ANGI Homeservices Inc (ANGI)

Short-term

Turnover ratios

The activity ratios for ANGI Homeservices Inc. provide insights into the company's efficiency in managing its operational assets and working capital over the analyzed period.

Inventory Turnover:
Data availability indicates no recorded inventory turnover ratios for the period from June 30, 2020, through March 31, 2024. The ratio first appears on June 30, 2024, at 7.84, suggesting a potential stabilization or introduction of inventory management metrics at that point. This ratio indicates that, as of mid-2024, the company turns over its inventory approximately 7.84 times annually. Given the absence of historical inventory metrics, it is challenging to evaluate trends or efficiency improvements over time in inventory management.

Receivables Turnover:
The receivables turnover ratio exhibits notable fluctuations over the period. Initially, from June 30, 2020 (28.09) through September 30, 2021, the ratio generally declines, reaching a low of 16.53. This decline could indicate a lengthening in collection periods or a loosening of credit terms during this period. However, from December 31, 2021, onwards, the ratio increases significantly, peaking at 32.32 on December 31, 2024, before slightly decreasing to 27.81 in March 2025. The upward trend in recent years suggests improved collections and faster cash inflows relative to receivables outstanding, which positively impacts liquidity and operational efficiency.

Payables Turnover:
The payables turnover ratio displays considerable variability, reflecting changes in credit terms or payment practices. Early in the period, it ranges from 2.24 (June 2020) to 8.39 (December 2021), indicating periods of extended payment cycles. Subsequently, the ratio fluctuates, reaching a peak of 14.41 at December 2022, which may suggest shorter payment periods or strategic supplier negotiations. A decline thereafter, notably dipping to 2.03 by March 2025, suggests extended payment periods or delayed payments to suppliers, possibly reflecting strategic cash flow management or financial flexibility.

Working Capital Turnover:
The working capital turnover ratio shows a steady upward trajectory from 5.01 (June 2020) to a peak of 8.79 (September 2022). This indicates increasing efficiency in utilizing working capital to generate sales. Following this peak, the ratio declines gradually, reaching 4.52 by March 2025, implying a reduction in the productivity of working capital or changes in operational scale.

Overall Analysis:
The activity ratios suggest that the company’s receivables collection efficiency has improved markedly over time, particularly from late 2021 onward. Inventory turnover data for the recent periods indicates an operational shift, possibly improving inventory management. The fluctuations in payables turnover ratio highlight varying payment strategies, potentially influenced by liquidity management or supplier negotiations. The working capital efficiency has generally strengthened until late 2022, then waned slightly, perhaps reflecting strategic shifts in asset utilization or sales levels.

Overall, the observed trends portray a period of operational optimization, with enhancements in receivables collection efficiency, variability in payment practices, and temporary fluctuations in working capital utilization. The recent increase in inventory turnover ratio signals management's focus on more efficient inventory management practices, albeit based on limited historical data.

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Average number of days

The activity ratios for ANGI Homeservices Inc., based on the provided data, offer insight into the company's operational efficiency, particularly in inventory management, receivables collection, and payables management over the specified periods.

Days of Inventory on Hand (DOH):
Data for the company's inventory holding period are mostly unavailable, with the exception of the quarter ending June 30, 2024, where inventory days are reported at 46.56 days. This figure suggests that, at this point, ANGI Homeservices maintains an inventory turnover cycle of approximately one and a half months. The lack of earlier data prevents a comprehensive trend analysis; however, the presence of this figure indicates that inventory levels are generally low or inventory is not a significant component of the business model, which aligns with a service-oriented platform that may hold minimal physical inventory.

Days of Sales Outstanding (DSO):
The company's receivables collection period exhibits considerable fluctuations over time. At the beginning of the period, DSO was approximately 13 days in June 2020, reflecting a relatively prompt collection cycle. This value increased modestly to around 22 days in September 2021, then fluctuated between approximately 11 to 21 days through 2022 and 2023, suggesting generally efficient receivables management. Notably, in December 2023, DSO increased to 21.81 days, indicating a slight elongation in collection cycles. The most recent data from March 31, 2024, shows a reduction to 16.41 days, which suggests improving receivables collections. Overall, the DSO indicates that ANGI’s collection efficiency remains relatively short, generally within a three-week period, reflecting disciplined credit policies and effective cash collection practices.

Number of Days of Payables:
The company's payables period demonstrates notable variability, highlighting changing payment patterns over time. Initially, in June 2020, payables days were very high at approximately 162.74 days, implying extended payment deferrals to suppliers. This extended period decreased significantly over subsequent periods, reaching around 25 days by December 2022, which indicates a move toward more timely payments. However, in later periods, payables days increased again, with a marked rise to 94.14 days in September 2023 and an even higher value of 180.21 days in March 2025 (projected or estimated). The prolonged payables period suggests shifting supplier payment strategies, potentially influenced by liquidity considerations, negotiations, or changes in working capital management policies. The recent upward trend towards very high payables days could indicate strategic delays in payments or cash flow management challenges.

Summary:
Overall, ANGI Homeservices Inc. displays a primarily efficient receivables management pattern, with DSO consistently below three weeks. Inventory management appears to be minimal, with limited data suggesting a low inventory holding period. Payables management reflects a history of extended credit terms, with recent tendencies toward longer durations, which may point to strategic cash flow optimization or liquidity pressures. These activity ratios collectively highlight a company with a streamlined collection process, minimal inventory holdings, and flexible or variable accounts payable practices, consistent with a digital platform-based business model that relies less on physical inventory and more on efficient receivables and payables management to support operational cash flows.

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Long-term

The analysis of ANGI Homeservices Inc.'s long-term activity ratios reveals a nuanced trend over the reported periods. The fixed asset turnover ratio demonstrated relatively stable but modest fluctuations, with values generally ranging between 11.15 and 14.25 from June 2020 through March 2023. The ratio's peak was observed at 14.25 as of December 2021, indicating that the company was effectively utilizing its fixed assets to generate revenue during that period. However, subsequent periods saw a decline, reaching approximately 11.15 by September 2022 and partially recovering to around 13.29 by March 2023.

The total asset turnover ratio exhibited a more consistent upward trajectory from June 2020 through December 2022, rising from 0.73 to a high of 0.99, suggesting improved overall efficiency in using total assets to generate revenue. This upward trend coincided with a period of operational expansion or better asset utilization. Nonetheless, this ratio experienced a decline thereafter, decreasing steadily from 0.98 in March 2023 to approximately 0.62 as of March 2025, implying a diminishing efficiency in asset utilization over this period.

Overall, the data suggests that while ANGI Homeservices Inc. initially improved its efficiency in utilizing both fixed and total assets in 2021 and 2022, recent periods have seen a decline in these ratios. The decreasing trend in total asset turnover indicates that the company may be facing challenges maintaining previous efficiency levels, potentially due to increased asset base without proportional revenue growth or strategic shifts affecting asset utilization efficiency. The relatively stable fixed asset turnover in recent years indicates a consistent, though modest, use of fixed assets in generating revenue, with no significant shifts toward asset productivity improvements observed in the latest data.