STAAR Surgical Company (STAA)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of STAAR Surgical Company:

1. Inventory Turnover:
- The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a specific period.
- The trend for STAAR Surgical Company's inventory turnover is as follows: it was 2.49 in 2020, increased to 3.00 in 2021, then declined to 2.53 in 2022, further dropped to 1.99 in 2023, and decreased again to 1.72 in 2024.
- A higher inventory turnover ratio generally indicates more efficient management of inventory, as it suggests that the company is selling its goods more quickly.

2. Receivables Turnover:
- The receivables turnover ratio measures how effectively a company is collecting payment on its credit sales.
- However, the data provided shows that there are no receivables turnover figures available for STAAR Surgical Company for the years 2020 to 2024.

3. Payables Turnover:
- The payables turnover ratio indicates how quickly a company pays its suppliers.
- Similarly, there is no data available for payables turnover for STAAR Surgical Company for the years 2020 to 2024.

4. Working Capital Turnover:
- The working capital turnover ratio measures the efficiency of a company in generating sales revenue from its working capital.
- STAAR Surgical Company's working capital turnover has been relatively stable over the years, with values of 0.93 in 2020, 1.04 in 2021, 1.09 in 2022, 1.07 in 2023, and 1.05 in 2024.
- A higher working capital turnover ratio indicates that the company is effectively using its working capital to generate sales.

In conclusion, while STAAR Surgical Company has shown fluctuations in its inventory turnover ratio and maintained a stable working capital turnover ratio, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of the company's overall activity efficiency. Further information on these ratios would provide a more complete picture of the company's operational performance.

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Average number of days

STAAR Surgical Company's Days of Inventory on Hand (DOH) has shown fluctuations over the years, starting at 146.58 days in 2020, decreasing to 121.64 days in 2021, then increasing to 144.55 days in 2022, rising further to 183.80 days in 2023, and peaking at 212.68 days in 2024.

However, there is no data provided for Days of Sales Outstanding (DSO) and Number of Days of Payables for any of the years, making it difficult to assess the company's efficiency in collecting receivables and managing payables.

The increasing trend in Days of Inventory on Hand suggests that STAAR Surgical may be carrying more inventory relative to its sales, which could tie up capital and result in holding costs. This situation warrants further investigation into inventory management practices to optimize working capital efficiency.

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Long-term

Long-term activity ratios provide insight into how efficiently a company utilizes its assets over an extended period. For STAAR Surgical Company, we analyze the fixed asset turnover and total asset turnover ratios.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures the efficiency of the company in generating sales revenue from its fixed assets.
- In 2020, the ratio was 6.80, indicating that the company generated $6.80 in sales for every dollar invested in fixed assets.
- The ratio declined to 3.40 in 2021 and slightly increased to 3.49 in 2022, suggesting a decrease in the efficiency of utilizing fixed assets to generate sales.
- There is no data available for 2023 and 2024, implying that the company may have experienced challenges or changes affecting this ratio in those years.

2. Total Asset Turnover:
- The total asset turnover ratio reflects the company's ability to generate sales relative to its total assets.
- STAAR Surgical Company's total asset turnover ratio was 0.64 in 2020, meaning it generated $0.64 in sales for every dollar of total assets.
- The ratio increased to 0.67 in 2021 and further to 0.69 in 2022, indicating an improvement in utilizing total assets to generate sales.
- However, the ratio decreased to 0.66 in 2023 and 0.62 in 2024, suggesting a reduction in the efficiency of generating sales from total assets in the latter years.

In summary, the analysis of STAAR Surgical Company's long-term activity ratios shows fluctuating trends in both fixed asset turnover and total asset turnover over the years. This indicates varying levels of efficiency in utilizing assets to generate sales, which could merit further investigation into the company's operational strategies and asset management practices.