Veeco Instruments Inc (VECO)
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 | 2.03 | 1.89 | 1.95 | 2.14 | 2.33 | 2.56 | 2.64 | 2.52 | 2.56 | 2.52 | 2.47 | 2.40 | 2.42 | 2.40 | 2.58 | 2.77 | 2.77 | 2.91 | 2.91 | 4.82 |
| Receivables turnover | 6.35 | 5.19 | 4.83 | 5.26 | 5.11 | 4.37 | 4.72 | 5.04 | 5.03 | 5.39 | 4.55 | 4.93 | 5.41 | 5.08 | 6.02 | 4.84 | 8.82 | 5.34 | 6.89 | 6.23 |
| Payables turnover | 11.39 | 7.56 | 7.55 | 7.78 | 9.26 | 9.40 | 9.89 | 8.04 | 9.85 | 8.85 | 7.37 | 8.78 | 10.48 | 10.18 | 13.55 | 9.88 | 17.31 | 11.32 | 18.72 | 19.65 |
| Working capital turnover | 1.34 | 1.40 | 1.47 | 1.68 | 1.54 | 1.60 | 1.62 | 1.65 | 1.53 | 1.18 | 1.11 | 1.01 | 0.98 | 0.96 | 0.99 | 1.10 | 1.13 | 1.13 | 1.19 | 1.34 |
Veeco Instruments Inc's activity ratios provide insight into how efficiently the company is managing its assets and operations.
1. Inventory turnover: Veeco's inventory turnover has been gradually decreasing over the quarters, from 1.85 in Q4 2022 to 1.60 in Q4 2023. This decline suggests that the company is selling through its inventory at a slower rate, which could indicate excess inventory or potential issues with sales and demand.
2. Receivables turnover: Veeco's receivables turnover has fluctuated over the quarters but generally remains at a healthy level, ranging from 4.51 in Q3 2022 to 6.47 in Q4 2023. A higher turnover indicates that the company is collecting its accounts receivable more quickly, which is a positive sign of effective credit policies and efficient collection efforts.
3. Payables turnover: Veeco's payables turnover has been inconsistent but generally maintaining a level around 6 to 9 times annually. A higher turnover of payables suggests that the company is efficiently managing its accounts payables and paying off its obligations promptly, which can help to improve cash flow and relationships with suppliers.
4. Working capital turnover: Veeco's working capital turnover has fluctuated over the quarters, indicating changes in how effectively the company is utilizing its working capital to generate sales. A higher turnover ratio suggests that Veeco is efficiently using its working capital to support its operations and generate revenue.
Overall, Veeco Instruments Inc's activity ratios provide a mixed picture of its operational efficiency, with some ratios showing positive trends while others indicate potential areas for improvement, such as inventory management. Analyzing these ratios in conjunction with other financial metrics can provide a more comprehensive understanding of the company's financial performance and operational effectiveness.
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 | 179.72 | 193.30 | 186.97 | 170.79 | 156.70 | 142.54 | 138.30 | 144.85 | 142.44 | 144.56 | 147.53 | 152.30 | 150.94 | 152.05 | 141.58 | 131.76 | 131.83 | 125.56 | 125.54 | 75.75 |
| Days of sales outstanding (DSO) | days | 57.44 | 70.38 | 75.50 | 69.39 | 71.44 | 83.51 | 77.30 | 72.36 | 72.62 | 67.71 | 80.28 | 74.08 | 67.43 | 71.89 | 60.65 | 75.41 | 41.37 | 68.31 | 52.95 | 58.56 |
| Number of days of payables | days | 32.05 | 48.29 | 48.34 | 46.89 | 39.42 | 38.82 | 36.89 | 45.42 | 37.06 | 41.25 | 49.50 | 41.57 | 34.82 | 35.86 | 26.93 | 36.96 | 21.08 | 32.23 | 19.50 | 18.57 |
The activity ratios of Veeco Instruments Inc indicate the efficiency of the company in managing its inventory, receivables, and payables.
1. Days of inventory on hand (DOH):
Veeco's days of inventory on hand have increased from 197.19 days in Q4 2022 to 227.43 days in Q4 2023. This suggests that the company is holding onto its inventory for a longer period, which may tie up working capital and increase the risk of obsolescence.
2. Days of sales outstanding (DSO):
The days of sales outstanding for Veeco have fluctuated over the quarters, ranging from 56.42 days in Q4 2023 to 80.87 days in Q3 2022. A lower DSO indicates that the company is collecting receivables more quickly, while a higher DSO suggests a slower collection process, which can impact cash flow.
3. Number of days of payables:
Veeco's number of days of payables has also varied, with the company taking anywhere from 40.56 days to 60.98 days to pay its creditors. A longer number of days in payables may indicate favorable payment terms but could also signal potential liquidity issues or strained supplier relationships.
In summary, Veeco Instruments Inc should closely monitor and manage its activity ratios to ensure optimal inventory turnover, timely collection of receivables, and effective management of payables to maintain healthy working capital levels and cash flows.
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 | 5.53 | 5.37 | 5.62 | 5.58 | 5.92 | 5.76 | 5.70 | 5.55 | 5.52 | 5.85 | 6.22 | 7.07 | 6.63 | 6.19 | 5.86 | 5.64 | 5.32 | 5.00 | 5.03 | 6.00 |
| Total asset turnover | 0.53 | 0.51 | 0.51 | 0.54 | 0.56 | 0.63 | 0.65 | 0.63 | 0.61 | 0.55 | 0.52 | 0.49 | 0.48 | 0.46 | 0.47 | 0.49 | 0.49 | 0.45 | 0.46 | 0.53 |
Veeco Instruments Inc's long-term activity ratios can provide insights into how efficiently the company is utilizing its assets to generate sales.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company is using its fixed assets to generate revenue. Veeco's fixed asset turnover has been relatively stable over the past eight quarters, ranging between 5.47 and 6.02. This indicates that the company is efficiently utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio is generally preferred as it indicates that the company is generating more revenue per dollar invested in fixed assets.
2. Total Asset Turnover:
- The total asset turnover ratio reflects the company's ability to generate sales using all its assets, including both fixed and current assets. Veeco's total asset turnover ratio has shown a declining trend over the past quarters, indicating that the company has become less efficient in generating sales relative to its total assets. The ratio has decreased from 0.68 in Q2 2022 to 0.54 in Q4 2023. A decreasing total asset turnover ratio could suggest that the company may be experiencing challenges in efficiently utilizing its assets to generate revenue.
Overall, while Veeco Instruments Inc has demonstrated strong efficiency in utilizing its fixed assets to generate sales, the declining trend in the total asset turnover ratio highlights a potential area of concern regarding the company's overall asset utilization efficiency. Further analysis and investigation into the reasons behind the declining total asset turnover ratio may be warranted to identify any underlying issues impacting the company's operational efficiency.