The Andersons Inc (ANDE)

Short-term

Turnover ratios

The inventory turnover ratio for The Andersons Inc has shown an increasing trend over the years, starting at 5.95 in 2020 and reaching 12.00 in 2023 before slightly dipping to 8.21 in 2024. This indicates that the company is managing its inventory more efficiently, with goods being sold and replaced at a faster rate.

Similarly, the receivables turnover ratio has also displayed a positive trend, increasing from 12.12 in 2020 to 19.34 in 2023, showing that the company is collecting its accounts receivable more effectively. Although there was a slight decrease to 14.72 in 2024, the overall trend remains positive.

The payables turnover ratio data is not available for any of the years, indicating that specific information on the company's payments to suppliers relative to its purchases is not provided in the dataset.

The working capital turnover ratio for The Andersons Inc fluctuated over the years, starting at 16.64 in 2020, dropping to 10.06 in 2024. This ratio reflects how efficiently the company is using its working capital to generate sales revenue. A decreasing trend in this ratio could suggest potential inefficiencies in utilizing working capital resources.

Overall, based on the activity ratios analyzed, The Andersons Inc seems to be effectively managing its inventory and accounts receivable, but the trend in working capital turnover warrants further investigation for possible inefficiencies in utilizing working capital resources.

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Average number of days

Based on the provided data for The Andersons Inc from 2020 to 2024:

1. Days of Inventory on Hand (DOH):
- The company's DOH decreased from 61.31 days in 2020 to 30.41 days in 2023, indicating a significant improvement in managing its inventory levels efficiently.
- However, in 2024, the DOH increased to 44.46 days, suggesting a slight increase in inventory holding period compared to the previous year.

2. Days of Sales Outstanding (DSO):
- The DSO decreased from 30.12 days in 2020 to 18.87 days in 2023, showing that the company improved its collection process and converted sales into cash more effectively.
- In 2024, the DSO increased slightly to 24.79 days, indicating a longer period to collect sales compared to the previous year.

3. Number of Days of Payables:
- The data provided shows that the company did not have payable days reported for any of the years.
- This may suggest that The Andersons Inc has managed to maintain a policy of paying its dues promptly without any significant delay or extension.

Overall, the decreasing trend in DOH and DSO over the years indicates better inventory and accounts receivable management for The Andersons Inc. The consistent absence of payable days data may indicate a quick payment cycle, ensuring good relationships with suppliers and potentially advantageous terms. However, the slight increase in inventory days and DSO in 2024 warrants monitoring to ensure continued efficiency in working capital management.

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Long-term

The Andersons Inc's fixed asset turnover ratio has shown a significant improvement over the years, increasing from 9.37 in 2020 to a peak of 22.72 in 2022 before declining slightly to 21.27 in 2023 and further to 12.97 in 2024. This indicates that the company has been able to generate more revenue relative to its fixed assets invested in the business.

In contrast, The Andersons Inc's total asset turnover ratio has also displayed a positive trend, rising steadily from 1.89 in 2020 to 3.83 in 2023 before slightly dropping to 2.73 in 2024. This suggests that the company has been efficient in utilizing its total assets to generate sales, indicating good asset management.

Overall, the company's long-term activity ratios reflect an effective utilization of both fixed and total assets to drive revenue growth, although there was a slight dip in performance in the most recent year.