Boise Cascad Llc (BCC)

Short-term

Turnover ratios

Boise Cascade Co's activity ratios provide insight into how efficiently the company is managing its resources.

- Inventory turnover has been relatively stable, ranging from 7.59 to 9.28 over the past eight quarters. A higher turnover indicates that the company is selling its inventory more frequently, which could be a positive sign of efficient inventory management.

- Receivables turnover has varied significantly, with figures ranging from 12.39 to 26.19. A higher receivables turnover suggests that the company is collecting its receivables more quickly, which can improve cash flow and liquidity.

- Payables turnover has also shown fluctuations, with values ranging from 13.28 to 23.90. A higher payables turnover may indicate that the company is paying its suppliers more quickly, which could impact relationships with suppliers and cash flow management.

- Working capital turnover has been relatively consistent, fluctuating between 3.85 and 5.92. A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate sales, which is a positive sign of operational efficiency.

Overall, Boise Cascade Co's activity ratios show varying trends over the quarters, suggesting fluctuations in inventory management, receivables collection, payables payment, and working capital utilization. Further analysis and comparison with industry averages may provide deeper insights into the company's operational efficiency.

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Average number of days

Boise Cascade Co's activity ratios provide insights into its operational efficiency and management of inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The company's average days of inventory on hand have been increasing over the past quarters, reaching 48.07 days in Q4 2023. This indicates that Boise Cascade Co is holding inventory for a longer period before selling it, which may tie up capital and increase holding costs. It suggests a need to focus on inventory management to optimize working capital.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have fluctuated over the quarters, with a significant increase to 25.63 days in Q3 2023 before decreasing to 19.95 days in Q4 2023. Higher DSO values indicate that the company is taking longer to collect payments from customers, potentially affecting cash flow. The recent decrease is a positive sign as it shows an improvement in the efficiency of collecting receivables.

3. Number of Days of Payables:
- The number of days of payables has also varied, with an increase to 27.46 days in Q3 2023 before decreasing to 21.03 days in Q4 2023. A higher number of days of payables indicates that the company is taking longer to pay its suppliers, which can help conserve cash but may strain supplier relationships if not managed effectively. The recent decrease suggests a possible effort to balance payment terms with suppliers.

Overall, Boise Cascade Co should focus on optimizing its inventory levels, improving receivables turnover, and effectively managing payables to enhance its operational efficiency and working capital management. Periodic monitoring and adjustments to these activity ratios can help the company maintain a healthy balance between liquidity and profitability.

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Long-term

Boise Cascade Co's long-term activity ratios, specifically the fixed asset turnover and total asset turnover ratios, reflect the company's efficiency in utilizing its assets to generate revenue.

The fixed asset turnover ratio, which measures the company's ability to generate sales from its fixed assets, has been showing a decreasing trend over the past eight quarters. This could imply that Boise Cascade Co is becoming less efficient in generating revenue from its fixed assets. For example, in Q4 2023, the fixed asset turnover ratio was 7.33, indicating that the company generated $7.33 in sales for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio, which measures the company's ability to generate sales from its total assets, has fluctuated over the same period but generally remains relatively stable. A higher total asset turnover ratio suggests that the company is effectively using its assets to generate sales. For instance, in Q4 2022, the total asset turnover ratio was 2.59, indicating that the company generated $2.59 in sales for every dollar invested in total assets.

Overall, the analysis of Boise Cascade Co's long-term activity ratios suggests a need to further investigate the declining trend in the fixed asset turnover ratio to understand the factors impacting the company's asset efficiency and revenue generation capabilities.