TTM Technologies Inc (TTMI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 10.16 | 13.55 | 16.50 | 17.79 | 22.59 |
| Receivables turnover | 10.69 | 10.59 | 11.47 | 11.45 | 10.51 |
| Payables turnover | 6.47 | 6.39 | 5.82 | 6.29 | 7.79 |
| Working capital turnover | 6.09 | 6.85 | 5.22 | 5.97 | 13.37 |
TTM Technologies Inc's inventory turnover has decreased steadily over the past five years, from 22.59 in 2019 to 10.16 in 2023. This indicates that the company is holding onto its inventory for a longer period, potentially signaling inefficiencies in inventory management or lower demand for its products.
On the other hand, the receivables turnover has shown a relatively stable trend, fluctuating slightly between 10.51 in 2019 and 10.69 in 2023. This suggests that the company has been efficient in collecting payments from its customers, with minimal changes in its receivables turnover ratio over the years.
The payables turnover ratio has also shown a decreasing trend from 7.79 in 2019 to 6.47 in 2023. This decline in payables turnover could indicate that the company is taking longer to pay off its suppliers, which may have implications for its liquidity and supplier relationships.
Additionally, the working capital turnover ratio has fluctuated, with a notable decrease from 13.37 in 2019 to 6.09 in 2023. This could suggest that TTM Technologies Inc is generating less revenue per dollar of working capital, which may point to inefficiencies in its utilization of working capital.
Overall, TTM Technologies Inc's activity ratios reveal varying trends in inventory management, accounts receivables collection, payables management, and working capital efficiency over the past five years. These ratios provide insights into the company's operational performance and efficiency in managing its assets and liabilities.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 35.93 | 26.93 | 22.13 | 20.52 | 16.16 |
| Days of sales outstanding (DSO) | days | 34.13 | 34.48 | 31.82 | 31.87 | 34.72 |
| Number of days of payables | days | 56.43 | 57.09 | 62.68 | 58.03 | 46.86 |
TTM Technologies Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers. Over the past five years:
1. Days of Inventory on Hand (DOH) have increased steadily from 16.16 days in 2019 to 35.93 days in 2023. This indicates that the company is holding inventory for a longer period, which may tie up working capital and increase carrying costs.
2. Days of Sales Outstanding (DSO) have ranged from 31.82 to 34.72 days, suggesting that TTM Technologies typically collects payments from customers within a month. Although there is slight variation, the company's collection process seems relatively stable over the years.
3. The Number of Days of Payables has fluctuated between 46.86 and 62.68 days, with an increase in 2021 followed by a slight decrease in 2023. This indicates that TTM Technologies has been paying its suppliers within two to three months on average.
Overall, TTM Technologies' activity ratios show that the company has been holding inventory for longer periods over the years, collecting receivables within a reasonable timeframe, and managing payables within a consistent range. Monitoring and potentially optimizing inventory management practices could help improve efficiency and reduce associated costs.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.48 | 6.92 | 6.66 | 6.71 | 7.81 |
| Total asset turnover | 1.33 | 1.51 | 1.46 | 1.51 | 1.49 |
Based on the long-term activity ratios of TTM Technologies Inc over the past five years, we can see a trend in the company's efficiency in utilizing its assets to generate sales.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company is utilizing its fixed assets to generate revenue.
- TTM's fixed asset turnover has been fluctuating over the years, ranging from 5.48 to 7.81.
- The downward trend from 2019 to 2023 indicates a decrease in the efficiency of generating revenue from fixed assets.
- The peak at 2019 indicates the highest efficiency in utilizing fixed assets for revenue generation.
- Despite the fluctuations, TTM has maintained a relatively high level of fixed asset turnover, suggesting effective use of its fixed assets.
2. Total Asset Turnover:
- The total asset turnover ratio assesses how well a company is using all its assets to generate revenue.
- TTM's total asset turnover has also been fluctuating over the years, with values between 1.33 and 1.51.
- The trend shows minor variations around the 1.5 mark, indicating a relatively stable efficiency in generating revenue from total assets.
- The company has been able to maintain a consistent level of total asset turnover, which suggests effective overall asset utilization to drive sales.
Overall, TTM Technologies Inc has shown a decent level of efficiency in utilizing both fixed assets and total assets to generate revenue, although there have been some fluctuations in the ratios over the years. Monitoring these ratios can help investors and stakeholders assess the company's operational performance and efficiency in asset utilization.