Cable One Inc (CABO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 8.25 | — | 21.18 | 31.59 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 24.17 | 12.03 | 16.64 | 6.93 | 2.94 |
Based on the provided data for Cable One Inc's activity ratios:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory.
- Cable One Inc's inventory turnover decreased from 31.59 in 2020 to 21.18 in 2021 and further dropped to 8.25 in 2023. There is missing data for 2022 and 2024.
- A higher inventory turnover indicates that the company is selling its products more frequently, which is generally preferable as it reduces holding costs.
2. Receivables Turnover:
- The receivables turnover ratio indicates how quickly the company collects its receivables.
- There is no data available for receivables turnover for any of the years provided. It is important for companies to manage their accounts receivable efficiently to maintain cash flow.
3. Payables Turnover:
- The payables turnover ratio measures how efficiently a company pays its suppliers.
- There is no data available for payables turnover for any of the years provided. Managing payables effectively is crucial to maintain good relationships with suppliers and optimize cash flow.
4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively the company is using its working capital to generate revenue.
- Cable One Inc's working capital turnover improved significantly from 2.94 in 2020 to 24.17 in 2024, indicating that the company has been more efficient in utilizing its working capital to generate sales.
In conclusion, Cable One Inc has shown fluctuations in inventory turnover and a notable improvement in working capital turnover over the years. However, it is important to consider the missing data for receivables and payables turnover for a more comprehensive analysis of the company's overall efficiency in managing its assets and liabilities.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 44.24 | — | 17.23 | 11.55 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Cable One Inc's Days of Inventory on Hand (DOH) has shown a slight increase over the years, from 11.55 days as of December 31, 2020, to 17.23 days as of December 31, 2021, indicating that the company is holding on to its inventory for a longer period before selling it. However, there are missing data points for the years 2022 and 2024.
The Days of Sales Outstanding (DSO) metric, which measures the average number of days it takes for a company to collect revenue after a sale, is not provided for any of the years, indicating a lack of available data to assess this aspect of Cable One Inc's operations.
The Number of Days of Payables metric is also not provided for the years 2020 to 2024, preventing an analysis of the average number of days it takes for Cable One Inc to pay its suppliers.
Overall, the limited data on Days of Inventory on Hand suggests a trend of inventory management for Cable One Inc, while the absence of information on Days of Sales Outstanding and Number of Days of Payables hinders a comprehensive assessment of the company's activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.00 | 0.87 | 1.05 |
| Total asset turnover | 0.24 | 0.25 | 0.25 | 0.23 | 0.30 |
Long-term activity ratios such as fixed asset turnover and total asset turnover provide insight into how effectively Cable One Inc is utilizing its assets to generate revenue.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company is using its fixed assets to generate sales.
- In 2020, the ratio was 1.05, indicating that Cable One Inc generated $1.05 in revenue for every $1 of fixed assets. This suggests efficient utilization of fixed assets.
- The ratio decreased to 0.87 in 2021, which may indicate a decline in the productivity of the company's fixed assets.
- It then improved to 1.00 in 2022, showing a recovery in the efficiency of utilizing fixed assets.
- Data for 2023 and 2024 are not available, so it is not possible to assess the trend in fixed asset turnover for those years.
2. Total Asset Turnover:
- The total asset turnover ratio reflects how efficiently the company is using all its assets to generate sales.
- The ratio was 0.30 in 2020, meaning Cable One Inc generated $0.30 in revenue for every $1 of total assets. This indicates lower efficiency in asset utilization.
- There was a decrease to 0.23 in 2021, suggesting a further decline in asset utilization efficiency.
- In 2022 and 2023, the ratio remained relatively stable at 0.25, showing consistency in the utilization of total assets to generate revenue.
- In 2024, the total asset turnover ratio decreased slightly to 0.24, which could imply a small decrease in the efficiency of asset utilization for that year.
Overall, based on the data provided, Cable One Inc experienced fluctuations in the efficiency of utilizing its fixed assets and total assets to generate revenue over the analyzed years. Further analysis and comparison with industry benchmarks would be beneficial to gain a deeper understanding of the company's long-term activity performance.