TechTarget, Inc. Common Stock (TTGT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 3.60 | 5.86 | 4.93 | 5.16 | 3.69 |
| Payables turnover | 10.08 | 0.01 | 23.80 | 18.82 | 8.68 |
| Working capital turnover | — | 0.69 | 0.80 | 0.72 | 1.82 |
Based on the provided data, we can analyze TechTarget, Inc.'s Common Stock activity ratios as follows:
1. Inventory Turnover:
- The inventory turnover ratio for TechTarget, Inc. is not available for all the years provided. This suggests that the company may not heavily rely on maintaining inventory levels as part of its operations.
2. Receivables Turnover:
- The receivables turnover indicates how efficiently a company is collecting on credit sales. TechTarget, Inc. had a receivables turnover of 3.69 in 2020, which increased to 5.16 in 2021, and further improved to 4.93 in 2022. The company's ability to collect on credit sales decreased slightly to 5.86 in 2023. Overall, the trend indicates an improvement in collecting receivables efficiently.
3. Payables Turnover:
- The payables turnover ratio represents how quickly a company pays its suppliers. TechTarget, Inc. had a payables turnover of 8.68 in 2020, which significantly increased to 18.82 in 2021 and further improved to 23.80 in 2022. However, the payables turnover dropped sharply to 0.01 in 2023, indicating a significant increase in the average payment period to suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. TechTarget, Inc. had a working capital turnover of 1.82 in 2020, which decreased to 0.72 in 2021 and slightly improved to 0.80 in 2022. The ratio decreased further to 0.69 in 2023, indicating a decrease in the efficiency of utilizing working capital to generate revenue.
In conclusion, TechTarget, Inc. has shown improvements in receivables turnover over the years, suggesting efficient collections on credit sales. However, the payables turnover and working capital turnover ratios have shown fluctuations, indicating changes in payment periods to suppliers and efficiency in utilizing working capital for revenue generation. Further analysis of these ratios in conjunction with other financial metrics would provide a more comprehensive understanding of the company's operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 101.26 | 62.28 | 74.06 | 70.80 | 98.85 |
| Number of days of payables | days | 36.21 | 25,511.58 | 15.34 | 19.39 | 42.06 |
TechTarget, Inc. Common Stock's Days of Inventory on Hand (DOH) ratio has been consistent at an "— days" level from 2020 to 2024, indicating that the company is effectively managing its inventory levels without holding excess stock.
The Days of Sales Outstanding (DSO) ratio for TechTarget decreased from 98.85 days in 2020 to 62.28 days in 2023, suggesting a more efficient collections process and shorter time to collect accounts receivable. The decrease in DSO indicates that the company is converting its sales into cash more quickly over the years.
In contrast, the Number of Days of Payables ratio for TechTarget decreased significantly from 2020 to 2022 (42.06 days to 15.34 days), indicating that the company is taking longer to pay its suppliers. However, there seems to be an anomaly in the data for 2023, showing 25,511.58 days for payables, which might be a data entry error or anomaly requiring further investigation as such a high number is not realistic.
Overall, based on the trend in these activity ratios, TechTarget has been able to effectively manage its working capital components to improve efficiency and liquidity over the years, with the exception of the unusual data point for payables in 2023.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 6.99 | 6.26 | 3.74 |
| Total asset turnover | 0.13 | 0.33 | 0.39 | 0.33 | 0.32 |
The fixed asset turnover ratio measures how efficiently a company is using its fixed assets to generate revenue. Looking at the data provided for TechTarget, Inc. Common Stock, we see a positive trend in the fixed asset turnover ratio over the years.
In 2020, the fixed asset turnover ratio was 3.74, indicating that for every dollar of fixed assets, the company generated $3.74 in revenue. This ratio increased to 6.26 in 2021 and further to 6.99 in 2022, reflecting an improvement in the company's ability to generate sales from its fixed assets.
However, the data for 2023 and 2024 is not available, so we cannot determine the trend for these years.
In contrast, the total asset turnover ratio measures how efficiently a company is using its total assets to generate revenue. For TechTarget, Inc. Common Stock, the total asset turnover ratio was 0.32 in 2020 and increased to 0.33 in 2021. It then saw a more significant increase to 0.39 in 2022, indicating that the company was better at utilizing its total assets to generate sales.
However, there was a slight decrease in the total asset turnover ratio to 0.33 in 2023. Data for 2024 is unavailable, so its trend cannot be determined based on the information provided.
Overall, the increasing trend in the fixed asset turnover ratio and the generally improving trend in the total asset turnover ratio suggest that TechTarget, Inc. Common Stock has been able to generate more revenue efficiently from its fixed and total assets over the years, with some fluctuations that may require further investigation.