TechTarget Inc (TTGT)
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 6.29 | 6.04 | 5.38 | 5.66 | 4.94 | 4.58 | 4.49 | 5.01 | 4.70 | 5.07 | 4.98 | 4.51 | 3.68 | 5.66 | 5.29 | 5.71 | 4.92 | 5.22 | 4.64 | 4.84 |
| Payables turnover | 42.09 | 46.05 | 69.01 | 75.47 | 69.70 | 31.56 | 29.82 | 100.17 | 56.62 | 65.02 | 43.48 | 54.09 | 27.36 | 66.61 | 56.95 | 62.27 | 50.64 | 49.53 | 95.77 | 47.39 |
| Working capital turnover | 0.74 | 0.82 | 0.78 | 0.80 | 0.80 | 0.71 | 0.69 | 0.66 | 0.65 | 2.41 | 1.96 | 1.90 | 1.82 | 1.88 | 2.13 | 2.40 | 1.88 | 1.94 | 2.12 | 2.28 |
Inventory Turnover: The data for inventory turnover is missing in all quarters, which indicates that Techtarget Inc. may have outsourced its inventory management or operates on a just-in-time inventory system, resulting in minimal or no inventory holding.
Receivables Turnover: Techtarget Inc. has shown consistent improvement in collecting receivables efficiently throughout the quarters in 2023, with a gradual increase from 4.93 in Q4 2022 to 5.86 in Q4 2023. This indicates that the company is effectively converting its accounts receivable into cash.
Payables Turnover: The payables turnover ratio has fluctuated significantly over the quarters in 2023. The company's ability to settle its payables decreased in Q3 and Q4 of 2023 compared to earlier quarters. This could suggest changes in payment terms with suppliers or difficulties in managing trade credit effectively.
Working Capital Turnover: The working capital turnover has remained relatively stable around 0.75-0.80 throughout the quarters in 2022 and 2023. This indicates that Techtarget Inc. is generating sales efficiently with the available working capital. However, a slight decrease is observed in Q4 2023, compared to the earlier quarters, which may indicate a need for closer monitoring of working capital management.
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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 58.07 | 60.45 | 67.91 | 64.52 | 73.84 | 79.75 | 81.30 | 72.87 | 77.66 | 71.93 | 73.28 | 81.00 | 99.06 | 64.45 | 69.06 | 63.98 | 74.23 | 69.99 | 78.75 | 75.36 |
| Number of days of payables | days | 8.67 | 7.93 | 5.29 | 4.84 | 5.24 | 11.56 | 12.24 | 3.64 | 6.45 | 5.61 | 8.39 | 6.75 | 13.34 | 5.48 | 6.41 | 5.86 | 7.21 | 7.37 | 3.81 | 7.70 |
The activity ratios of Techtarget Inc. provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its payables.
1. Days of Inventory on Hand (DOH): Unfortunately, there is missing data for this ratio in all the quarters provided, which limits our ability to assess how quickly the company is turning over its inventory. It would be helpful to have this information to evaluate the efficiency of Techtarget's inventory management.
2. Days of Sales Outstanding (DSO): The DSO ratio indicates that on average, it takes Techtarget approximately 62 to 74 days to collect payments from its customers. A decreasing trend in DSO over the quarters could suggest that the company is improving its credit and collection policies, resulting in quicker cash inflows from sales.
3. Number of Days of Payables: The number of days of payables shows that Techtarget takes around 14 to 38 days to pay its suppliers. A decreasing trend in the days of payables could indicate that the company is managing its payables more effectively, possibly negotiating better terms with suppliers or having more cash available to settle obligations promptly.
Overall, while the DSO and payables ratios provide some insights into Techtarget's collection and payment processes, the missing data for the DOH ratio limits a comprehensive analysis of the company's overall efficiency in managing its working capital and operational cycle.
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 | 9.90 | 10.72 | 11.39 | 12.49 | 13.26 | 12.73 | 12.92 | 12.81 | 12.83 | 13.23 | 12.02 | 11.15 | 10.84 | 10.55 | 10.43 | 10.63 | 10.77 | 10.60 | 10.46 | 10.52 |
| Total asset turnover | 0.35 | 0.38 | 0.38 | 0.39 | 0.39 | 0.36 | 0.34 | 0.32 | 0.30 | 0.45 | 0.41 | 0.36 | 0.32 | 0.60 | 0.61 | 0.64 | 0.60 | 0.60 | 0.60 | 0.60 |
Techtarget Inc.'s fixed asset turnover has been gradually decreasing over the past eight quarters, from a high of 13.22 in Q4 2022 to 9.23 in Q4 2023. This indicates that the company is generating less revenue per dollar of fixed assets, which could suggest inefficiency in asset utilization or a decrease in sales relative to fixed assets.
On the other hand, the total asset turnover has been relatively stable around the range of 0.33 to 0.39 over the same period. This indicates that the company is generating a consistent level of revenue relative to its total assets. It is important to note that a total asset turnover below 1 suggests that Techtarget Inc. is not efficiently utilizing its assets to generate revenue.
Overall, while the total asset turnover suggests reasonable efficiency in generating revenue relative to total assets, the decreasing trend in fixed asset turnover may warrant further investigation into Techtarget Inc.'s asset utilization and sales performance.