Apogee Enterprises Inc (APOG)

Short-term

Turnover ratios

Apogee Enterprises Inc's activity ratios provide insights into the efficiency with which the company manages its assets and liabilities.

1. Inventory turnover:
- The inventory turnover for Apogee has been consistently high over the past five years, ranging from 12.92 to 15.16 times. This implies that the company is effectively managing its inventory levels and converting them into sales. A higher turnover indicates efficient inventory management, which can help reduce holding costs and minimize the risk of obsolete inventory.

2. Receivables turnover:
- Apogee's receivables turnover has shown a fluctuating trend, with varying values between 7.00 to 8.16 times. This ratio reflects how quickly the company collects outstanding receivables from its customers. A higher turnover indicates that Apogee is efficient in collecting payments from customers, which can improve cash flow and reduce the risk of bad debts.

3. Payables turnover:
- The payables turnover ratio for Apogee has been declining over the past five years, falling from 15.47 to 12.39 times. This indicates that the company is taking longer to pay its suppliers. While a lower turnover ratio could suggest improved bargaining power with suppliers, it may also indicate potential liquidity challenges or strained supplier relationships.

4. Working capital turnover:
- Apogee's working capital turnover has shown some variability, ranging from 9.25 to 13.21 times. This ratio reflects the efficiency with which the company is generating revenue from its working capital. A higher turnover indicates that Apogee is effectively utilizing its working capital to generate sales. However, fluctuations in this ratio may suggest changes in the company's operating cycle or working capital management practices.

Overall, the analysis of Apogee Enterprises Inc's activity ratios highlights the company's strengths in inventory management and working capital efficiency, alongside some areas of potential concern such as changes in payables turnover. Monitoring these ratios can provide valuable insights into the company's operational performance and financial health.

---

Average number of days

The activity ratios for Apogee Enterprises Inc provide insight into the efficiency of the company in managing its inventory, collecting receivables, and paying its payables.

1. Days of Inventory on Hand (DOH):
- The trend in the DOH ratio shows a slight decrease from 2019 to 2020, followed by fluctuations in the following years.
- In 2024, the company had inventory on hand for approximately 24.07 days. This indicates that the company is able to sell its inventory within the span of 24 days.
- A lower DOH is generally preferred as it implies faster inventory turnover, which can reduce carrying costs and minimize the risk of obsolescence.

2. Days of Sales Outstanding (DSO):
- The DSO ratio shows a similar trend to the DOH ratio, with fluctuations over the years.
- In 2024, the company took approximately 44.71 days to collect its receivables, indicating an improvement from the previous year.
- A lower DSO suggests that the company is efficient in collecting payments from its customers, which helps improve cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables has varied over the years, but there is a general increase from 2020 to 2024.
- In 2024, the company took around 29.47 days to pay its suppliers, which is an increase from the previous year.
- A higher number of days of payables could suggest that the company is taking longer to settle its bills, potentially indicating cash flow challenges or strained supplier relationships.

Overall, a thorough analysis of these activity ratios can provide valuable insights into Apogee Enterprises Inc's operational efficiency and effectiveness in managing its working capital.

---

Long-term

The fixed asset turnover ratio for Apogee Enterprises Inc has displayed a generally increasing trend over the past five years, which is a positive signal. This ratio indicates that the company generated $5.80 in sales for every dollar of fixed assets in the most recent fiscal year, showing an improvement compared to previous years.

On the other hand, the total asset turnover ratio has also exhibited a consistent upward trend over the same period. This ratio indicates that the company generated $1.60 in sales for every dollar of total assets in the most recent fiscal year. The increasing trend in total asset turnover suggests that Apogee Enterprises Inc has been more efficient in utilizing its total assets to generate revenues.

Overall, both the fixed asset turnover and total asset turnover ratios for Apogee Enterprises Inc point towards improving efficiency in utilizing assets to generate sales over the years. This can be an encouraging sign for investors and stakeholders, indicating that the company is becoming more effective in generating revenue from its asset base.