ANGI Homeservices Inc (ANGI)

Short-term

Turnover ratios

The activity ratios for ANGI Homeservices Inc over the period from December 31, 2020, to December 31, 2024, reveal several notable trends.

Starting with inventory turnover, the data indicates a consistent absence of inventory across all periods, suggesting that the company operates with negligible or no inventory holdings. This likely reflects the nature of its business model, which primarily involves service-based operations rather than product inventory management.

Receivables turnover shows variability with a general increasing trend toward the most recent period. It decreased notably from 34.02 times in 2020 to 19.97 times in 2021, then increased to 26.28 times in 2022 and slightly further to 26.59 times in 2023, reaching 32.32 times in 2024. This upward trend suggests an improvement in the company's efficiency in collecting receivables, potentially indicating enhanced credit policies or more effective collection practices.

Payables turnover experienced fluctuations, increasing markedly from 5.63 times in 2020 to a peak of 14.41 times in 2022, then declining sharply to 2.12 times in 2023 before modestly rising to 3.14 times in 2024. The sharp decrease post-2022 indicates a lengthening of the payment period to suppliers, which could be a strategic decision to optimize cash flow, though it may also impact supplier relationships or reflect changes in credit terms.

The working capital turnover ratio demonstrates a rising trend from 1.97 times in 2020 to 9.34 times in 2022, followed by a gradual decline to 5.94 times in 2023 and further down to 4.50 times in 2024. This pattern suggests that the company's efficiency in generating sales from its working capital improved significantly up to 2022 but experienced a reduction thereafter, possibly due to changes in sales volumes, operational costs, or shifts in working capital management strategies.

Overall, these activity ratios reflect a company that operates with minimal inventory, has improved its receivables collection efficiency over time, adjusted its payables management notably after 2022, and experienced fluctuations in working capital utilization, likely influenced by strategic operational decisions and market conditions.

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Average number of days

The activity ratios for ANGI Homeservices Inc reveal several key insights into the company's operational efficiency over the period up to December 31, 2024. Notably, the days of inventory on hand (DOH) are reported as undefined across all years, possibly indicating that inventory holdings are minimal or not tracked in a manner that yields a meaningful DOH measure. Consequently, inventory turnover is not a significant factor in their operational activities.

The days of sales outstanding (DSO) demonstrate fluctuation over the observed years. Starting at 10.73 days in December 2020, the DSO increased to a peak of 18.27 days in December 2021, indicating a slowdown in receivables collection or extended customer credit terms during that period. Subsequently, the DSO decreased to 13.89 days in December 2022, then slightly less to 13.73 days in December 2023, and further declined to 11.29 days in December 2024. The overall trend suggests an improvement in collection efficiency, especially evident in 2024, where receivables are being collected more promptly.

In terms of accounts payable, there is considerable variation over the years. The number of days of payables was 64.89 days at the end of 2020, decreasing significantly to 43.52 days in 2021, and further to 25.32 days in 2022. Conversely, a sharp increase occurred in 2023, with payables extending to 171.96 days, before decreasing again to 116.13 days in 2024. The dramatic spikes in 2023 indicate a possible change in credit terms negotiated with suppliers or shifts in payment policies, possibly aiming to optimize cash flow.

Overall, the activity ratios reflect that ANGI Homeservices Inc has maintained relatively stable collection periods in recent years, with the DSO improving towards shorter collection cycles. The accounts payable period exhibits high variability, especially in 2023, which points toward strategic or operational adjustments affecting payment timing. The absence of inventory data suggests that inventory management is not a prominent aspect of the company's operational cycle, or that inventory turnover is not significant enough to report. These combined factors offer an overarching view of the company's cash conversion cycle and operational liquidity management over the analyzed period.

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Long-term

The analysis of ANGI Homeservices Inc's long-term activity ratios reveals notable trends in asset utilization over the specified periods.

Starting with the fixed asset turnover ratio, which measures how effectively the company utilizes its fixed assets to generate sales, there was a consistent increase from 13.49 times on December 31, 2020, to 14.25 times on December 31, 2021. This suggests an improvement in the company's efficiency in leveraging its fixed assets during this period. However, this upward trend was interrupted in 2022, with the ratio decreasing to 12.29 times, indicating a decline in the effective use of fixed assets compared to previous periods. The data for 2023 and 2024 is unavailable, limiting further trend analysis for these years.

Regarding the total asset turnover ratio, which reflects the overall efficiency of the company in using all its assets to produce sales, there was a gradual increase from 0.62 on December 31, 2020, to 0.84 on December 31, 2021, and further to 0.99 on December 31, 2022. This progression signifies a steady enhancement in asset utilization efficiency over these years. Nonetheless, a decline was observed in 2023, with the ratio decreasing to 0.73, followed by a further reduction to 0.65 in 2024. This pattern indicates a reduction in overall asset efficiency in generating sales in the most recent years.

In summary, the company's fixed asset turnover ratio demonstrated overall improvement in the earlier period before slipping in 2022, while the total asset turnover ratio showed a consistent rise until 2022, followed by a decline in subsequent years. These trends suggest that while there was initial progress in asset utilization efficiency, recent years have experienced a decrease, possibly reflecting shifts in operational efficiency, asset base structure, or sales-generation capabilities.