Apogee Enterprises Inc (APOG)

Short-term

Turnover ratios

The activity ratios of Apogee Enterprises Inc provide insights into how efficiently the company manages its resources and operations. Let's analyze the key activity ratios based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio reflects how many times a company's inventory is sold and replaced over a period. Apogee Enterprises Inc's inventory turnover has shown an improving trend over the period, indicating that the company is selling through its inventory at a faster rate. This suggests effective inventory management and potentially reduced risk of obsolete inventory.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects its accounts receivable. Apogee Enterprises Inc's receivables turnover data is incomplete, but from the available data, it suggests that the company is collecting its receivables more frequently, which could indicate good credit control and efficient cash flow management.

3. Payables Turnover:
- The payables turnover ratio evaluates how quickly a company pays its suppliers. Apogee Enterprises Inc's payables turnover data is also incomplete, but the available data indicates that the company is managing its payables effectively, with faster turnover rates, possibly leveraging favorable credit terms.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Apogee Enterprises Inc's working capital turnover has fluctuated over the period, but generally shows an improving trend. A higher turnover ratio suggests that the company is utilizing its working capital effectively to support its operations and generate sales.

In conclusion, based on the analyzed activity ratios, Apogee Enterprises Inc appears to be effectively managing its inventory, receivables, payables, and working capital, which are all crucial aspects of operational efficiency and financial performance. The improving trends in these ratios indicate that the company is achieving better operational performance and financial health over the analyzed period.

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Average number of days

Based on the provided data on Apogee Enterprises Inc's activity ratios, we can analyze the following:

1. Days of Inventory on Hand (DOH):
- Apogee Enterprises Inc's inventory management has shown improvement over time, with the number of days of inventory on hand decreasing from 30.02 days on May 28, 2022, to 26.27 days on August 31, 2024. This indicates a more efficient turnover of inventory, potentially reducing holding costs and risks of obsolescence.

2. Days of Sales Outstanding (DSO):
- The data provided shows fluctuations in Apogee Enterprises Inc's accounts receivable collection efficiency, with DSO ranging from 35.21 days on August 26, 2023, to 42.02 days on May 27, 2023. However, there are missing data points, which makes it challenging to assess the overall trend in accounts receivable turnover.

3. Number of Days of Payables:
- Apogee Enterprises Inc's payment terms with suppliers, reflected by the number of days of payables, ranged from 20.79 days on November 26, 2022, to 26.56 days on November 25, 2023. The company appears to maintain a balance between managing payable obligations and optimizing cash flow.

In conclusion, the data suggests that Apogee Enterprises Inc has been effectively managing its inventory levels and payment terms with suppliers. However, a more complete dataset for accounts receivable turnover could provide a clearer picture of the company's overall efficiency in managing working capital.

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Long-term

The long-term activity ratios for Apogee Enterprises Inc provide insight into how efficiently the company is utilizing its fixed assets and total assets to generate revenue.

- Fixed asset turnover: This ratio measures how effectively the company is generating sales revenue from its investment in fixed assets. Apogee's fixed asset turnover ratio has shown fluctuations over the period, ranging from a low of 7.18 to a high of 9.58. An increasing trend in the ratio indicates improved efficiency in utilizing fixed assets to generate sales.

- Total asset turnover: This ratio evaluates the company's ability to generate sales revenue in relation to its total assets. Apogee's total asset turnover ratio has also varied, with values ranging from 1.16 to 2.41. A higher total asset turnover ratio suggests that the company is effectively using its assets to generate sales, thereby indicating efficiency in asset utilization.

Overall, the analysis of Apogee Enterprises Inc's long-term activity ratios reveals fluctuations in efficiency in utilizing fixed assets and total assets to generate sales revenue over the period under consideration. It is important for stakeholders to monitor these ratios to assess the company's operational efficiency and asset management practices.