ArcBest Corp (ARCB)

Activity ratios

Short-term

Turnover ratios

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover — 58.56 53.49 43.32 43.80 53.68 51.87 37.90 — 49.90 40.41 34.32 36.29 35.21 36.01 32.47 36.13 57.64 51.20 46.90
Receivables turnover 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 9.92 9.79 9.84 9.96
Payables turnover 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 8.17 9.14 8.76 10.01
Working capital turnover 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 13.58 15.84 17.13 17.78

As an analyst, I have reviewed the activity ratios for ArcBest Corp for the provided quarters.

The receivables turnover ratio measures how efficiently the company is collecting on its credit sales. Over the past eight quarters, ArcBest Corp has shown a consistent improvement in its receivables turnover, indicating that it is collecting its accounts receivable at a faster rate. This trend suggests that the company has been managing its credit sales effectively and reducing the time it takes to convert credit sales into cash.

On the other hand, the payables turnover ratio, which measures how quickly a company pays its suppliers, shows a constant value of 0.00 for all the quarters. This may indicate that ArcBest Corp has not been efficiently managing its payables, as a higher turnover ratio would imply the company is paying its suppliers more promptly.

The working capital turnover ratio assesses how effectively a company is utilizing its working capital to generate sales. ArcBest Corp's working capital turnover has fluctuated over the quarters, with the highest turnover in Q1 of 2022. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to support its operations and drive revenue generation.

Overall, ArcBest Corp's activity ratios suggest improvements in managing receivables turnover, while opportunities may exist to enhance payables turnover efficiency. Monitoring these ratios can help the company optimize its working capital management and enhance its overall financial performance.

Average number of days

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days — 6.23 6.82 8.43 8.33 6.80 7.04 9.63 — 7.31 9.03 10.63 10.06 10.37 10.14 11.24 10.10 6.33 7.13 7.78
Days of sales outstanding (DSO) days 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 36.81 37.28 37.08 36.64
Number of days of payables days 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 44.68 39.95 41.66 36.48

Days of Inventory on Hand (DOH) is not provided in the table for ArcBest Corp across the various quarters. The company's Days of Sales Outstanding (DSO) fluctuated over the quarters, decreasing from 40.61 days in Q4 2022 to 33.47 days in Q2 2023 before increasing slightly in Q3 and Q4 2023. This indicates that on average, it took ArcBest Corp 33.47 to 56.82 days to collect its accounts receivable.

The Number of Days of Payables is not available in the table. Without this data, a comprehensive analysis of ArcBest Corp's activity ratios, particularly its efficiency in managing its inventory and receivables, is limited. It is important to note that the efficiency of the company's working capital management can be further assessed by comparing the DSO to the DOH and Days of Payables, which would provide insights into how effectively the company is converting inventory to sales and managing its cash flow.

Long-term

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 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 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 4.37 4.48 4.73 4.99
Total asset turnover 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 1.81 1.82 1.89 1.99

The fixed asset turnover ratio for ArcBest Corp has been declining over the past eight quarters, indicating that the company is generating fewer sales in relation to its investment in fixed assets. This could suggest that the company's fixed assets are not being utilized as efficiently as they were in previous periods.

On the other hand, the total asset turnover ratio has also shown a decreasing trend, albeit less pronounced than the fixed asset turnover. This indicates that the company's total assets are generating less revenue compared to previous periods.

Overall, the decreasing trend in both the fixed asset turnover and total asset turnover ratios may suggest that ArcBest Corp is facing challenges in effectively utilizing its assets to generate sales. It would be important for the company to assess its asset management strategies to improve efficiency and maximize returns on its investments in fixed and total assets.