Dentsply Sirona Inc (XRAY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.53 | 7.89 | 3.48 | 7.46 | 6.87 |
| Receivables turnover | 5.14 | 6.18 | 0.03 | 4.91 | 5.14 |
| Payables turnover | 13.37 | 17.72 | 6.83 | 11.75 | 12.53 |
| Working capital turnover | 7.09 | 5.41 | 0.03 | 7.76 | 4.00 |
Inventory turnover measures how efficiently a company manages its inventory levels. DENTSPLY Sirona's inventory turnover has ranged from 2.86 to 3.66 over the past five years, with a higher turnover indicating that the company is selling its inventory more quickly.
Receivables turnover ratio reflects how efficiently a company collects its accounts receivable. DENTSPLY Sirona's receivables turnover has fluctuated between 4.97 and 6.21, indicating that the company has been able to collect its receivables relatively quickly.
Payables turnover ratio shows how often a company pays its suppliers. DENTSPLY Sirona's payables turnover has varied between 5.52 and 7.19, suggesting that the company has been able to manage its payables effectively.
Working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales. DENTSPLY Sirona's working capital turnover has ranged from 4.01 to 7.24, reflecting the company's efficiency in using its working capital to support its operations and generate revenues.
Overall, DENTSPLY Sirona Inc has demonstrated reasonably efficient activity ratios over the past five years, indicating effective management of its inventory, receivables, payables, and working capital to support its operations and revenue generation.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 55.86 | 46.28 | 105.01 | 48.94 | 53.17 |
| Days of sales outstanding (DSO) | days | 70.99 | 59.03 | 13,687.50 | 74.33 | 70.98 |
| Number of days of payables | days | 27.31 | 20.59 | 53.42 | 31.05 | 29.14 |
Days of inventory on hand (DOH) measures how many days on average it takes for the company to sell its inventory. A lower DOH indicates better inventory management, as inventory is being sold more quickly. DENTSPLY Sirona Inc's DOH has fluctuated over the past five years, with a peak in 2022 at 127.50 days and a low in 2021 at 99.77 days. The latest DOH at 121.21 days suggests that the company is taking slightly longer to sell its inventory compared to the previous year but has generally improved compared to 2020 and 2019.
Days of sales outstanding (DSO) measures the average number of days it takes for the company to collect payment after a sale. A lower DSO indicates faster collection of receivables. DENTSPLY Sirona Inc's DSO has varied over the years, with improvements in 2022 and 2019 compared to 2020 and 2021. The latest DSO at 63.98 days shows that the company is collecting receivables more efficiently than in the previous two years.
Number of days of payables indicates the average number of days it takes for the company to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to settle its payables. DENTSPLY Sirona Inc's payables period has also fluctuated, reaching a high in 2020 at 66.07 days and dropping in 2021 and 2022. The latest number of days of payables at 59.25 days shows that the company is currently taking slightly longer to pay its suppliers compared to 2022 but has improved compared to 2020 and 2019.
Overall, DENTSPLY Sirona Inc's activity ratios indicate improvements in inventory management and receivables collection efficiency, although there has been a slight increase in the number of days of payables. Monitoring these ratios over time can provide insights into the company's operational efficiency and effectiveness in managing working capital.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 4.86 | 5.14 | 0.03 | 4.18 | 5.01 |
| Total asset turnover | 0.53 | 0.51 | 0.00 | 0.35 | 0.47 |
The long-term activity ratios of DENTSPLY Sirona Inc provide insight into the company's efficiency in utilizing its fixed and total assets to generate sales over the years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company generates sales using its fixed assets.
- In 2023, the fixed asset turnover ratio was 4.96, indicating that for every dollar invested in fixed assets, the company generated $4.96 in sales.
- The ratio has shown a slight decrease from 2022 to 2023, suggesting a potential decrease in efficiency in utilizing fixed assets to generate revenue.
- Overall, the company has maintained relatively high fixed asset turnover ratios over the years, with the highest being in 2021 at 5.47.
2. Total Asset Turnover:
- The total asset turnover ratio reflects the company's ability to generate sales from all of its assets (fixed and current).
- In 2023, the total asset turnover ratio was 0.54, indicating that the company generated $0.54 in sales for every dollar of total assets.
- The ratio has shown an increasing trend from 2020 to 2023, suggesting an improvement in efficiency in utilizing total assets to generate revenue.
- However, the company's total asset turnover ratio is relatively low compared to the fixed asset turnover ratio, indicating that a significant portion of total assets may be comprised of fixed assets.
Overall, DENTSPLY Sirona Inc has shown varying levels of efficiency in utilizing its fixed and total assets to generate sales over the years. While the company has maintained high fixed asset turnover ratios, the total asset turnover ratios indicate room for improvement in optimizing the utilization of all assets to drive revenue generation.