Agilysys Inc (AGYS)

Short-term

Turnover ratios

Agilysys Inc's activity ratios provide insight into the efficiency of the company's operations in managing its assets and liabilities.

1. Inventory turnover:
- Agilysys Inc's inventory turnover has fluctuated over the years but remained relatively high, indicating that the company is able to sell and replace its inventory quickly. A higher inventory turnover ratio signifies efficient inventory management.

2. Receivables turnover:
- The receivables turnover ratio shows how quickly Agilysys Inc collects payments from its customers. The company's receivables turnover has been relatively stable, indicating that it effectively manages its accounts receivable. A higher ratio suggests quicker collection of receivables.

3. Payables turnover:
- Agilysys Inc's payables turnover ratio has also varied, but generally shows the company's effectiveness in managing its accounts payable. A higher payables turnover indicates that the company is paying its suppliers quickly.

4. Working capital turnover:
- The working capital turnover ratio reflects how efficiently Agilysys Inc is utilizing its working capital to generate sales. A higher working capital turnover ratio suggests that the company is effectively using its current assets to generate revenue.

Overall, the activity ratios of Agilysys Inc indicate efficient management of inventory, receivables, payables, and working capital, which are crucial for maintaining a healthy cash flow and improving profitability in the long term.

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Average number of days

Agilysys Inc's activity ratios indicate its efficiency in managing inventory, collecting receivables, and paying suppliers.

The Days of Inventory on Hand (DOH) has shown fluctuations over the past five years, ranging from as low as 2.64 days to as high as 19.08 days. A decreasing trend was observed from 2023 to 2024, suggesting a more efficient management of inventory levels and turnover.

The Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect its accounts receivable. Agilysys Inc has seen improvements in this ratio from 2020 to 2024, indicating a more prompt collection of receivables which can help improve cash flow.

The Number of Days of Payables reflects how long the company takes to pay its suppliers. Agilysys Inc has shown fluctuations in this ratio over the years, with a significant decrease from 2022 to 2023. A lower number of days of payables could indicate a more aggressive approach in paying suppliers promptly.

Overall, Agilysys Inc's activity ratios suggest improvements in inventory management and accounts receivable collection efficiency over the years, which can have positive implications for the company's cash flow and working capital management.

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Long-term

Agilysys Inc's long-term activity ratios provide insights into the efficiency with which the company utilizes its assets to generate sales. The fixed asset turnover ratio has exhibited fluctuation over the past five years but generally remained at a high level, indicating that the company efficiently generates sales using its fixed assets. In particular, the ratio peaked at 25.75 in fiscal year 2022, suggesting a significant increase in the utilization of fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown a declining trend from fiscal year 2020 to fiscal year 2024, indicating that the company's overall asset utilization efficiency has decreased over the years. A total asset turnover ratio below 1 suggests that the company generates less revenue relative to its total assets, which may imply inefficiencies in asset management or underutilization of assets.

Overall, while the fixed asset turnover ratio reflects strong efficiency in utilizing fixed assets to generate sales, the declining trend in the total asset turnover ratio may warrant further investigation into the company's overall asset management strategies and operational efficiency.