Agilysys Inc (AGYS)

Short-term

Turnover ratios

Agilysys Inc's inventory turnover has shown a fluctuating trend over the periods provided, starting at 26.34 on June 30, 2020, and reaching a peak of 42.49 on June 30, 2021, before declining to 15.64 on December 31, 2024. This ratio indicates the company's efficiency in managing its inventory levels and converting them into sales during a given period.

The receivables turnover ratio reflects the speed at which Agilysys Inc collects outstanding receivables from its customers. The ratio has varied over time, with values ranging from 4.17 on December 31, 2020, to a peak of 8.04 on March 31, 2023. An increasing trend in this ratio generally indicates a more efficient collection process.

In terms of payables turnover, this ratio demonstrates how quickly the company is paying its suppliers. Agilysys Inc's payables turnover ratio ranged from 5.86 on September 30, 2021, to 10.01 on March 31, 2024. A decreasing trend in this ratio may suggest an improvement in the company's cash flow or negotiating better credit terms with suppliers.

The working capital turnover ratio reflects how efficiently the company is using its working capital to generate sales. Agilysys Inc's working capital turnover ratio varied from 1.78 on December 31, 2021, to a peak of 2.74 on June 30, 2023. A higher turnover ratio indicates that the company is effectively utilizing its working capital to drive revenue growth and operations.

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Average number of days

Agilysys Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH): Agilysys Inc's inventory turnover has fluctuated over the periods provided. The company started with 13.86 days of inventory on hand in June 2020, which decreased to a low of 8.59 days in March 2021 before rising to 50.10 days by December 2022. However, the DOH improved to 17.75 days by March 2024. Overall, it appears that Agilysys Inc faced challenges managing its inventory efficiently during certain periods but managed to make improvements towards the end.

2. Days of Sales Outstanding (DSO): Agilysys Inc's accounts receivable collection period shows some variation throughout the data. The DSO ranged from 56.69 days in September 2020 to a high of 82.13 days in December 2023. Notably, the company successfully reduced its DSO to 45.95 days by June 2024. This reduction suggests that Agilysys Inc improved its collection process, ensuring faster conversion of receivables into cash.

3. Number of Days of Payables: Agilysys Inc's days payable outstanding demonstrates the company's payment terms with its suppliers. The number of days of payables varied from 18.29 days in September 2020 to a peak of 62.24 days in September 2021 before stabilizing at around 50 days thereafter. This stable trend indicates that the company has been consistent in settling its payables within a reasonable time frame, maintaining working relationships with suppliers.

In conclusion, while Agilysys Inc faced inventory management challenges and accounts receivable fluctuations in the past, its recent improvements in inventory turnover and collection efficiency demonstrate a positive trend in managing its working capital effectively.

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Long-term

Agilysys Inc's long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate sales.

1. Fixed Asset Turnover: This ratio measures how well the company is generating net sales from its fixed assets. Agilysys Inc's fixed asset turnover has shown fluctuations over the periods analyzed, ranging from a low of 5.16 to a high of 19.77. The ratio indicates that the company has been able to generate increasing sales from its fixed assets, with some periods showing significantly higher turnover rates than others. It is important for Agilysys Inc to continue monitoring and improving this ratio to ensure optimal utilization of its fixed assets.

2. Total Asset Turnover: This ratio reflects how efficiently the company is using all its assets to generate revenue. Agilysys Inc's total asset turnover has also varied over the periods analyzed, ranging from 0.58 to 0.85. The fluctuations in this ratio suggest changes in the company's overall asset efficiency in generating sales. The company should aim to maintain a balance in asset turnover to ensure that its assets are being effectively utilized to drive revenue growth.

In conclusion, the analysis of Agilysys Inc's long-term activity ratios indicates varying levels of asset efficiency in generating sales over the periods studied. It is essential for the company to focus on optimizing the utilization of its assets to improve profitability and overall financial performance.