Albertsons Companies (ACI)

Short-term

Turnover ratios

The analysis of Albertsons Companies' activity ratios over the observed period reveals several noteworthy trends:

Inventory Turnover:
The inventory turnover ratio exhibits relative stability with slight fluctuations, increasing modestly from 11.46 times in February 2021 to 11.69 times in February 2023. This indicates that the company has maintained efficient inventory management, with inventory being replaced approximately 11 to 12 times annually. The ratio further increases to 11.89 times in February 2024 before experiencing a slight decline to 11.65 times in February 2025, suggesting a consistent approach to inventory turnover with minimal volatility.

Receivables Turnover:
The receivables turnover ratio demonstrates a declining trend over the analyzed period. Starting at 126.50 times in February 2021, it increases marginally to 128.23 times in February 2022, indicating efficient collection periods. However, subsequently, the ratio declines to 112.93 times in February 2023 and further decreases to 109.38 times in February 2024, ending at 96.30 times in February 2025. This downward trend suggests a gradual extension in the collection period or a change in credit policies, which may impact cash flow management.

Payables Turnover:
The payables turnover ratio shows minor fluctuations but remains relatively stable over the period. It decreases from 14.13 times in February 2021 to 12.08 times in February 2022, then increases to 13.39 times in February 2023, further rising to 13.94 times in February 2024, and reaching 14.20 times in February 2025. The stability and slight upward trend indicate effective management of payables, with the company paying suppliers approximately every 26 to 29 days.

Working Capital Turnover:
Data for working capital turnover is available only for February 2021 and February 2022, showing a dramatic increase from 447.31 times to 4,016.03 times. This significant jump suggests an improvement in the utilization of working capital in generating sales or revenue, possibly due to operational efficiencies or strategic changes. The absence of subsequent data precludes further trend analysis.

In summary, Albertsons Companies demonstrates stability in inventory management and payables, with ratios indicating efficient operational practices. The decreasing receivables turnover ratio warrants attention, as it may reflect extended credit periods or changes in receivables collection efficiency. The substantial increase in working capital turnover between February 2021 and 2022 underscores potentially improved operational efficiencies, although limited data restricts comprehensive trend analysis beyond that period.

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Average number of days

The activity ratios of Albertsons Companies reflect its operational efficiency and management of working capital over the period from 2021 to 2025.

Days of Inventory on Hand (DOH): The company has maintained a relatively stable inventory turnover cycle, with DOH fluctuating narrowly between approximately 31.86 days in 2021 and 30.70 days in 2024. The slight decrease in 2024 suggests a marginal improvement in inventory management, potentially indicating better inventory turnover or streamlined supply chain practices. Overall, the inventory holding period has remained consistent, which may imply steady sales demand and inventory policies.

Days of Sales Outstanding (DSO): The receivables collection period has remained very brief, averaging around 2.85 days over the five-year span. There has been a modest upward trend from 2.89 days in 2021 to 3.79 days in 2025. This slight increase indicates a marginal elongation in the time it takes for the company to collect receivables, which could reflect minor changes in credit policy or customer payment behavior. Nonetheless, the overall DSO remains very low, signifying efficient receivables collection.

Number of Days of Payables: The accounts payable period has exhibited some fluctuation, decreasing from 25.83 days in 2021 to 25.70 days in 2025, with a peak at 30.22 days in 2022. The relatively stable payables period suggests consistent management of obligations to suppliers, balancing maintaining good supplier relationships with optimizing cash flow. The slight decrease over time may indicate an effort to settle payables more promptly, although overall the payables period remains within a narrow range.

Summary: Albertsons Companies demonstrates stable operational activity with slight variations that point towards steady inventory turnover, efficient cash collection, and cautious management of payables. The minimal fluctuations over the analyzed period suggest a consistent approach towards working capital management, with no significant changes in operational efficiency.

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Long-term

The analysis of Albertsons Companies' long-term activity ratios reveals notable trends over the periods from February 28, 2021, to February 28, 2023. The fixed asset turnover ratio exhibits a consistent upward trajectory, increasing from 4.52 in 2021 to 4.71 in 2022, and further climbing to 5.10 in 2023. This pattern suggests an improving efficiency in utilizing fixed assets to generate revenue, indicating that the company has been able to generate higher sales per dollar invested in fixed assets over time.

Similarly, the total asset turnover ratio demonstrates an upward trend, rising from 2.62 in 2021 to 2.56 in 2022, and reaching 2.97 in 2023. The increase from 2022 to 2023 indicates enhanced overall efficiency in employing total assets to produce sales. The ratio surpasses pre-2022 levels, suggesting that the company has optimized its asset base or increased sales relative to its asset investments.

Overall, the data reflect a positive development in Albertsons Companies’ long-term operational efficiency, with improvements in both fixed asset and total asset turnover ratios across the analyzed period. These trends may imply successful asset management strategies, expanded sales efficiencies, or both, contributing to more effective utilization of the company's asset base for revenue generation.