Cable One Inc (CABO)

Short-term

Turnover ratios

The analysis of Cable One Inc's activity ratios provides insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company's inventory is sold and replaced during a period. Cable One Inc's inventory turnover has shown fluctuations over time, ranging from a low of 17.31 to a high of 93.09. A high inventory turnover indicates that the company is selling its products quickly, which is generally positive for cash flow and profitability.

2. Receivables Turnover: The receivables turnover ratio evaluates how efficiently a company collects on its accounts receivable. In this case, there is no data available for Cable One Inc, which makes it challenging to evaluate the company's performance in this area.

3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. As there is no data available for Cable One Inc, it is not possible to assess the efficiency of their payables management.

4. Working Capital Turnover: The working capital turnover ratio assesses how effectively a company is using its working capital to generate sales revenue. Cable One Inc's working capital turnover has demonstrated an upward trend, indicating an improvement in the company's ability to generate sales relative to its working capital levels. A higher ratio signifies efficient utilization of working capital to drive revenue growth.

In conclusion, while Cable One Inc has shown positive trends in its inventory turnover and working capital turnover ratios, the lack of data for receivables and payables turnovers limits a comprehensive analysis of the company's overall efficiency in managing its assets and liabilities.

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Average number of days

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

1. Days of Inventory on Hand (DOH):
- Cable One Inc's DOH fluctuated over the years, ranging from as low as 3.92 days to as high as 44.24 days.
- During most periods, the company maintained its inventory for around 15 to 20 days.
- There were instances of significant variability in inventory holding periods, indicating fluctuations in sales or production levels.
- Cable One Inc should monitor and manage its inventory efficiently to avoid excessive holding costs and potential obsolescence.

2. Days of Sales Outstanding (DSO):
- The DSO data provided are all marked as "— days," indicating that specific information on this ratio is not available.
- The absence of DSO information makes it difficult to assess the efficiency of Cable One Inc in collecting its accounts receivable.
- It is crucial for the company to track and control its DSO to ensure timely collection of revenues and maintain healthy cash flows.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables are marked as "— days," suggesting that detailed information on this ratio is not provided.
- Without insights into the payables turnover, it is challenging to evaluate the company's payment practices and liquidity management.
- Managing payables effectively is important for Cable One Inc to optimize its working capital and maintain positive relationships with suppliers.

In conclusion, while the data on inventory management is available and shows some variability, further information on sales outstanding and payables turnover is needed to comprehensively assess Cable One Inc's overall activity and efficiency in managing its working capital.

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Long-term

The long-term activity ratios of Cable One Inc can provide insights into how efficiently the company is utilizing its assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures the company's ability to generate sales from its fixed assets. Cable One Inc's fixed asset turnover ratio has shown some fluctuation over the reported periods, ranging from 0.81 to 1.05. A higher fixed asset turnover ratio indicates more efficient utilization of fixed assets to generate sales. The ratio was relatively stable around 1.00 in the earlier periods but declined in the later periods, indicating a decrease in efficiency in utilizing fixed assets for revenue generation.

2. Total Asset Turnover: This ratio evaluates how effectively the company is using all its assets to generate revenue. Cable One Inc's total asset turnover ratio has shown a declining trend from 0.37 to 0.24 over the reported periods. A decreasing total asset turnover ratio suggests a decrease in the company's ability to generate sales relative to its total assets. The decline in the ratio indicates that Cable One Inc may be becoming less efficient in utilizing its total assets to generate revenue.

Overall, based on the trend in both fixed asset turnover and total asset turnover ratios, it appears that Cable One Inc may be facing challenges in efficiently utilizing its assets to generate revenue. It would be important for the company to further analyze the factors affecting these ratios and implement strategies to improve asset utilization efficiency in order to enhance profitability and operational performance.