Dentsply Sirona Inc (XRAY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.25 | 3.01 | 2.86 | 3.75 | 3.62 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 24.16 | 7.24 | 5.42 | 6.53 | 7.05 |
Inventory Turnover Ratio:
- The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times a company sells and replaces its inventory over a period.
- Dentsply Sirona Inc's inventory turnover has been quite consistent over the years, ranging from 2.86 to 3.75.
- A higher turnover ratio signifies better inventory management as the company is able to sell its products quickly, reducing the risk of obsolescence and storage costs.
- It seems that Dentsply Sirona Inc has been able to effectively manage its inventory turnover, indicating good operational efficiency in this area.
Receivables Turnover Ratio:
- The receivables turnover ratio measures how efficiently a company collects outstanding payments from its customers.
- Unfortunately, the data provided does not include receivables turnover figures for Dentsply Sirona Inc, indicating a lack of detail in understanding the efficiency of the company in collecting outstanding payments.
Payables Turnover Ratio:
- The payables turnover ratio measures how well a company manages its outstanding bills and payments to suppliers.
- Similar to receivables turnover, the lack of data for payables turnover doesn't allow for an analysis of how effectively Dentsply Sirona Inc manages its payable accounts.
Working Capital Turnover Ratio:
- The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales.
- Dentsply Sirona Inc's working capital turnover has shown significant fluctuations over the years, from 5.42 to 24.16.
- A higher turnover ratio suggests that the company is effectively using its working capital to generate revenue.
- The significant increase in the working capital turnover ratio in 2024 might indicate improved efficiency in turning working capital into sales, which could signal better overall financial health and operational performance.
In conclusion, based on the available data, Dentsply Sirona Inc demonstrates good inventory turnover efficiency and a notable increase in working capital turnover in 2024, indicating a potential enhancement in the utilization of working capital to drive sales. However, the lack of information on receivables and payables turnover restricts a comprehensive analysis of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 112.19 | 121.21 | 127.50 | 97.33 | 100.94 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The activity ratios of Dentsply Sirona Inc indicate the efficiency with which the company manages its assets and liabilities.
1. Days of Inventory on Hand (DOH):
- The company's DOH has fluctuated over the years, ranging from 97.33 days to 127.50 days.
- A decreasing trend in DOH from 2021 to 2024 suggests that the company has been able to manage its inventory more efficiently, possibly through improved inventory management practices.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO for any of the years, indicating that the company may not have significant accounts receivable or that this metric is not relevant for the business.
3. Number of Days of Payables:
- Similar to DSO, there is no data available for the Number of Days of Payables, which would have provided insights into the company's payment practices and relationships with suppliers.
In summary, the analysis of Dentsply Sirona Inc's activity ratios suggests that the company has been effective in managing its inventory levels, with potential room for improvement in terms of monitoring receivables and payables.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.08 | 4.40 | 4.23 |
| Total asset turnover | 0.66 | 0.54 | 0.51 | 0.46 | 0.36 |
The long-term activity ratios for Dentsply Sirona Inc provide insights into how efficiently the company is utilizing its assets over a multi-year period.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company generates sales using its fixed assets.
- Dentsply Sirona Inc's fixed asset turnover has shown a slight increase from 4.23 in 2020 to 4.40 in 2021, indicating that the company was able to generate more revenue per dollar of fixed assets during this period.
- However, the ratio decreased to 4.08 in 2022, suggesting a potential decrease in efficiency in utilizing fixed assets in generating sales.
- The data for 2023 and 2024 is unavailable (indicated by "—"), making it challenging to assess the trend in fixed asset turnover for these years.
2. Total Asset Turnover:
- The total asset turnover ratio reflects how well a company is using all its assets to generate revenue.
- Dentsply Sirona Inc's total asset turnover ratio has exhibited a steady increase over the years, from 0.36 in 2020 to 0.66 in 2024.
- This increase indicates that the company has been able to generate more sales relative to its total asset base, suggesting improved efficiency in asset utilization for revenue generation over this period.
In conclusion, while the fixed asset turnover ratio displayed some fluctuations, the total asset turnover ratio for Dentsply Sirona Inc demonstrated a consistent improvement, suggesting better overall efficiency in utilizing its assets to generate sales across the years analyzed.