Box Inc (BOX)

Activity ratios

Short-term

Turnover ratios

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Inventory turnover — 17.29 16.97 16.62 16.16 16.94 17.16 17.22 — — — 10.99 13.01 9.64 9.88 9.69 10.75 16.62 16.48 16.45
Receivables turnover 3.70 6.20 6.18 7.60 3.76 5.50 5.67 7.79 3.42 5.46 6.08 7.07 3.39 6.57 6.02 7.29 3.34 6.29 5.60 6.80
Payables turnover — — — — — — — — — — — — 150.16 94.28 60.28 60.08 31.08 43.41 34.92 50.47
Working capital turnover 6.39 9.09 10.29 9.12 10.94 16.41 54.64 8.89 4.44 2.49 1.81 3.35 2.90 — — — — — — —

The analysis of Box Inc's activity ratios reveals the following insights:

1. Inventory turnover: Box Inc has maintained a consistent level of inventory turnover over the periods reported, with ratios ranging from 16.16 to 17.29. This indicates that the company efficiently manages its inventory by quickly converting it into sales.

2. Receivables turnover: The receivables turnover ratios fluctuate from 3.34 to 7.79, indicating variability in how quickly Box Inc collects payments from customers. An increasing trend in this ratio could suggest improving credit policies or effective collection efforts.

3. Payables turnover: The payables turnover ratios show a significant increase over the periods, with values ranging from 31.08 to 150.16. This indicates that Box Inc is paying its suppliers at a faster rate, which could be due to renegotiated payment terms or improved cash flow management.

4. Working capital turnover: The working capital turnover ratios vary notably, with values ranging from 1.81 to 54.64. A higher ratio signifies that Box Inc is generating revenue more efficiently relative to its working capital, which could indicate good operational performance.

Overall, the analysis of Box Inc's activity ratios suggests that the company effectively manages its inventory, collection of receivables, and payments to suppliers. The fluctuations in these ratios over time provide valuable insights into the company's operating efficiency and financial health.

Average number of days

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Days of inventory on hand (DOH) days — 21.11 21.50 21.97 22.58 21.54 21.27 21.20 — — — 33.20 28.05 37.85 36.94 37.65 33.97 21.96 22.15 22.18
Days of sales outstanding (DSO) days 98.73 58.90 59.04 48.05 97.09 66.41 64.37 46.83 106.61 66.81 60.08 51.66 107.74 55.59 60.63 50.09 109.20 58.01 65.14 53.70
Number of days of payables days — — — — — — — — — — — — 2.43 3.87 6.06 6.08 11.74 8.41 10.45 7.23

The Days of Inventory on Hand (DOH) for Box Inc have been relatively stable over the past five quarters, ranging from 21.11 days to 22.58 days. This indicates that Box Inc has been effectively managing its inventory levels, ensuring that it does not hold excess inventory that could tie up capital.

The Days of Sales Outstanding (DSO) for Box Inc have fluctuated significantly over the same period, ranging from 46.83 days to 109.20 days. This suggests that Box Inc may have varying payment terms with its customers or could be experiencing challenges in collecting payments in a timely manner.

The Number of Days of Payables for Box Inc have shown a decreasing trend over the past five quarters, decreasing from 11.74 days to 7.23 days. This could indicate that Box Inc is paying its suppliers more quickly, which may impact its liquidity position.

Overall, Box Inc's activity ratios suggest that the company is effectively managing its inventory levels but may need to focus on improving its collection process to reduce the number of days of sales outstanding. Additionally, the decreasing trend in the number of days of payables could have implications for the company's cash flow management.

Long-term

Jan 31, 2024 Oct 31, 2023 Jul 31, 2023 Apr 30, 2023 Jan 31, 2023 Oct 31, 2022 Jul 31, 2022 Apr 30, 2022 Jan 31, 2022 Oct 31, 2021 Jul 31, 2021 Apr 30, 2021 Jan 31, 2021 Oct 31, 2020 Jul 31, 2020 Apr 30, 2020 Jan 31, 2020 Oct 31, 2019 Jul 31, 2019 Apr 30, 2019
Fixed asset turnover 33.19 23.40 18.85 15.86 14.21 14.32 12.02 9.92 8.30 7.20 6.20 5.43 4.83 4.37 3.97 3.76 3.67 3.59 4.08 4.16
Total asset turnover 0.84 1.00 0.96 0.91 0.82 0.92 0.89 0.78 0.63 0.60 0.54 0.61 0.57 0.81 0.77 0.76 0.73 0.81 0.80 0.77

The fixed asset turnover ratio for Box Inc has decreased from 33.19 in January 2024 to 4.16 in October 2019. This indicates that the company is generating less revenue from its fixed assets over time, reflecting a potential decline in efficiency in utilizing its long-term assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated over the same period, with a high of 1.00 in October 2023 and a low of 0.54 in July 2021. This ratio measures how effectively the company is using all its assets to generate revenue. The downward trend in total asset turnover from 2023 to 2021 may suggest a decrease in overall asset efficiency.

Overall, the long-term activity ratios suggest that Box Inc may be facing challenges in maximizing the revenue generation potential of both its fixed and total assets. The company may need to focus on improving asset utilization efficiency to enhance its financial performance in the long term.