Shutterstock (SSTK)

Short-term

Turnover ratios

Based on the provided data for Shutterstock's activity ratios, we can analyze the following:

1. Inventory Turnover: Unfortunately, the data is not available for inventory turnover for any period, so we cannot assess how efficiently Shutterstock is managing its inventory.

2. Receivables Turnover: This ratio measures how many times during a period the company collects its accounts receivable. The trend for Shutterstock's receivables turnover shows a fluctuating pattern over the reporting periods. It ranged from a high of 17.63 in March 2022 to a low of 9.06 in June 2024. Generally, a higher turnover ratio indicates better efficiency in collecting revenues from customers.

3. Payables Turnover: The payables turnover ratio indicates how quickly a company pays its suppliers. Shutterstock's payables turnover ratio varied significantly throughout the periods, with a peak of 220.75 in December 2020 and a low of 40.54 in September 2024. A higher turnover ratio suggests that the company is paying its suppliers more quickly.

4. Working Capital Turnover: This ratio shows how effectively a company utilizes its working capital to generate revenue. Shutterstock's working capital turnover ratio demonstrates a varying trend over the reporting periods, with the highest ratio recorded at 22.02 in March 2022. A higher turnover ratio is usually seen as positive, as it indicates that the company is efficiently using its working capital to support operations and generate sales.

In conclusion, Shutterstock's activity ratios reflect varying levels of efficiency in managing its receivables, payables, and working capital over the analyzed periods. Further insights can be gained by comparing these ratios with industry benchmarks or trends in the company's financial performance.

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Average number of days

Based on the data provided for Shutterstock, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH): The information regarding the days of inventory on hand is not available for the specified periods, as indicated by "— days" for each time point. This suggests that the company does not disclose the specific data related to its inventory management and turnover.

2. Days of Sales Outstanding (DSO): The days of sales outstanding represent the average number of days it takes for the company to collect revenues after a sale is made. From March 31, 2020, to December 31, 2024, the DSO fluctuated between 20.71 days to 40.31 days. The decreasing trend from 2020 to 2021 suggests an improvement in the company's collection efficiency, but the subsequent increase indicates potential challenges in managing receivables efficiently.

3. Number of Days of Payables: This ratio indicates how long it takes for the company to pay its suppliers. The data shows that the number of days of payables ranged from 1.65 days to 9.00 days during the period from March 31, 2020, to December 31, 2024. A lower number of days implies a more aggressive approach to paying suppliers, while a higher number may suggest a more conservative approach or potential cash flow challenges.

Overall, a deeper analysis of these activity ratios in conjunction with other financial metrics would provide a more comprehensive understanding of Shutterstock's operational efficiency and effectiveness in managing working capital.

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Long-term

Shutterstock's Fixed Asset Turnover ratio has exhibited a general increasing trend over the years, starting at 11.37 in March 2020 and peaking at 16.02 in December 2021. The ratio measures the efficiency of the company in generating revenue from its fixed assets, indicating that Shutterstock has been effectively utilizing its long-term assets to generate sales.

On the other hand, the Total Asset Turnover ratio has displayed more fluctuation, with some periods showing a decrease in asset turnover efficiency. The ratio was at its lowest at 0.67 in September 2024. This ratio reflects the company's overall ability to generate revenue from all its assets, not just fixed assets.

Overall, the analysis of these long-term activity ratios suggests that Shutterstock has been effectively managing and utilizing its fixed assets to generate revenue, while the efficiency in generating revenue from all assets has shown more variability over time. It is important for the company to monitor and optimize its asset turnover ratios to ensure continued operational efficiency and profitability.