Shutterstock (SSTK)

Short-term

Turnover ratios

The activity ratios for Shutterstock provide insight into the efficiency of the company in managing its operations and resources over the years.

1. Inventory Turnover:
Unfortunately, there is no data available for the inventory turnover ratio for any of the years provided in the dataset. This may indicate that inventory information is not publicly disclosed or that the company operates with a minimal level of inventory relative to its sales.

2. Receivables Turnover:
The receivables turnover ratio shows a declining trend over the years, dropping from 15.28 in 2020 to 9.80 in 2024. This decrease suggests that it took the company longer to collect its accounts receivable in later years, which could indicate potential issues with credit policies, customer payment delays, or changes in sales terms.

3. Payables Turnover:
The payables turnover ratio fluctuates over the years, with a significant decrease from 223.87 in 2020 to 63.04 in 2021, followed by fluctuations around the 80s range in subsequent years. This fluctuation may indicate changes in payment terms with suppliers or shifts in the company's working capital management practices.

4. Working Capital Turnover:
The working capital turnover ratio shows variability in the available data, with a notable increase from 2.89 in 2020 to 14.15 in 2021. However, data is missing for the following years, making it difficult to assess the trend beyond 2021. A higher working capital turnover ratio indicates that the company is efficient in generating revenue relative to its working capital levels.

Overall, analyzing these activity ratios can help stakeholders understand how efficiently Shutterstock is managing its assets, liabilities, and working capital to support its business operations and sales activities.

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Average number of days

Activity ratios are used to evaluate how effectively a company is managing its resources and operations. Let's analyze Shutterstock's activity ratios based on the provided data:

1. Days of Inventory on Hand (DOH): The information for this ratio is not available in the provided data, as it is indicated as "— days" for all the years from 2020 to 2024. Without knowing the exact number of days of inventory on hand, it is challenging to assess how efficiently Shutterstock is managing its inventory.

2. Days of Sales Outstanding (DSO): DSO measures how long it takes for a company to collect payment after making a sale. As per the data, Shutterstock's DSO decreased from 23.90 days in 2020 to 22.61 days in 2021, but then increased to 29.70 days in 2022 and further to 38.00 days in 2023 before slightly decreasing to 37.24 days in 2024. The upward trend in DSO from 2021 to 2024 indicates that Shutterstock is taking longer to collect payments from its customers, which may have implications for its cash flow and liquidity.

3. Number of Days of Payables: This ratio reflects the average number of days that a company takes to pay its suppliers. Shutterstock's number of days of payables increased from 1.63 days in 2020 to 5.79 days in 2021, and then decreased to 3.69 days in 2022. It slightly increased to 4.33 days in 2023 before decreasing to 4.02 days in 2024. The fluctuation in this ratio suggests changes in Shutterstock's payment terms or supplier relationships over the years.

In conclusion, while the data provides insights into Shutterstock's collections and payment processes, the lack of information on inventory management hinders a comprehensive evaluation of the company's overall efficiency in managing its operating cycle. Further analysis and context are needed to fully interpret the impact of these activity ratios on Shutterstock's financial performance.

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Long-term

Based on the provided data, we can analyze two long-term activity ratios for Shutterstock over the years 2020 to 2024:

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets.
- From 2020 to 2024, Shutterstock's fixed asset turnover ratios have fluctuated. The ratio was highest in 2021 at 16.02, indicating that the company generated $16.02 in revenue for every dollar of fixed assets invested.
- While there was a slight decline in 2023, the ratio remained relatively strong, indicating efficient utilization of fixed assets to generate revenue.
- Overall, Shutterstock has shown a consistent ability to generate revenue from its fixed assets over the years.

2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company utilizes all its assets to generate revenue.
- Over the five-year period, Shutterstock's total asset turnover ratio varied, with a general declining trend.
- The ratio was highest in 2020 at 0.92, indicating that the company generated $0.92 in revenue for every dollar of total assets.
- However, the ratio decreased to 0.71 in 2024, suggesting a decline in the company's ability to generate revenue relative to its total asset base.
- This declining trend may indicate inefficiencies in utilizing the company's total assets to generate revenue, which is a point of concern for potential investors or stakeholders.

In conclusion, while Shutterstock has maintained a relatively strong fixed asset turnover ratio over the years, the declining trend in the total asset turnover ratio raises concerns about the overall efficiency of asset utilization for revenue generation. It is essential for Shutterstock to closely monitor and improve its total asset turnover efficiency to ensure sustainable long-term growth and profitability.