Bio-Techne Corp (TECH)

Short-term

Turnover ratios

The activity ratios for Bio-Techne Corp reveal insights into the company’s operational efficiency regarding inventory management, receivables collection, payables management, and working capital utilization over various periods from September 2020 through June 2025.

Inventory Turnover:
The inventory turnover ratio demonstrates a moderate overall trend with some fluctuations. Starting at 2.43 in September 2020, it gradually increased to reach a peak of 2.71 towards the end of 2021. Subsequently, the ratio experienced a declining trend, diminishing to approximately 2.11 by March 2023. From mid-2023 onward, the ratio stabilized around the 2.15 to 2.17 range, with minor fluctuations through June 2025. This pattern indicates a period of initial inventory efficiency improvements followed by a decline, potentially reflecting slower inventory liquidation or strategic inventory holding changes.

Receivables Turnover:
The receivables turnover ratio exhibits variability but generally remains within the range of about 5.00 to 6.73. It peaked at 6.73 at the end of 2021, signifying efficient collection periods, but showed a downward trend thereafter, reaching approximately 5.07 in March 2024. Thereafter, the ratio spiked to a high of 5.90 in June 2025. Frequent fluctuations suggest inconsistent receivables collection efficiency, with periods of quicker collections interspersed with slower periods, possibly influenced by changes in credit policy or customer payment behaviors.

Payables Turnover:
The payables turnover ratio displays notable volatility, with an initial range between approximately 9.46 and 14.73 up to December 2022. After that, the ratio generally declined, reaching lows of around 3.68 in June 2025. The elevated ratios in earlier periods suggest prompt payment to suppliers, whereas the sharp decrease in mid-2025 may indicate longer supplier payment cycles or cash flow adjustments, perhaps as a strategic decision to preserve liquidity.

Working Capital Turnover:
This ratio fluctuates within a relatively narrow band from 1.74 to 2.82 throughout the period. It shows a gradual increase from 1.74 in September 2020 to 2.82 in June 2025, reflecting incremental improvements in how efficiently the company utilizes its working capital to generate sales or operational activity. The period of stability in late 2023 and 2024 aligns with a consistent operational approach, with slight upward momentum indicating a potential enhancement in operational efficiency.

In summary, Bio-Techne Corp’s activity ratios suggest a dynamic operational environment, characterized by an initial phase of efficiency improvement, subsequent fluctuations in receivables and inventory management, and recent signs of increased working capital efficiency. The volatility in payables and inventory turnover, coupled with moderate shifts in receivables, points to strategic adjustments in working capital management tailored to evolving operational or market conditions.

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Average number of days

The activity ratios for Bio-Techne Corp, as reflected in the provided data, reveal trends and shifts over the period from September 2020 through June 2025, focusing on Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Days of Payables.

Days of Inventory on Hand (DOH):
The company's inventory holding period exhibited a general increasing trend over the analyzed period. Starting at approximately 150.47 days as of September 2020, DOH progressively lengthened, reaching a peak of around 184.28 days by September 2023. This indicates that Bio-Techne’s inventory remained on hand for increasingly longer periods, which can suggest either strategic stockpiling, supply chain inefficiencies, or shifts in production and demand cycles. Post-September 2023, there was a slight decline, with DOH decreasing to approximately 161.05 days by June 2025, reflecting possible efforts to optimize inventory management.

Days of Sales Outstanding (DSO):
The receivables collection period showed some variability but remained within a range of roughly 54.70 to 72.06 days. Early in the period, DSO was approximately 58.92 days in September 2020, with fluctuating values thereafter. Notably, a rise to about 70.30 days occurred around March 2023, suggesting longer collection cycles. Subsequently, a decline to approximately 61.91 days was observed by June 2025, indicating improved receivables management and more efficient cash collection processes toward the most recent period.

Number of Days of Payables:
The company's payable deferral period fluctuated from a low of around 24.77 days in December 2022 to a high of approximately 99.26 days in June 2025. The longer payables period at the latter date could imply extended credit terms negotiated with suppliers or strategic stretching of the payables to manage cash flows more effectively. Conversely, shorter periods earlier in the period suggest more prompt payments, potentially reflecting tighter liquidity conditions or supplier relationship strategies.

Overall Pattern and Implications:
The increasing trend in DOH suggests accumulation of inventory and potential inventory obsolescence risks, which warrants attention to operational efficiency. The DSO fluctuations imply that the company’s receivables management has experienced periods of delay but has generally improved in recent periods, especially by June 2025. The rising payables days indicate a strategic shift towards longer supplier credit terms, which can positively impact liquidity if managed well but may also risk strained supplier relationships if extended excessively.

These activity ratio trends collectively point towards a phase of inventory accumulation with efforts ongoing to optimize receivables and payables cycles, likely reflecting adjustments in working capital management strategies.

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Long-term

The analysis of Bio-Techne Corp's long-term activity ratios reveals the following insights:

Fixed Asset Turnover Ratio:

The fixed asset turnover ratio demonstrates variability over the analyzed period. Starting at 3.96 as of September 30, 2020, it experienced a gradual increase, reaching a peak of 5.03 by March 31, 2023 and June 30, 2023. This upward trend indicates an improvement in the efficiency of utilizing fixed assets to generate sales, with the firm generating more revenue per dollar of fixed assets over time. However, its value fluctuates, notably declining from a high of 5.03 to near 3.30 during the second half of 2021 before recovering to the 5.00+ range, signaling periods of both increased efficiency and temporary setbacks.

Total Asset Turnover Ratio:

The total asset turnover ratio exhibits a more steady and modest upward trend. Beginning at 0.37 on September 30, 2020, it gradually increased to approximately 0.48 by June 30, 2025. The ratio reflects the company’s ability to generate sales relative to its entire asset base. Although the increase is incremental, it suggests a consistent improvement in total asset efficiency over the analyzed period. Notable is the stability of the ratio from mid-2022 onwards, oscillating within a narrow band of 0.41 to 0.48, indicating a stabilization of overall asset utilization efficiency.

Overall Assessment:

Bio-Techne Corp has exhibited progressive improvements in its fixed asset utilization efficiency over the period, especially evident in the rising fixed asset turnover ratios. This trend reflects more effective deployment and management of fixed assets, possibly through modernization or better asset management strategies. Meanwhile, the total asset turnover ratio has shown a consistent, albeit slow, enhancement, indicating overall efficiency gains in utilizing total assets to generate sales.

The data also suggests that the company’s operational efficiency in asset utilization has stabilized in recent periods, maintaining stable ratios that signal mature operational practices. The absence of data beyond March 2023 in some ratios indicates either a lack of recent updates or periods of reporting hiatus, but the available data points toward a positive trend in asset productivity.

In conclusion, the long-term activity ratios of Bio-Techne Corp illustrate a trajectory of increasing efficiency in asset utilization, with fixed assets becoming more productive relative to sales, complemented by steady improvements in total asset utilization efficiency.