VeriSign Inc (VRSN)

Short-term

Turnover ratios

VeriSign Inc's activity ratios provide insights into how efficiently the company manages its assets and operations.

1. Receivables Turnover:
- The receivables turnover ratio shows how many times during the year the company collects its accounts receivable. VeriSign's receivables turnover has been decreasing from 272.53 in 2020 to 278.11 in 2024. This indicates that the company is collecting its outstanding receivables slightly faster each year.

2. Payables Turnover:
- The payables turnover ratio measures how efficiently the company pays its suppliers. VeriSign's payables turnover has fluctuated over the years, from 14.60 in 2020 to 18.06 in 2024. An increasing ratio might suggest that the company is taking longer to pay its bills, potentially improving its cash flow.

3. Working Capital Turnover:
- The working capital turnover ratio reflects how effectively the company utilizes its working capital to generate sales. VeriSign's working capital turnover has increased from 5.52 in 2020 to 6.82 in 2021. However, data for later years is unavailable. A higher ratio indicates that the company is using its working capital more efficiently to support its operations and generate revenue.

4. Inventory Turnover:
- Unfortunately, data for VeriSign's inventory turnover is unavailable for the specified years. However, a high inventory turnover ratio would indicate that the company is selling its inventory quickly, minimizing the risk of obsolete or unsold stock.

In conclusion, VeriSign Inc's activity ratios suggest that the company is managing its receivables efficiently, improving the speed of collections and possibly extending its payables turnover period. The increase in working capital turnover indicates effective utilization of resources to drive revenue. However, without data on inventory turnover, a comprehensive assessment of the company's overall asset management efficiency is hindered.

---

Average number of days

VeriSign Inc has been effectively managing its inventory levels as indicated by the consistently low Days of Inventory on Hand (DOH) over the years, remaining at 0 days. This suggests the company is efficiently turning over its inventory without excess holding costs.

In terms of collecting receivables, the Days of Sales Outstanding (DSO) metric has also been consistently low, ranging from 1.31 to 1.59 days over the five-year period. This indicates that VeriSign Inc is efficient in collecting payments from its customers, resulting in a quick turnover of accounts receivable.

On the supplier side, the Number of Days of Payables has shown some variability but generally remained relatively low, fluctuating between 17.11 to 25.00 days. This suggests that the company is able to manage its payables effectively, potentially taking advantage of favorable credit terms while remaining in good standing with its suppliers.

Overall, the activity ratios paint a picture of effective working capital management at VeriSign Inc, with efficient inventory turnover, quick collection of receivables, and effective management of payables, which collectively contribute to the company's overall liquidity and operational efficiency.

---

Long-term

VeriSign Inc's long-term fixed asset turnover has been steadily increasing over the past five years, from 5.15 in 2020 to 6.94 in 2024. This indicates that the company has been generating more revenue per dollar of fixed assets invested, which is a positive sign of operational efficiency and effective utilization of its fixed assets.

Similarly, the total asset turnover for VeriSign Inc has shown a fluctuating trend, decreasing from 0.72 in 2020 to 0.67 in 2021, then increasing to 1.11 in 2024. The increase in total asset turnover suggests that the company is generating more revenue relative to its total assets, which can indicate effective management of assets and increased efficiency in utilizing resources to drive sales.

Overall, the upward trend in fixed asset turnover and the improvement in total asset turnover for VeriSign Inc over the years demonstrate the company's ability to generate more revenue from its assets, signaling positive long-term operating performance and efficiency in asset utilization.