Bio-Techne Corp (TECH)

Short-term

Turnover ratios

The activity ratios of Bio-Techne Corp over the period from June 30, 2021, to June 30, 2025, reflect certain trends and underlying operational efficiencies:

Inventory Turnover: The ratio decreased from 2.55 in 2021 to 2.47 in 2022, further declining to 2.14 in 2023 before slight increases to 2.17 in 2024 and 2.27 in 2025. This downward trend indicates a slowing in the rate at which inventory is sold and replaced, suggesting possible accumulation of inventory or decreased sales velocity. The slight rebound in 2024 and 2025 could imply a stabilization or minor improvement in inventory management.

Receivables Turnover: There was a decline from 6.40 in 2021 to 5.68 in 2022 and 5.20 in 2023, followed by a decrease to 4.80 in 2024 before rising to 5.90 in 2025. The overall trend shows a beginning of reduced efficiency in collecting accounts receivable, with the notable recovery in 2025 indicating an improvement in collection processes or changes in credit policies.

Payables Turnover: This ratio increased from 10.15 in 2021 to 10.31 in 2022, then to 14.29 in 2023, before decreasing to 10.25 in 2024 and rising significantly to 16.96 in 2025. The sharp increase in 2023 and especially in 2025 suggests a strategic acceleration in paying suppliers, which could be associated with better cash flow management or changes in payment policies, possibly taking advantage of early payment discounts or extended credit terms.

Working Capital Turnover: The ratio slightly declined from 2.60 in 2021 to 2.31 in 2023, then increased to 2.53 in 2024 and 2.82 in 2025. This indicates improved utilization of working capital over time, especially in the latter years, reflecting increased efficiency in generating sales from the working capital employed.

Overall, the activity ratios suggest some operational adjustments over the observed period. While inventory management and receivables collection appear to have faced some efficiency challenges earlier, recent improvements in receivables and working capital turnover ratios indicate efforts toward optimizing working capital utilization. Meanwhile, fluctuations in payables turnover highlight strategic payment practices that may impact liquidity and supplier relationships.

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Average number of days

The analysis of Bio-Techne Corp's activity ratios over the period from June 30, 2021, to June 30, 2025, reveals evolutionary patterns that reflect the company's operational efficiency and liquidity management.

Beginning with days of inventory on hand (DOH), there is an upward trend from 142.91 days in 2021 to a peak of approximately 170.76 days in 2023. This suggests that the company has been holding inventory for longer periods, which could indicate either strategic stockpiling, slower inventory turnover, or potential challenges in inventory management. After reaching this peak, a slight decline to 168.50 days in 2024 and further to 161.05 days in 2025 reflects a possible effort to optimize inventory levels and improve turnover rates.

Regarding days of sales outstanding (DSO), the ratio shows an increasing trend from 57.00 days in 2021 to 70.15 days in 2023, indicating a lengthening of the collection period and potentially slower receivables collection. However, a notable reduction to 61.91 days in 2025 suggests an improvement in receivables management, possibly driven by stricter credit policies or enhanced collection efforts.

The number of days of payables demonstrates some fluctuation. It decreased from 35.97 days in 2021 to 25.55 days in 2023, indicating that the company was settling its payables more quickly during this period. Subsequently, an increase to around 35.59 days in 2024 suggests a shift toward more extended payment terms, but a further decrease to 21.52 days in 2025 reflects a move back to earlier settlement periods.

In summary, the activity ratios exhibit a trend of inventory accumulation alongside fluctuating receivables and payables practices. The company has been holding inventories longer and extending its receivables collection period through 2023, followed by efforts to shorten DSO in 2025. Simultaneously, payables management has varied, with periods of rapid settlement interspersed with extended payment terms. These patterns may signal strategic adjustments aimed at balancing operational efficiency, cash flow management, and supplier relations.

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Long-term

The analysis of Bio-Techne Corp's long-term activity ratios over the provided periods reveals noteworthy trends. The fixed asset turnover ratio shows a consistent increase, rising from 3.30 as of June 30, 2021, to 3.83 by June 30, 2022, and subsequently reaching 5.03 by June 30, 2023. This upward trajectory indicates an improved efficiency in generating revenue from the company's fixed assets over time, suggesting effective utilization or potential investment in asset bases that are yielding higher returns.

Conversely, the total asset turnover ratio exhibits more modest fluctuations within the same timeframe. It increased slightly from 0.41 in 2021 to 0.48 in 2022, then experienced a slight decline to 0.43 in 2023, remaining stable through 2024 before rising again to 0.48 in 2025. The relative stability of the total asset turnover suggests that overall asset utilization has been relatively steady, with minor variations possibly attributable to changes in asset composition or operational scale.

Overall, the data indicates that Bio-Techne Corp significantly enhanced its efficiency in utilizing fixed assets during the period, contributing to higher revenue generation per unit of fixed assets. At the same time, the stability in total asset turnover reflects a consistent level of overall asset efficiency, albeit with some short-term fluctuations. The observed trends suggest an effective focus on optimizing fixed asset use, with overall asset utilization maintaining a steady performance.