Avis Budget Group Inc (CAR)

Short-term

Turnover ratios

Based on the provided data for Avis Budget Group Inc's activity ratios:

1. Inventory Turnover: Avis Budget Group Inc's inventory turnover ratio fluctuated over the years, ranging from a high of 13.48 in June 2020 to a low of 4.27 in June 2022. The company experienced a significant improvement in inventory turnover by the end of March 2024, reaching a ratio of 19.60, indicating that inventory was being sold more efficiently.

2. Receivables Turnover: There is no available data for the receivables turnover ratio, which indicates that information on how quickly the company is collecting its accounts receivable is not provided or possibly not applicable.

3. Payables Turnover: Similar to receivables turnover, there is no available data for the payables turnover ratio, which typically reflects how quickly a company pays its suppliers.

4. Working Capital Turnover: The data shows a working capital turnover ratio of 54.31 in June 2020, suggesting that the company effectively utilized its working capital to generate sales during that period. However, there is a lack of data for the subsequent periods, making it challenging to assess the efficiency of working capital utilization in later years.

In conclusion, the analysis of Avis Budget Group Inc's activity ratios highlights fluctuations in inventory turnover and a lack of data for receivables turnover, payables turnover, and working capital turnover for most periods, limiting a comprehensive assessment of the company's operational efficiency and liquidity management.

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Average number of days

Based on the provided data, we can analyze Avis Budget Group Inc's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- Avis Budget Group's DOH shows a fluctuating trend over the years, ranging from a low of 18.62 days on March 31, 2024, to a high of 85.50 days on June 30, 2022.
- Generally, a lower number of days of inventory on hand is preferred as it indicates efficient inventory management. The company should strive to maintain a balance to avoid stockouts and excess inventory.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no available data for Avis Budget Group's DSO, indicating that information related to accounts receivable turnover is not provided or may not be applicable.

3. Number of Days of Payables:
- Similar to DSO, the data shows no specific values for the number of days of payables, suggesting that details about the company's accounts payable turnover are not disclosed or may not be applicable for this analysis.

In summary, while we can assess Avis Budget Group's inventory turnover efficiency through the DOH metric, the absence of data for DSO and payables turnover limits our ability to provide a comprehensive evaluation of the company's overall activity ratios.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher ratio indicates better efficiency in using fixed assets to generate revenue. Avis Budget Group Inc's fixed asset turnover ratio saw a significant increase from 11.79 as of March 31, 2020, to a peak of 23.30 as of September 30, 2022. This suggests that the company was effectively utilizing its fixed assets during this period.

However, from March 31, 2023, onwards, there was a sharp decline in the fixed asset turnover ratio, dropping to 3.71 as of September 30, 2023, and eventually becoming unavailable from December 31, 2023, onwards. This could indicate a decrease in the efficiency of utilizing fixed assets to generate sales during this period.

The total asset turnover ratio measures how effectively a company is using all its assets to generate revenue. A higher ratio indicates better efficiency in utilizing assets to generate sales. Avis Budget Group Inc's total asset turnover ratio fluctuated over the period analyzed, ranging from a low of 0.27 as of March 31, 2021, to a high of 1.35 as of June 30, 2023.

The company's total asset turnover ratio showed improvement over time, with an overall increasing trend from 0.27 as of March 31, 2021, to 0.40 as of December 31, 2024. This suggests that Avis Budget Group Inc became more efficient in using its total assets to generate revenue.

In conclusion, while the fixed asset turnover ratio experienced fluctuations, the total asset turnover ratio displayed an overall improving trend, indicating better efficiency in utilizing assets to generate revenue for Avis Budget Group Inc over the analyzed period.