BJs Restaurants Inc (BJRI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 71.69 | 79.13 | 67.01 | 54.72 | 72.96 |
| Receivables turnover | 68.23 | 44.92 | 37.24 | 32.79 | 52.33 |
| Payables turnover | 15.66 | 15.79 | 15.89 | 15.46 | 34.58 |
| Working capital turnover | — | — | — | — | — |
Based on the activity ratios provided for BJs Restaurants Inc, we can draw several insights.
1. Inventory Turnover:
BJs Restaurants Inc has exhibited a relatively high inventory turnover ratio over the past five years, ranging from 54.72 to 79.13. This indicates that the company efficiently manages its inventory levels, with a high rate of inventory turnover, which is positive in terms of liquidity and operational efficiency.
2. Receivables Turnover:
The receivables turnover ratio has shown fluctuations over the years, with values ranging from 32.79 to 68.23. A higher turnover ratio suggests that BJs Restaurants Inc collects its accounts receivable more efficiently, translating into better cash flow management and potentially lower credit risk.
3. Payables Turnover:
The payables turnover ratio has been relatively stable, varying between 15.46 and 34.58. A lower ratio may indicate that the company takes longer to pay its suppliers, potentially signaling strong bargaining power or favorable credit terms.
4. Working Capital Turnover:
Unfortunately, specific data for the working capital turnover ratio is missing from the table, making it challenging to provide insights into BJs Restaurants Inc's efficiency in utilizing working capital to generate sales.
In conclusion, the activity ratios suggest that BJs Restaurants Inc effectively manages its inventory levels and accounts receivable, while also maintaining relatively consistent payment terms with suppliers. These ratios collectively reflect the company's operational efficiency and liquidity position over the analyzed period.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.09 | 4.61 | 5.45 | 6.67 | 5.00 |
| Days of sales outstanding (DSO) | days | 5.35 | 8.13 | 9.80 | 11.13 | 6.97 |
| Number of days of payables | days | 23.31 | 23.11 | 22.98 | 23.61 | 10.55 |
The activity ratios of BJs Restaurants Inc provide insights into the efficiency of the company's operational activities.
1. Days of Inventory on Hand (DOH): The company's inventory turnover has improved over the past five years, as indicated by a decrease in DOH from 6.67 days in 2020 to 5.09 days in 2023. This suggests that BJs Restaurants is managing its inventory more effectively, reducing the time it takes to sell its inventory.
2. Days of Sales Outstanding (DSO): BJs Restaurants has been able to collect its receivables more efficiently, as seen in the decreasing trend of DSO from 11.13 days in 2020 to 5.35 days in 2023. This indicates that the company is converting its sales into cash more quickly, improving its liquidity position.
3. Number of Days of Payables: BJs Restaurants has maintained a stable payment cycle over the past five years, with the number of days of payables hovering around 23 days. This implies that the company is managing its payables effectively without impacting its relationships with suppliers.
Overall, the activity ratios of BJs Restaurants suggest that the company is improving its operational efficiency by managing its inventory, receivables, and payables effectively.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.53 | 2.53 | 2.14 | 1.45 | 1.99 |
| Total asset turnover | 1.25 | 1.23 | 1.05 | 0.73 | 1.08 |
BJs Restaurants Inc has shown consistent improvement in both its fixed asset turnover and total asset turnover ratios over the past five years.
The fixed asset turnover ratio measures how efficiently the company generates sales from its fixed assets. BJs Restaurants Inc's fixed asset turnover has remained relatively stable, hovering around 2.14 to 2.53. This indicates that the company has been able to effectively utilize its fixed assets to generate sales, with a notable improvement seen in the most recent year.
The total asset turnover ratio reflects the company's ability to generate sales from all assets, including both fixed and current assets. BJs Restaurants Inc has shown a steady increase in total asset turnover over the years, indicating improved efficiency in utilizing its total assets to generate sales. The ratio has risen from 0.73 in 2020 to 1.25 in 2023, signaling a significant improvement in asset utilization efficiency.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios demonstrates BJs Restaurants Inc's effective management of its assets to drive sales growth and improve operational efficiency over the years.