Dentsply Sirona Inc (XRAY)

Short-term

Turnover ratios

Based on the provided data for Dentsply Sirona Inc, the analysis of the activity ratios is as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Dentsply Sirona's inventory turnover has been relatively consistent over the period, ranging from 2.74 to 3.75.
- A decreasing trend in inventory turnover could indicate overstocking or slowing sales, while an increasing trend may suggest effective inventory management.

2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly a company collects its accounts receivable. However, data is not available for Dentsply Sirona's receivables turnover, making it difficult to assess the efficiency of the company in collecting payments from customers.

3. Payables Turnover:
- Similarly, the payables turnover ratio is not provided in the data, which would have indicated how quickly the company pays its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio shows how efficiently a company utilizes its working capital to generate sales. Dentsply Sirona's working capital turnover varies significantly, with values from 2.15 to 24.16.
- A higher working capital turnover ratio typically indicates that the company is effectively using its resources to generate revenue.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into Dentsply Sirona's efficiency in managing inventory and working capital, the lack of data for receivables turnover and payables turnover limits a comprehensive assessment of the company's overall activity ratios.

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Average number of days

Based on the provided data for Dentsply Sirona Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, inventory is held before being sold.
- The trend shows an increase in the number of days of inventory on hand from 118.16 days as of March 31, 2020, reaching a peak of 133.19 days as of March 31, 2023, followed by a slight decrease to 112.25 days by December 31, 2024.
- Generally, a lower DOH indicates better inventory management efficiency as it implies faster turnover of products.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no available data for DSO provided for the analysis period.
- DSO reflects the average number of days it takes to collect revenue after a sale. A lower DSO is preferable as it indicates faster collection of accounts receivable.

3. Number of Days of Payables:
- No data is available for the number of days of payables, which could have provided insights into the average time taken to pay off obligations.
- This ratio measures how long a company takes to pay its suppliers. A higher number of days of payables could imply favorable credit terms with suppliers, although it could also signify liquidity issues if deliberate late payments are made.

In conclusion, while we can observe the trend in Days of Inventory on Hand over the years, the lack of data for Days of Sales Outstanding and Number of Days of Payables limits our ability to provide a comprehensive analysis of Dentsply Sirona Inc's activity ratios related to accounts receivable and accounts payable management.

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Long-term

Long-term activity ratios provide insight into how efficiently a company is utilizing its assets over an extended period. In the case of Dentsply Sirona Inc, we can analyze two key ratios: the Fixed Asset Turnover and Total Asset Turnover ratios.

The Fixed Asset Turnover ratio measures the company's efficiency in generating sales from its investments in fixed assets. From the data provided, it can be observed that Dentsply Sirona's Fixed Asset Turnover ratio fluctuated over the years, ranging from 4.08 to 5.22. A higher turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales.

The Total Asset Turnover ratio, on the other hand, measures the company's ability to generate sales from its total assets. Dentsply Sirona's Total Asset Turnover ratio also varied, with values ranging from 0.36 to 0.66. An increasing Total Asset Turnover ratio implies that the company is generating more sales for each dollar of assets it owns.

Overall, based on the trend of these ratios, Dentsply Sirona Inc appears to be effectively utilizing its assets to generate sales, as evidenced by the generally stable to increasing trend in both the Fixed Asset Turnover and Total Asset Turnover ratios over the years.