STAAR Surgical Company (STAA)
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 | 0.99 | 1.10 | 1.32 | 1.13 | 1.26 | 1.52 | — | — | 1.50 | — | — | — | 1.25 | — | — | — | — | — | — | — |
| Receivables turnover | 3.32 | 2.71 | 3.11 | 4.32 | 4.37 | 4.90 | — | — | 5.03 | — | — | — | 4.38 | — | — | — | — | — | — | — |
| Payables turnover | 5.15 | 7.79 | 5.89 | 6.93 | 5.27 | 8.03 | 4.58 | 4.04 | 5.96 | 5.45 | 6.42 | 5.91 | 6.03 | 5.55 | 4.64 | 4.23 | 4.75 | 4.83 | 4.23 | 4.73 |
| Working capital turnover | 1.07 | 1.07 | 1.12 | 1.11 | 1.09 | 1.11 | 1.05 | 1.04 | 1.04 | 1.00 | 1.00 | 0.96 | 0.93 | 0.96 | 0.98 | 1.07 | 1.07 | 1.06 | 1.04 | 1.04 |
STAAR Surgical Company's inventory turnover has been relatively stable over the past few quarters, averaging around 1.25. This suggests that the company is efficiently managing its inventory levels and quickly turning over its inventory to generate sales.
In terms of receivables turnover, the company has shown a fluctuating trend, with higher levels in some quarters compared to others. On average, it takes the company around 4 days to collect its accounts receivable, indicating efficient management of credit sales.
The payables turnover ratio has also shown fluctuations, but overall, the company takes around 6 days on average to pay its suppliers. This indicates that the company is effectively managing its trade credit terms with suppliers.
The working capital turnover ratio has been relatively stable, averaging around 1.05. This indicates that the company is efficiently utilizing its working capital to generate sales revenue.
Overall, the activity ratios of STAAR Surgical Company suggest that the company is effectively managing its inventory, receivables, payables, and working capital to support its operations and drive revenue growth.
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 | 367.60 | 331.14 | 276.04 | 322.03 | 289.10 | 239.45 | — | — | 243.27 | — | — | — | 293.16 | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 109.99 | 134.80 | 117.31 | 84.43 | 83.57 | 74.46 | — | — | 72.50 | — | — | — | 83.26 | — | — | — | — | — | — | — |
| Number of days of payables | days | 70.93 | 46.83 | 61.97 | 52.70 | 69.26 | 45.46 | 79.71 | 90.45 | 61.25 | 67.01 | 56.83 | 61.78 | 60.49 | 65.76 | 78.66 | 86.20 | 76.86 | 75.63 | 86.23 | 77.19 |
STAAR Surgical Company's activity ratios indicate certain trends in the management of its inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- The company has experienced fluctuations in its DOH over the periods analyzed, with a high of 367.60 days and a low of 239.45 days.
- Generally, the higher the DOH, the longer it takes for the company to sell its inventory. This could signify inefficiencies in inventory management or an overstocked inventory position.
- The downward trend in DOH from Q4 2023 to Q1 2023 and then the subsequent increase in Q2 and Q3 2023 may indicate a change in the company's inventory management strategy.
2. Days of Sales Outstanding (DSO):
- STAAR Surgical Company has also shown variability in its DSO, ranging from 72.50 days to 134.80 days.
- A lower DSO is generally favorable as it implies quicker collection of accounts receivable, whereas a higher DSO could suggest issues with credit policies or difficulties in collecting payments.
- The decreasing trend in DSO from Q4 2023 to Q1 2023 followed by an increase in Q2 2023 may indicate changes in the company's credit policies or customer payment behaviors.
3. Number of Days of Payables:
- The company has demonstrated fluctuations in its number of days of payables, with a range of 45.46 days to 90.45 days.
- A higher number of days of payables may indicate that the company is taking longer to pay its suppliers, which could suggest cash flow management strategies or negotiating favorable payment terms.
- The variation in the number of days of payables over time may reflect changes in the company's relationships with suppliers or efforts to optimize working capital.
In conclusion, STAAR Surgical Company's activity ratios depict varying levels of efficiency in managing inventory, accounts receivable, and accounts payable. Monitoring these ratios over time can provide insights into the company's operational performance and effectiveness in managing its working capital.
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 | 4.82 | 4.93 | 5.47 | 5.51 | 5.58 | 5.81 | 6.11 | 6.13 | 6.42 | 6.74 | 7.21 | 6.80 | 6.80 | 6.90 | 6.91 | 7.57 | 8.80 | 9.60 | 10.10 | 11.46 |
| Total asset turnover | 0.66 | 0.66 | 0.69 | 0.70 | 0.68 | 0.71 | 0.70 | 0.69 | 0.67 | 0.67 | 0.70 | 0.67 | 0.64 | 0.67 | 0.68 | 0.74 | 0.72 | 0.74 | 0.73 | 0.73 |
STAAR Surgical Company's fixed asset turnover has shown a relatively stable trend over the past few years, ranging from 4.82 to 11.46. This ratio indicates that the company generates between 4.82 and 11.46 in sales revenue for each dollar invested in fixed assets. The increasing trend in fixed asset turnover suggests that the company is effectively utilizing its fixed assets to generate sales.
In contrast, the total asset turnover ratio has fluctuated between 0.64 and 0.74 during the same period. This ratio reveals that the company generates between 0.64 and 0.74 in sales revenue for each dollar invested in total assets. The fluctuations in total asset turnover may indicate changes in the efficiency of utilizing both fixed and current assets to generate sales.
Overall, STAAR Surgical Company's fixed asset turnover shows a more consistent and increasing trend compared to total asset turnover, which suggests a higher level of efficiency in utilizing fixed assets to generate sales revenue. However, the company may need to focus on improving the efficiency of utilizing total assets to boost overall sales.