Vicor Corporation (VICR)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 2.57 2.55 2.51 2.49 2.68 2.86 2.85 2.86 3.01 3.09 3.28 3.51 3.72 3.83 4.26 4.37 3.99 3.76 3.81 3.84
Receivables turnover 7.00 6.23 6.91 6.94 7.86 6.71 6.51 6.73 6.14 13.22 13.31 13.65 13.06 6.93 6.31 6.76 7.25 6.71 5.54 6.33
Payables turnover 31.13 17.17 22.30 22.44 23.63 21.15 19.82 18.29 13.73 12.15 8.50 11.47 11.83 13.23 11.01 14.48 16.17 18.34 13.53 15.26
Working capital turnover 0.92 0.96 1.03 1.10 1.10 1.19 1.26 1.31 1.35 2.53 2.48 2.44 2.34 1.15 1.16 1.12 1.08 1.02 1.01 1.74

Activity ratios provide insights into how efficiently a company manages its assets to generate sales and cash flow. Let's analyze the activity ratios of Vicor Corporation based on the provided data:

1. Inventory Turnover:
- Vicor's inventory turnover has been gradually decreasing from 3.84 in March 2020 to 2.57 in December 2024. A decreasing inventory turnover may indicate slower sales, overstocking, or obsolete inventory.

2. Receivables Turnover:
- Vicor's receivables turnover fluctuated over the years, from 5.54 in June 2020 to a peak of 13.65 in March 2022, before decreasing to 7.00 in December 2024. A higher receivables turnover implies faster collection of accounts receivable, reflecting efficient credit management.

3. Payables Turnover:
- The payables turnover for Vicor has shown fluctuations, from 11.01 in June 2021 to 31.13 in December 2024. A higher payables turnover indicates that the company is paying its suppliers more quickly, which may impact cash flow management and supplier relationships.

4. Working Capital Turnover:
- Vicor's working capital turnover ratio has fluctuated over the years, from 1.01 in June 2020 to 2.53 in September 2022. A higher working capital turnover signifies that the company is efficiently utilizing its working capital to generate sales.

Overall, analyzing these activity ratios can help in understanding Vicor Corporation's operational efficiency, inventory management, receivables collection effectiveness, payment practices, and working capital utilization over the years. Additional qualitative analysis and comparison with industry benchmarks would provide a more comprehensive view of the company's performance.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 142.29 142.95 145.52 146.86 136.06 127.56 128.13 127.62 121.42 118.05 111.36 104.11 98.00 95.38 85.74 83.56 91.52 97.17 95.90 94.94
Days of sales outstanding (DSO) days 52.11 58.60 52.82 52.57 46.41 54.39 56.04 54.21 59.47 27.61 27.43 26.73 27.95 52.67 57.84 53.97 50.36 54.40 65.89 57.67
Number of days of payables days 11.72 21.25 16.37 16.26 15.45 17.26 18.42 19.95 26.59 30.04 42.95 31.82 30.84 27.60 33.14 25.20 22.57 19.90 26.97 23.92

Vicor Corporation's Days of Inventory on Hand (DOH) has shown an increasing trend over the past few years, indicating that inventory is being held for longer periods. This may suggest inefficiencies in inventory management or challenges in matching production with sales demand.

In terms of Days of Sales Outstanding (DSO), Vicor has experienced fluctuations in the collection period for accounts receivable. The DSO decreased significantly from December 31, 2021, to March 31, 2022, but then increased again. The variations in DSO may reflect changes in the company's credit policies or the effectiveness of its accounts receivable management.

The Number of Days of Payables indicates the average number of days it takes for Vicor to pay its suppliers. The trend shows a decreasing pattern, which could suggest that the company is taking longer to settle its payables. While a longer payment period can improve cash flow, it may strain relationships with suppliers if not managed effectively.

Overall, these activity ratios highlight areas where Vicor Corporation may need to focus on improving operational efficiency, inventory management, accounts receivable collection, and payables management to optimize cash flow and enhance overall financial performance.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 2.43 2.30 2.42 2.54 2.62 2.46 2.45 2.45 2.42 4.56 4.63 5.12 6.20 3.39 3.73 3.98 3.97 4.20 4.52 4.59
Total asset turnover 0.58 0.58 0.62 0.66 0.70 0.72 0.74 0.76 0.75 1.41 1.41 1.47 1.51 0.77 0.78 0.77 0.75 0.73 0.72 1.06

Based on the provided data, Vicor Corporation's long-term activity ratios exhibit fluctuations over the reporting periods. The Fixed Asset Turnover ratio, measuring how efficiently the company utilizes its fixed assets to generate sales, declined from 4.59 in March 2020 to 2.43 in December 2024. This decline indicates a decrease in the company's ability to generate sales relative to its investment in fixed assets.

Similarly, the Total Asset Turnover ratio, reflecting the company's overall efficiency in utilizing its total assets to generate sales, saw a decrease from 1.06 in March 2020 to 0.58 in December 2024. This declining trend indicates a reduction in Vicor Corporation's ability to generate sales relative to its total asset base.

Overall, the decreasing trend in both the Fixed Asset Turnover and Total Asset Turnover ratios suggests that Vicor Corporation may be experiencing challenges in efficiently utilizing its assets to generate revenue over the long term. It is crucial for the company to analyze the reasons behind these declines and implement strategic measures to improve its asset utilization efficiency and overall revenue generation capabilities.