Bio-Techne Corp (TECH)

Short-term

Turnover ratios

Bio-Techne Corp's inventory turnover ratio has shown a slight fluctuation over the periods, ranging from a low of 3.75 to a high of 6.76. This indicates that the company is managing its inventory levels efficiently, with higher turnover ratios generally considered more favorable as they suggest faster sales of inventory. However, the decreasing trend from 2022 to 2024 warrants further monitoring to ensure optimal inventory management.

The receivables turnover ratio for Bio-Techne Corp has also fluctuated over the periods, ranging from 4.80 to 6.65. This ratio indicates how quickly the company collects outstanding receivables, with higher ratios reflecting faster collection. The company has generally maintained a relatively stable performance in collecting receivables, although a decreasing trend is noticeable from 2022 to 2024, suggesting a potential slowdown in receivables collection efficiency.

Bio-Techne Corp's payables turnover ratio has shown significant variability over the periods, ranging from 17.64 to 36.26. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can be beneficial for cash flow management. The company's payables turnover has shown inconsistencies, with fluctuations that may reflect changes in payment terms or supplier relationships.

The working capital turnover ratio for Bio-Techne Corp has fluctuated between 1.71 and 2.70 over the periods. This ratio measures how effectively the company generates revenue from its working capital. A higher ratio is generally preferred as it indicates efficient utilization of working capital. Bio-Techne Corp has shown a relatively stable performance in generating revenue from its working capital, although there is a slight declining trend from 2022 to 2024, suggesting a potential need for improved efficiency in utilizing working capital.

Overall, Bio-Techne Corp's activity ratios indicate varying levels of efficiency in managing its assets and liabilities over the periods, with some fluctuations warranting further analysis to ensure optimal operational performance.

---

Average number of days

Days of Inventory on Hand (DOH) for Bio-Techne Corp have shown fluctuations over the past several quarters, ranging from a low of 54.03 days to a high of 97.42 days. Generally, the company has maintained its inventory for around 70-80 days, indicating that it takes Bio-Techne around 2-3 months to sell its inventory. The trend suggests some variability in inventory management efficiency.

Days of Sales Outstanding (DSO) have also varied, with figures ranging from 54.86 days to 76.00 days. The company has demonstrated the ability to collect payment from customers within a span of 2-3 months, although there are instances of longer collection periods.

In terms of the Number of Days of Payables, Bio-Techne Corp has recorded figures between 10.07 days and 20.69 days. The company generally takes around 2-3 weeks to pay its payables to suppliers. The increase in payables days from 2021 to 2024 may indicate a shift in the company's payment strategy or negotiating power with suppliers.

Overall, Bio-Techne Corp's activity ratios paint a picture of fluctuations in inventory management, collection efficiency, and payment practices over the quarters analyzed. Further analysis and comparison with industry benchmarks would provide more insights into the company's operational efficiency and effectiveness.

---

Long-term

Bio-Techne Corp's long-term activity ratios show the efficiency of the company in utilizing its assets to generate revenue. The fixed asset turnover has been relatively stable over time, indicating that the company is efficiently using its fixed assets to generate sales. The highest fixed asset turnover was seen in the June 2023 quarter at 5.03, indicating that for every dollar invested in fixed assets, the company generated $5.03 in sales.

Meanwhile, the total asset turnover has also been consistent, albeit at a lower level compared to the fixed asset turnover. This ratio shows the company's overall efficiency in generating sales from all its assets. The trend shows that Bio-Techne Corp has maintained a relatively stable total asset turnover over the periods, with slight fluctuations.

Overall, the company's ability to efficiently utilize both fixed and total assets to generate revenue is crucial for sustaining profitability and continued growth. Bio-Techne Corp's consistent performance in these ratios indicates effective asset management and operational efficiency.