Academy Sports Outdoors Inc (ASO)

Short-term

Turnover ratios

The activity ratios of Academy Sports Outdoors Inc can provide insights into its operational efficiency and management of key operating assets. Let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times in a period the inventory is sold and replaced.
- The trend shows a gradual decrease in inventory turnover from 4.47 on January 31, 2022, to 3.02 on January 31, 2025. This suggests that the company is holding onto inventory for a longer period, which could tie up working capital and lead to potential obsolescence or carrying costs.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently the company is collecting its accounts receivable within a given period.
- The data shows sporadic and incomplete information regarding receivables turnover, making it challenging to assess the trend accurately.

3. Payables Turnover:
- The payables turnover ratio indicates how quickly the company pays its suppliers. A higher turnover implies the company is paying its suppliers more frequently.
- The trend fluctuates but generally shows consistency in paying suppliers, with the highest turnover of 9.25 on February 3, 2024. This indicates good payment management and relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company utilizes its working capital to generate sales.
- The trend shows a gradual decline in working capital turnover from 11.54 on January 31, 2022, to 7.92 on January 31, 2025. This could indicate inefficiencies in utilizing working capital to drive sales or a potential slowdown in operations.

In conclusion, while the company's payables turnover reflects good payment practices, the declining trends in inventory turnover and working capital turnover ratios raise concerns about the company's operational efficiency and management of assets. Further analysis and comparison with industry benchmarks are recommended to gain a more comprehensive understanding of Academy Sports Outdoors Inc's activity ratios.

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Average number of days

Based on the provided data, we can evaluate Academy Sports Outdoors Inc's activity ratios, focusing on days of inventory on hand (DOH), days of sales outstanding (DSO), and number of days of payables.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand represent the average number of days it takes for the company to convert its inventory into sales.
- From January 31, 2022, to January 31, 2025, we observe fluctuations in the DOH metric ranging from a low of 81.57 days to a high of 126.12 days.
- The trend shows an increase in inventory holding period over the years, peaking in October 31, 2024, reflecting potential issues related to inventory management and slower inventory turnover.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding metric indicate the average number of days it takes for the company to collect its accounts receivable.
- Data for DSO is limited, with information available only for certain periods, showing varying values such as 0.60 to 1.11 days.
- A decreasing trend in DSO could imply more efficient collections processes, although the incomplete data set limits a comprehensive analysis in this area.

3. Number of Days of Payables:
- The number of days of payables metric illustrates how long the company takes to pay its suppliers.
- Similar to DSO, the data for days of payables is intermittent, with values ranging between approximately 39.46 to 65.54 days.
- A lower number of days of payables could indicate a more aggressive approach to managing working capital, potentially impacting relationships with suppliers.

Overall, analyzing these activity ratios provides insights into Academy Sports Outdoors Inc's operational efficiency, inventory management practices, and working capital strategies. Further examination and comparison with industry benchmarks would help in assessing the company's performance in these areas in more depth.

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Long-term

The Fixed Asset Turnover ratio for Academy Sports Outdoors Inc has shown some fluctuations over the periods analyzed. It started at a high of 19.64 in January 2022, slightly increased to 19.67 in April 2022, and then decreased to 17.90 in October 2022, before reaching a low of 3.95 in July 2023. The ratio improved to 14.32 in February 2024, indicating better utilization of fixed assets.

On the other hand, the Total Asset Turnover ratio demonstrates the efficiency of the company in generating sales in relation to its total assets. It began at 1.48 in January 2022, declined to 1.32 in October 2022, and further decreased to 1.20 in October 2023. However, it rebounded to 1.36 in February 2024 before stabilizing around 1.30-1.33 in the subsequent periods.

Overall, while the Fixed Asset Turnover ratio indicates fluctuations in the efficiency of utilizing fixed assets, the Total Asset Turnover ratio shows a general trend of declining efficiency in generating sales from total assets over the periods analyzed.