ArcBest Corp (ARCB)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Inventory turnover — 83.76 — — — 58.56 53.49 43.32 43.80 53.68 — 37.90 — 49.90 40.41 34.32 36.29 35.21 36.01 32.47
Receivables turnover 9.71 9.78 9.81 9.78 9.32 9.68 11.07 10.72 8.99 8.26 7.28 6.44 6.71 8.25 9.09 8.59 8.78 8.41 9.78 10.13
Payables turnover 10.41 8.77 8.21 8.67 8.49 7.37 7.23 7.01 6.53 5.25 4.85 4.74 4.99 6.60 7.20 7.79 8.02 6.42 7.41 8.60
Working capital turnover 433.11 161.92 35.68 31.13 24.52 20.98 21.78 22.56 24.07 21.92 26.36 37.31 54.50 10.73 12.00 11.48 11.69 12.22 6.13 6.67

ArcBest Corp's Inventory turnover has shown a fluctuating trend over the years, with the ratio ranging from a low of 32.47 to a high of 83.76. This indicates that the company is efficiently managing its inventory levels, with a significant improvement in recent periods.

The Receivables turnover ratio has also displayed variability but generally increased over time, suggesting that ArcBest Corp is collecting its receivables more quickly. This improvement indicates effective credit management practices and potential liquidity benefits.

In terms of Payables turnover, ArcBest Corp's performance has been relatively stable over the years, with a slight increase in the ratio. This trend implies that the company is taking longer to pay its suppliers, which could signal improved cash flow management but also potentially strained supplier relationships.

The Working capital turnover ratio has varied significantly, with substantial increases in recent periods. This indicates that ArcBest Corp is efficiently utilizing its working capital to generate sales, highlighting improving operational efficiency and potentially a more streamlined business operation.

Overall, ArcBest Corp's activity ratios reflect positive trends in inventory management, receivables collection, and working capital efficiency, which could enhance the company's financial performance and operational effectiveness in the future.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Days of inventory on hand (DOH) days — 4.36 — — — 6.23 6.82 8.43 8.33 6.80 — 9.63 — 7.31 9.03 10.63 10.06 10.37 10.14 11.24
Days of sales outstanding (DSO) days 37.60 37.32 37.21 37.31 39.18 37.69 32.99 34.05 40.59 44.19 50.13 56.70 54.36 44.24 40.14 42.47 41.58 43.41 37.32 36.01
Number of days of payables days 35.05 41.64 44.47 42.09 42.97 49.51 50.49 52.04 55.89 69.49 75.27 76.93 73.13 55.34 50.72 46.88 45.51 56.82 49.28 42.44

ArcBest Corp's activity ratios reflect its efficiency in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand: ArcBest's inventory management has improved steadily from 11.24 days on March 31, 2020, to 6.23 days on September 30, 2023, with a slight increase to 8.33 days on December 31, 2022. The decrease in days indicates that the company is selling its inventory faster, which is a positive sign for liquidity and working capital management.

2. Days of Sales Outstanding: The days of sales outstanding, representing the average collection period for accounts receivable, have fluctuated over the years. There was an improvement in collection efficiency from 54.36 days on December 31, 2021, to 37.60 days on December 31, 2024. The downward trend suggests that ArcBest has been more effective in collecting payments from customers.

3. Number of Days of Payables: The number of days of payables, indicating how long it takes the company to pay its suppliers, has shown some inconsistency but mostly a decreasing trend. The decrease from 76.93 days on March 31, 2022, to 35.05 days on December 31, 2024, suggests that the company is taking fewer days to settle its payables. This may indicate improved relationships with suppliers or better cash management.

Overall, the activity ratios of ArcBest Corp demonstrate a positive trend in inventory management, accounts receivable collection, and payables turnover, which collectively contribute to the company's operational efficiency and financial health.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Fixed asset turnover 3.92 4.06 4.46 4.64 4.91 5.40 5.89 6.42 6.66 7.07 6.96 6.49 5.74 5.29 5.10 4.64 4.34 4.19 4.29 4.49
Total asset turnover 1.72 1.77 1.80 1.85 1.81 1.91 2.02 2.12 2.14 2.16 2.15 2.03 1.89 1.84 1.85 1.74 1.65 1.63 1.52 1.62

The fixed asset turnover ratio for ArcBest Corp has shown a generally increasing trend from March 31, 2020, to September 30, 2022. This ratio reflects the company's ability to generate revenue from its investment in fixed assets, such as property, plant, and equipment. The peak in the ratio was observed on December 31, 2022, at 7.07, indicating that the company was generating $7.07 in revenue for every dollar invested in fixed assets. However, from March 31, 2023, to December 31, 2024, the ratio decreased, suggesting a potential decline in the efficiency of utilizing fixed assets to generate revenue.

In contrast, the total asset turnover ratio reflects ArcBest Corp's ability to generate sales from its total assets. The ratio increased from March 31, 2020, to December 31, 2022, indicating an improvement in the company's efficiency in utilizing its total assets to generate revenue. The highest total asset turnover ratio was recorded on December 31, 2022, at 2.14, meaning that the company generated $2.14 in sales for every dollar of total assets. However, from March 31, 2023, to December 31, 2024, the total asset turnover ratio experienced a decline, indicating a potential decrease in efficiency in generating sales from total assets during this period.

Overall, while the fixed asset turnover ratio showed fluctuations and a slight decline in recent periods, the total asset turnover ratio displayed a more consistent increase followed by a decline. It is important for ArcBest Corp to assess the reasons behind these fluctuations and take necessary actions to improve the efficiency of utilizing both fixed assets and total assets to enhance overall financial performance.