Cable One Inc (CABO)

Short-term

Turnover ratios

Inventory turnover is not provided in the data, presumably indicating that Cable One Inc does not hold inventory as part of its operations.

Receivables turnover has consistently decreased from 30.38 in 2019 to 17.86 in 2023. This implies a decrease in the efficiency of collecting outstanding receivables over the years. A lower turnover ratio indicates that the company takes more time to collect its accounts receivable, which could potentially lead to cash flow issues.

Payables turnover is consistently at 0.00 for all years, suggesting that the company does not have a significant accounts payable balance relative to its purchases.

Working capital turnover has shown significant fluctuations over the years, from 2.94 in 2020 to 16.64 in 2022. The substantial variations indicate changes in the efficiency of utilizing working capital to generate revenue. A higher turnover ratio shows that the company is efficiently using its working capital to support its operations and generate sales.

In summary, although Cable One Inc does not hold inventory and has a consistent payables turnover of 0.00, there are concerns about the decreasing efficiency in collecting receivables over the years. The fluctuating working capital turnover suggests varying efficiency in utilizing working capital to drive revenue generation.

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Average number of days

Based on the provided data for Cable One Inc's activity ratios:

1. Days of Inventory on Hand (DOH): Unfortunately, specific data for Days of Inventory on Hand (DOH) is not available for analysis over the past five years. DOH is a metric that shows how many days a company takes to sell its inventory. A lower DOH indicates efficient inventory management, as it implies faster turnover of inventory.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding (DSO) for Cable One Inc has been fluctuating over the past five years. The trend shows an increase from 12.02 days in 2019 to 20.44 days in 2023, with intermittent decreases in between. DSO measures the average number of days it takes for a company to collect revenue after a sale. A lower DSO is generally preferable as it indicates faster collection of accounts receivable and efficient credit management.

3. Number of Days of Payables: Data for the Number of Days of Payables is not provided, making it impossible to analyze the company's payment terms to its suppliers over the five-year period. This ratio would typically show how long it takes a company to pay its suppliers, and a longer period may indicate favorable payment terms for the company.

Overall, the trend in Days of Sales Outstanding (DSO) suggests that Cable One Inc may have faced challenges in efficiently collecting revenue from customers over the past five years. It's important for the company to closely monitor and manage its accounts receivable to ensure timely cash inflows and improve its working capital management. Further data on inventory turnover and payables turnover would provide a more comprehensive analysis of the company's operational efficiency.

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Long-term

The long-term activity ratios for Cable One Inc have shown fluctuations over the past five years.

The fixed asset turnover ratio has ranged from 0.87 to 1.05, exhibiting variability in how efficiently the company generates sales from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate revenue, while a lower ratio suggests that the company may not be efficiently utilizing its fixed assets.

On the other hand, the total asset turnover ratio has been relatively low, ranging from 0.23 to 0.37. This indicates that the company generates a modest level of sales in relation to its total assets. A higher total asset turnover ratio is generally preferred as it reflects that the company is generating more sales for each unit of assets invested.

Overall, the analysis of these long-term activity ratios suggests that Cable One Inc may need to focus on improving the efficiency of its asset utilization to enhance its long-term profitability and operational performance.