TechTarget Inc (TTGT)

Short-term

Turnover ratios

Activity ratios provide insights into how effectively a company manages its assets and liabilities to generate revenue. Let's analyze the activity ratios of Techtarget Inc. based on the provided data:

1. Receivables Turnover:
- Techtarget Inc.'s receivables turnover has been steadily increasing over the past five years, indicating that the company is collecting its accounts receivable more efficiently.
- A higher receivables turnover ratio suggests that the company is converting its credit sales into cash more quickly, which is a positive sign for cash flow and liquidity management.

2. Payables Turnover:
- The payables turnover for Techtarget Inc. has fluctuated over the years but has shown an increasing trend overall.
- A higher payables turnover ratio indicates that the company is paying off its suppliers more quickly, which could imply strong vendor relationships or effective working capital management.

3. Working Capital Turnover:
- Techtarget Inc.'s working capital turnover has decreased over the past five years, indicating that the company may be using its working capital less effectively to generate sales.
- A lower working capital turnover ratio may suggest inefficiencies in managing current assets and liabilities to support sales growth.

Overall, Techtarget Inc. has shown improvements in receivables turnover and payables turnover, reflecting better management of accounts receivable and accounts payable. However, the decreasing trend in working capital turnover warrants further analysis to understand how the company is utilizing its working capital to drive revenue generation.

---

Average number of days

Days of inventory on hand (DOH) provides insight into how efficiently a company manages its inventory. Unfortunately, the data for Techtarget Inc. for DOH is not available for the years provided.

Days of sales outstanding (DSO) measures how long it takes for the company to collect its accounts receivable. A lower DSO is generally better as it indicates quicker collection of payments. Techtarget Inc.'s DSO has fluctuated over the years, with a significant improvement from 2022 to 2023 (62.28 days in 2023 compared to 74.06 days in 2022). This suggests better management of accounts receivable in the most recent year.

Number of days of payables gives an indication of how long the company takes to pay its suppliers. A longer period indicates better cash flow for the company. Techtarget Inc. has shown variations in its number of days of payables over the years, with an increase in 2023 compared to 2022 (26.64 days in 2023 compared to 15.89 days in 2022).

Overall, while the data for DOH is not available, the trend in DSO and the number of days of payables for Techtarget Inc. indicates improvements in managing accounts receivable and payables over the years.

---

Long-term

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. Techtarget Inc.'s fixed asset turnover has been relatively stable over the past five years, ranging from 9.23 to 14.07. This indicates that the company is generating revenue efficiently from its investments in fixed assets.

On the other hand, the total asset turnover ratio reflects how well a company utilizes all its assets (both fixed and current) to generate sales. Techtarget Inc.'s total asset turnover has fluctuated over the years, with the ratio being highest in 2019 at 0.60 and lowest in 2023 at 0.33. A lower total asset turnover ratio suggests that the company may not be effectively using its total assets to generate sales compared to prior years.

Overall, the trends in both fixed asset turnover and total asset turnover ratios suggest that Techtarget Inc. has been effectively utilizing its fixed assets to generate revenue, while its overall asset efficiency has shown some variability over the years. Further analysis of the underlying reasons for these fluctuations would be necessary to fully assess the company's long-term activity performance.