Vicor Corporation (VICR)

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	2.68	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	4.12	4.19	3.84	4.16
Receivables turnover	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	6.91	6.85	7.29	6.99
Payables turnover	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	22.51	20.16	19.34	19.19
Working capital turnover	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	1.77	1.89	2.06	2.19

Vicor Corp.'s activity ratios provide insights into its efficiency in managing inventory, receivables, payables, and working capital.

- Inventory turnover has been gradually decreasing from Q1 2022 to Q4 2023, indicating that Vicor Corp. took longer to sell its inventory over time. This trend suggests potential issues with inventory management or declining sales.

- Receivables turnover indicates that Vicor Corp. collects its outstanding receivables approximately 6-8 times a year from Q1 2022 to Q4 2023. A higher ratio implies efficient collection of payments from customers.

- Payables turnover shows the number of times the company pays its suppliers within a period. Vicor Corp.'s payables turnover has been increasing, which may indicate the company is taking longer to pay its debts. This could be a strategy to manage cash flow or negotiate better payment terms with suppliers.

- Working capital turnover measures how effectively the company generates revenue relative to its working capital. The slight fluctuations in this ratio from Q1 2022 to Q4 2023 suggest that Vicor Corp. has been able to generate revenue efficiently with its current level of working capital.

Overall, the analysis of Vicor Corp.'s activity ratios highlights potential areas for improvement, such as inventory management and payment strategies, while also indicating strengths in receivables collection and working capital efficiency.

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	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	88.58	87.11	95.17	87.79
Days of sales outstanding (DSO)	days	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	52.81	53.27	50.05	52.19
Number of days of payables	days	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	16.22	18.11	18.87	19.02

To analyze Vicor Corp.'s activity ratios, we will focus on three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.

1. Days of Inventory on Hand (DOH):
DOH measures the average number of days it takes for a company to sell its entire inventory. A higher DOH signifies slower inventory turnover. Vicor Corp.'s DOH has increased from 169.39 days in Q4 2022 to 194.38 days in Q4 2023, indicating an increase in the time it takes to sell inventory.

2. Days of Sales Outstanding (DSO):
DSO shows the average number of days it takes for a company to collect payment after making a sale. A higher DSO indicates slower collection of receivables. Vicor Corp.'s DSO has fluctuated, with the lowest being 47.43 days in Q4 2023 and the highest being 59.84 days in Q4 2022. A decreasing trend in DSO is generally favorable.

3. Number of Days of Payables:
This metric represents how long it takes a company to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to pay its bills. Vicor Corp.'s number of days of payables has decreased from 37.09 days in Q4 2022 to 22.07 days in Q4 2023, indicating that the company is paying its suppliers more promptly.

Overall, Vicor Corp. should strive to optimize its working capital management by reducing DOH and DSO while maintaining a balance with the number of days of payables. This would improve the efficiency of its operations and free up cash flow for future investments or operational needs.

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	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	4.63	4.86	5.08	5.24
Total asset turnover	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	1.09	1.15	1.22	1.30

The fixed asset turnover ratio for Vicor Corp. has shown a generally increasing trend over the past eight quarters, ranging from 2.33 in Q2 2022 to 2.57 in Q4 2023. This indicates that the company is becoming more efficient in generating sales revenue from its fixed assets over time. The consistently high fixed asset turnover ratio suggests that Vicor Corp. is effectively utilizing its long-term assets to generate sales.

On the other hand, the total asset turnover ratio for Vicor Corp. has fluctuated between 0.68 and 0.75 over the same period. This ratio measures the company's ability to generate sales from all its assets, both fixed and current. Although the total asset turnover ratio has not displayed a clear trend, it generally indicates that Vicor Corp. is effectively utilizing its total assets to generate sales revenue, albeit at a varying pace.

Overall, the fixed asset turnover ratio demonstrates Vicor Corp.'s efficiency in generating sales from its long-term assets, while the total asset turnover ratio reflects the company's overall effectiveness in utilizing all its assets to generate revenue.