The Andersons Inc (ANDE)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of The Andersons Inc:

1. Inventory Turnover:
- The inventory turnover ratio of The Andersons Inc fluctuated over the periods analyzed, ranging from a low of 5.94 in December 31, 2020, to a peak of 17.02 in June 30, 2024.
- A higher inventory turnover ratio indicates that the company is efficiently managing its inventory levels and selling products quickly.

2. Receivables Turnover:
- The receivables turnover ratio of The Andersons Inc also varied over time, with values ranging from 12.12 in December 31, 2020, to 19.36 in March 31, 2024.
- A higher receivables turnover ratio suggests that the company is effective in collecting outstanding payments from customers.

3. Payables Turnover:
- The data indicates that information on payables turnover is not available, which may suggest that the company does not have significant payables or the data is not disclosed.

4. Working Capital Turnover:
- The working capital turnover ratio of The Andersons Inc exhibited fluctuations, with values ranging from 9.84 in September 30, 2024, to 18.80 in June 30, 2021.
- A higher working capital turnover ratio signifies that the company is efficiently utilizing its working capital to generate sales.

In summary, The Andersons Inc has shown varying levels of efficiency in managing its inventory, collecting receivables, and utilizing working capital over the periods analyzed. The company's ability to effectively manage these activity ratios is crucial for its operational efficiency and overall financial health.

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Average number of days

The activity ratios of The Andersons Inc, focusing on efficiency in managing inventory, collecting receivables, and paying payables, show the following trends:

1. Days of Inventory on Hand (DOH):
- The company's average days of inventory on hand decreased from 49.78 days as of March 31, 2020, to a low of 21.45 days by June 30, 2024, indicating effective inventory management and potentially faster inventory turnover.
- The DOH metric saw fluctuations over the years, with a slight increase towards the end of the period, reaching 44.46 days by December 31, 2024. This could suggest changes in inventory holding strategies or supply chain factors.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding measure how quickly the company collects its accounts receivable. The DSO trend for The Andersons Inc shows inconsistency, with fluctuations over time.
- The DSO was relatively stable during the earlier periods, but it experienced more significant variations in the later years, reaching 24.79 days by December 31, 2024. This may indicate changes in customer credit policies or collection efficiency.

3. Number of Days of Payables:
- The dataset does not provide information on the number of days of payables for The Andersons Inc. This metric is crucial as it measures how long the company takes to pay its suppliers, impacting cash flow management and supplier relationships.
- Without data on payables, it is challenging to assess the company's payment practices and the impact on its working capital cycle.

Overall, the analysis of The Andersons Inc activity ratios suggests a focus on efficiency in managing inventory and collecting receivables. However, the lack of information on payables limits a comprehensive evaluation of the company's overall working capital management strategy.

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Long-term

The Fixed Asset Turnover ratio of The Andersons Inc has shown a consistently increasing trend from March 31, 2020, to September 30, 2022, peaking at 22.71 on December 31, 2022. This indicates that the company has been able to generate more revenue from its fixed assets over time. However, there has been a decrease in the ratio from March 31, 2023, to December 31, 2024, reaching the lowest value of 12.97. This might suggest a decrease in the efficiency of the company in utilizing its fixed assets to generate sales during this period.

On the other hand, the Total Asset Turnover ratio of The Andersons Inc fluctuated over the same period. It started at 2.13 on March 31, 2020, reached a peak of 4.71 on June 30, 2023, and then declined to 2.73 on December 31, 2024. This shows varying levels of efficiency in generating sales from all assets, both fixed and current, over the years.

In summary, the company's Fixed Asset Turnover ratio indicates an overall improvement in the efficiency of utilizing fixed assets for revenue generation, peaking in late 2022. However, the Total Asset Turnover ratio fluctuated during the same period, indicating mixed efficiency in generating sales from all assets. The decreasing trend in both ratios towards the end of the period may raise concerns about the company's asset utilization efficiency and operational performance.