Teleflex Incorporated (TFX)

Short-term

Turnover ratios

The inventory turnover ratio for Teleflex Incorporated has shown fluctuations over the years, ranging from 2.08 to 2.64. Generally, a higher inventory turnover ratio indicates that the company is effectively managing its inventory, selling products quickly, and minimizing excess inventory levels. However, the slight decrease in the ratio towards the end of the period might suggest a need for closer monitoring of inventory levels and sales trends.

In contrast, the receivables turnover ratio and payables turnover ratio were not provided, indicating insufficient data to assess the efficiency of Teleflex's collections and payment processes. Ideally, a higher receivables turnover ratio implies that the company is collecting its receivables quickly, while a higher payables turnover ratio suggests that the company is effectively managing its payable obligations.

The working capital turnover ratio, on the other hand, has shown varying trends over the periods, with values ranging from 1.96 to 3.75. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue. The fluctuation in this ratio may reflect changes in the company's operational efficiency and effectiveness in utilizing its working capital resources.

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

---

Average number of days

Based on the provided data, let's analyze the activity ratios of Teleflex Incorporated:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have shown some fluctuations over the years, ranging from 138.37 days to 176.59 days.
- A decreasing trend is observed from December 31, 2022, to December 31, 2024, indicating that inventory turnover has improved.
- However, the sudden increase in DOH from March 31, 2024, to June 30, 2024, followed by a decrease by the end of the year, may warrant further investigation into inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on days of sales outstanding for any period, suggesting that specific details about credit management and accounts receivable turnover are not available for analysis.

3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not provided in the data, which limits the analysis of the company's payment terms and working capital management related to accounts payable.

In conclusion, while we can assess the efficiency of Teleflex's inventory management through the DOH ratio, the lack of data on DSO and payables hinders a comprehensive evaluation of the company's overall activity ratios and working capital cycle management. Further information would be needed to provide a more thorough analysis of Teleflex's operational performance in terms of managing inventory, receivables, and payables effectively.

---

Long-term

Based on the provided data, Teleflex Incorporated's fixed asset turnover ratio has shown some fluctuations over the years. The ratio decreased from 6.11 in March 2020 to 4.76 in June 2021, indicating a decline in the efficiency of utilizing fixed assets to generate sales. However, there was a notable improvement in the ratio by March 2022, reaching 6.46, which suggests better management of fixed assets in generating revenue.

In contrast, the total asset turnover ratio remained relatively stable over the period, ranging from 0.35 in December 2020 to 0.43 by December 2024. This consistency indicates that Teleflex has been efficiently generating sales revenue relative to its total assets, with a slight upward trend observed in recent years.

Overall, the fluctuations in the fixed asset turnover ratio suggest varying levels of efficiency in utilizing fixed assets to generate sales, while the stability in the total asset turnover ratio indicates consistent overall efficiency in revenue generation relative to total assets.