Teleflex Incorporated (TFX)

Short-term

Turnover ratios

Teleflex Incorporated's inventory turnover ratio has shown some fluctuation over the years, starting at 2.36 in 2020, increasing to 2.64 in 2021, then dropping to 2.18 in 2022, and further declining to 2.12 in 2023, before slightly improving to 2.24 in 2024. This indicates that the company is able to effectively manage its inventory levels and convert them into sales relatively efficiently.

The receivables turnover ratio data is not provided, suggesting that information regarding the company's ability to collect on its receivables is not available for the years specified. This may make it challenging to assess the effectiveness of Teleflex's credit policies and collection processes.

Similarly, data for the payables turnover ratio is also not provided, indicating a lack of information on how quickly the company pays its suppliers. This ratio is important for understanding the company's liquidity management and relationship with its vendors.

In terms of working capital turnover, Teleflex has shown a consistent ability to generate revenue relative to its working capital, with the ratio increasing from 2.88 in 2020 to 3.75 in 2021, then stabilizing around 3.36 in 2022, 3.72 in 2023, and slightly decreasing to 3.71 in 2024. This suggests that the company efficiently utilizes its working capital to support its operations and generate sales.

Overall, while the inventory turnover and working capital turnover ratios provide some insights into Teleflex's operational efficiency, the absence of data for receivables and payables turnover ratios limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Teleflex Incorporated's activity ratios provide insight into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- The trend in Teleflex's DOH shows fluctuations over the years, ranging from 138.37 days to 172.17 days. This indicates that the company takes an average of 138 to 172 days to sell its inventory or hold onto it before selling. Generally, a lower DOH is preferred as it signifies faster inventory turnover and better liquidity.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for Teleflex, which means the company's efficiency in collecting receivables cannot be evaluated using this ratio. Ideally, a lower DSO indicates quicker collection of accounts receivable and better cash flow management.

3. Number of Days of Payables:
- Similar to the DSO, the information on the number of days of payables is not provided, making it challenging to assess how long Teleflex takes to pay its suppliers. A longer period may indicate favorable terms with suppliers but could also reflect potential cash flow issues.

In conclusion, while the DOH for Teleflex showcases fluctuations in inventory turnover efficiency, the lack of data on DSO and payables limits a more comprehensive analysis of the company's overall activity ratios.

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Long-term

Teleflex Incorporated's long-term activity ratios show the efficiency of the company in utilizing its assets to generate revenue.

1. Fixed Asset Turnover:
- In 2020, the fixed asset turnover ratio was 5.35, indicating that Teleflex generated $5.35 in sales for every dollar invested in fixed assets.
- The ratio decreased to 4.90 in 2021 and further to 4.83 in 2022, suggesting a decline in the efficiency of utilizing fixed assets to generate revenue.
- The ratios for 2023 and 2024 are not available, so it is difficult to assess the trend beyond 2022.

2. Total Asset Turnover:
- The total asset turnover ratio reflects how efficiently the company is using all its assets to generate revenue.
- Teleflex's total asset turnover ratio increased from 0.35 in 2020 to 0.41 in 2021, indicating an improvement in asset utilization.
- However, the ratio decreased slightly to 0.40 in 2022 and further to 0.39 in 2023, suggesting a potential decrease in efficiency in generating sales from total assets.
- The ratio rebounded to 0.43 in 2024, indicating a possible improvement in asset utilization efficiency.

Overall, while the company's total asset turnover showed some fluctuations, the fixed asset turnover ratio declined consistently from 2020 to 2022. The company may need to assess its fixed asset investments and operational efficiency to enhance its long-term activity performance.