improved asset utilization and revenue generation efficiency over the years.