Box Inc (BOX)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Box Inc:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Box Inc's inventory turnover has shown fluctuation over the years.
- The ratio increased from 4.05 in April 2020 to 5.79 in October 2023, indicating an improvement in inventory management efficiency.
- However, there was a slight decrease to 5.26 in January 2023 and further to 5.40 in April 2023.
- The most recent data available for January 2025 shows an inventory turnover of 6.20, which implies a good turnover rate.

2. Receivables Turnover:
- There is no data available for the receivables turnover ratio, indicating that information on how efficiently Box Inc collects its receivables is not provided in the dataset.

3. Payables Turnover:
- Similar to receivables turnover, there is no data available for payables turnover, which would have shown how quickly Box Inc pays its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales.
- Box Inc's working capital turnover ratio shows significant fluctuations over the years, with a major increase from 2.89 in January 2021 to a peak of 54.49 in July 2022.
- The ratio then dropped to 2.86 in October 2024, indicating a decline in the efficiency of utilizing working capital.
- As of January 2025, the working capital turnover ratio stands at 6.20, reflecting a moderate improvement in using working capital effectively to generate revenue.

In conclusion, Box Inc's inventory turnover has shown varying trends over time, while data availability limits the analysis of receivables and payables turnover. The working capital turnover ratio indicates fluctuations in efficiency but shows recent signs of improvement. Tracking these activity ratios can provide insights into the company's operational performance and efficiency in managing its resources.

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Average number of days

Based on the provided data for Box Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The trend in DOH for Box Inc is as follows:
- It stood at 90.11 days as of April 30, 2020, and gradually decreased to 63.08 days as of October 31, 2023.
- The DOH value fluctuated during this period, reaching a peak of 99.04 days on April 30, 2021.
- Subsequently, DOH improved to 63.08 days by October 31, 2023, indicating a more efficient management of inventory on hand.
- However, data is missing for the periods after October 31, 2023, so the trend beyond this date cannot be determined.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data available for the Days of Sales Outstanding for Box Inc in the provided information.
- DSO is a crucial metric to assess the efficiency of the company in collecting receivables from its customers.

3. Number of Days of Payables:
- Similar to DSO, data for the Number of Days of Payables is also missing in the provided information.
- Payables turnover is an important indicator of the company's ability to manage its outstanding payments to suppliers.

In conclusion, the analysis of Box Inc's activity ratios based on the available data reveals improvements in inventory management efficiency over the period analyzed. However, the absence of information on DSO and payables turnover limits a comprehensive assessment of the company's overall operating activity performance. Further data beyond October 31, 2023, is required to provide a more complete analysis of Box Inc's activity ratios.

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Long-term

Long-term activity ratios provide insights into how efficiently a company is utilizing its assets to generate sales. In the case of Box Inc, we will analyze two key long-term activity ratios: Fixed Asset Turnover and Total Asset Turnover.

1. Fixed Asset Turnover:
Fixed Asset Turnover measures the efficiency of a company in generating sales from its fixed assets. It is calculated by dividing net sales by average fixed assets. Box Inc's Fixed Asset Turnover ratio has shown fluctuation over the years, ranging from a low of 1.88 to a high of 6.34. This indicates that the company has at times been more effective in utilizing its fixed assets to generate revenue than at other times. Overall, the trend shows an increasing pattern from 2020 to 2023, peaking at 6.34 in October 31, 2023.

2. Total Asset Turnover:
Total Asset Turnover reflects how well a company is utilizing all its assets to generate revenue. It is calculated by dividing net sales by average total assets. Box Inc's Total Asset Turnover ratio has also varied over time, with values ranging from 0.53 to 1.00. The ratio has gradually increased from 2020 to 2023, indicating that the company has become more efficient in generating sales relative to its total asset base. However, there was a slight dip in the ratio in January 31, 2024.

In conclusion, the analysis of Box Inc's long-term activity ratios suggests that the company has shown improvements in utilizing both fixed assets and total assets to generate sales over the years. The trends in both Fixed Asset Turnover and Total Asset Turnover ratios indicate increasing efficiency in asset utilization, signaling positive operational performance.