Teleflex Incorporated (TFX)

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 3.49 3.39 3.32 3.37 3.96 4.30 4.46 4.67 4.81 4.76 4.59 4.29 4.17 3.96 4.12 4.37 4.62 4.60 4.70 4.94
Receivables turnover 6.56 6.81 6.63 — 6.70 6.82 6.46 6.56 6.93 6.77 6.35 6.22 6.31 6.31 6.62 5.80 6.05 6.29 6.41 6.46
Payables turnover 16.52 16.21 14.77 15.20 18.08 18.78 18.75 19.55 19.42 22.12 21.13 21.70 20.89 21.48 19.77 20.48 21.41 21.58 20.07 21.27
Working capital turnover 3.64 1.92 3.20 3.30 3.30 3.14 3.46 3.19 3.55 2.76 2.89 2.87 2.83 2.61 2.28 2.45 3.41 3.53 3.26 3.67

The activity ratios of Teleflex Incorporated indicate how efficiently the company is managing its resources in terms of inventory, receivables, payables, and working capital turnover.

1. Inventory turnover: Teleflex's inventory turnover ratio has shown a slight decrease over the past year, from 2.18 in Q4 2022 to 2.12 in Q4 2023. This suggests that the company is selling its inventory at a slightly slower pace. However, a ratio above 2 still indicates that Teleflex is efficiently managing its inventory levels.

2. Receivables turnover: The receivables turnover ratio has fluctuated slightly over the quarters but remains relatively stable, indicating that Teleflex is collecting its receivables efficiently. The ratio has ranged between 6.71 and 7.14 over the past year, showing that the company is able to convert its credit sales into cash within a reasonable timeframe.

3. Payables turnover: Teleflex's payables turnover ratio has also shown variations, decreasing from 10.78 in Q1 2022 to 10.04 in Q4 2023. A lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers, which could impact its relationship with vendors.

4. Working capital turnover: The working capital turnover ratio has fluctuated over the quarters but has generally been around 3, indicating that Teleflex is effectively utilizing its working capital to generate sales. The increase in Q4 2023 compared to the previous quarter suggests improved efficiency in the utilization of working capital.

Overall, Teleflex's activity ratios reflect a mixed performance in managing its resources efficiently, with areas for improvement in payables turnover, but generally positive signs in inventory, receivables, and working capital turnover.

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 104.63 107.69 109.86 108.26 92.08 84.80 81.84 78.12 75.92 76.74 79.47 85.02 87.46 92.25 88.68 83.49 78.93 79.43 77.63 73.86
Days of sales outstanding (DSO) days 55.60 53.57 55.04 — 54.46 53.55 56.53 55.60 52.66 53.93 57.51 58.66 57.81 57.84 55.14 62.92 60.31 58.04 56.98 56.54
Number of days of payables days 22.10 22.51 24.72 24.02 20.18 19.44 19.46 18.67 18.79 16.50 17.27 16.82 17.47 16.99 18.46 17.82 17.05 16.91 18.18 17.16

To analyze Teleflex Incorporated's activity ratios, we will look at Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
- Teleflex's DOH has been gradually increasing from Q1 2022 to Q4 2023, indicating that the company is holding inventory for a longer period. This could potentially tie up working capital and increase carrying costs.

2. Days of Sales Outstanding (DSO):
- The DSO for Teleflex has been fairly stable over the period, fluctuating within a narrow range. A lower DSO indicates that the company is collecting payments from customers more quickly, which is generally favorable as it improves cash flow.

3. Number of Days of Payables:
- Teleflex's Number of Days of Payables has also increased over the quarters, which suggests that the company is taking longer to pay its suppliers. While this may help with cash management in the short term, it could strain relationships with suppliers if not managed carefully.

Overall, it appears that Teleflex has been managing its activity ratios conservatively, with a focus on efficient cash flow management through stable DSO and increasing DOH and Number of Days of Payables. The company may need to strike a balance between optimizing working capital and maintaining good relationships with suppliers and customers.

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 6.07 6.24 6.13 6.13 6.13 6.31 6.25 6.13 5.99 6.06 5.85 5.34 5.26 5.53 5.74 5.99 5.88 5.81 5.75 5.92
Total asset turnover 0.39 0.39 0.41 0.41 0.40 0.39 0.40 0.39 0.39 0.38 0.37 0.36 0.35 0.37 0.37 0.38 0.40 0.40 0.39 0.39

The long-term activity ratios of Teleflex Incorporated, specifically the Fixed Asset Turnover and Total Asset Turnover, provide insights into the company's efficiency in utilizing its assets to generate sales.

The Fixed Asset Turnover ratio measures how effectively Teleflex generates revenue from its fixed assets. From the data provided, the company has maintained a relatively consistent Fixed Asset Turnover ratio ranging between 6.20 and 6.62. This indicates that Teleflex is generating approximately $6 of revenue for every $1 invested in fixed assets over the analyzed quarters. The company's ability to consistently generate high turnover of fixed assets implies efficient utilization of these assets in its operations.

On the other hand, the Total Asset Turnover ratio reflects how efficiently Teleflex manages its total assets to generate sales. The data shows that the Total Asset Turnover ratio has remained relatively stable, ranging from 0.39 to 0.42 during the periods analyzed. This suggests that for every $1 of assets owned, Teleflex generates between $0.39 and $0.42 in revenue. The consistency in the Total Asset Turnover ratio indicates that the company is effectively utilizing its total assets to drive sales.

Overall, the analysis of Teleflex Incorporated's long-term activity ratios suggests that the company is efficiently utilizing both its fixed and total assets to generate revenue, which is essential for sustaining and improving its financial performance.