ViaSat Inc (VSAT)

Short-term

Turnover ratios

ViaSat Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory turnover: ViaSat Inc's inventory turnover has shown an increasing trend over the past five years, indicating that the company is selling its inventory more frequently. In the fiscal year ending March 31, 2024, the inventory turnover ratio was 6.91, suggesting that the company turned over its inventory approximately 6.91 times during the year.

2. Receivables turnover: The receivables turnover ratio has fluctuated over the years but generally remained at a moderate level. In the most recent fiscal year, the ratio was 3.09, meaning that ViaSat Inc collects its accounts receivable about 3.09 times a year. A lower receivables turnover ratio may suggest difficulty in collecting payments from customers.

3. Payables turnover: ViaSat Inc's payables turnover ratio has also shown an upward trend, indicating that the company is paying its suppliers more frequently. A higher payables turnover ratio can suggest good relationships with suppliers or the ability to negotiate favorable payment terms. In the fiscal year ending March 31, 2024, the payables turnover ratio was 7.64.

4. Working capital turnover: The working capital turnover ratio measures how efficiently the company generates revenue from its working capital. ViaSat Inc's working capital turnover has fluctuated over the years but remained healthy, indicating that the company efficiently utilizes its working capital to generate sales. In the most recent fiscal year, the ratio was 1.33, suggesting that ViaSat Inc generated $1.33 in revenue for every dollar of working capital.

Overall, ViaSat Inc's activity ratios reflect a generally positive trend in managing its inventory, receivables, payables, and working capital efficiently. However, it is important for the company to continue monitoring and improving these ratios to ensure optimal operational performance and financial health.

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Average number of days

ViaSat Inc's activity ratios provide insight into the efficiency of the company's operations over the past five years.

1. Days of Inventory on Hand (DOH):
- The DOH decreased significantly from 207.50 days in 2021 to 52.85 days in 2024, indicating a more efficient management of inventory levels.
- The company has managed to reduce its average days of inventory on hand, which means it takes less time for ViaSat to convert its inventory into sales.

2. Days of Sales Outstanding (DSO):
- The DSO increased from 39.88 days in 2021 to 117.95 days in 2024, suggesting an increase in the average collection period for accounts receivable.
- A higher DSO may indicate potential issues with collecting payments from customers or changes in the company's credit policies.

3. Number of Days of Payables:
- The number of days of payables has shown fluctuations over the years, with a decrease from 112.28 days in 2020 to 47.75 days in 2024.
- Lower days of payables suggest that the company is paying its suppliers more quickly, which could impact cash flow and liquidity management.

Overall, the trends in ViaSat Inc's activity ratios demonstrate improvements in inventory management efficiency but also highlight potential challenges in collections and payment periods that may require further attention for optimizing working capital management.

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Long-term

The fixed asset turnover ratio indicates how efficiently a company is generating sales revenue from its investment in fixed assets. ViaSat Inc's fixed asset turnover has decreased significantly over the past five years, from 0.86 in 2020 to 0.38 in 2024. This suggests that the company is generating less revenue for every dollar invested in fixed assets, which could be a concern regarding the efficient utilization of these assets for revenue generation.

On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from its total assets. ViaSat Inc's total asset turnover also shows a declining trend over the same period, dropping from 0.46 in 2020 to 0.18 in 2024. This indicates that the company is becoming less efficient in generating sales revenue from its total assets, including both fixed and current assets.

Overall, both the fixed asset turnover and total asset turnover ratios for ViaSat Inc have declined over the past five years, suggesting a reduction in the company's efficiency in utilizing its assets to generate sales revenue. This trend could point to potential operational inefficiencies or challenges in driving top-line growth in relation to the company's asset base.