Caseys General Stores Inc (CASY)

Short-term

Turnover ratios

Caseys General Stores Inc's activity ratios provide insights into the efficiency of the company's operations.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times inventory is sold and replaced over a period.
- The decreasing trend from 2020 to 2022 indicates that the company is taking longer to sell its inventory.
- However, a significant increase in 2023 suggests an improvement in managing inventory levels efficiently.

2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly the company collects outstanding receivables.
- The ratios fluctuate significantly over the years, with a particularly high turnover in 2024, indicating efficient collection of receivables.

3. Payables Turnover:
- The payables turnover ratio indicates how many times a company pays its suppliers over a period.
- A declining trend from 2020 to 2021 may suggest a longer credit period with suppliers.
- However, the decrease in 2022 followed by stabilization in 2023 indicates better management of payables turnover.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company uses its working capital to generate revenue.
- Lack of data for certain years prevents a detailed analysis, but the presence of data in 2021 suggests a high turnover of working capital.

In conclusion, while fluctuations are seen in Caseys General Stores Inc's activity ratios over the years, the company shows improvements in managing inventory levels, collecting receivables, and handling payables efficiently.

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Average number of days

By analyzing the activity ratios of Caseys General Stores Inc over the past five years, we can gain insights into its inventory management, accounts receivable collection, and accounts payable practices.

1. Days of Inventory on Hand (DOH): This ratio measures how many days, on average, it takes for the company to sell its inventory. A lower number indicates efficient inventory management. Between 2020 and 2022, Caseys General Stores Inc experienced fluctuations in its DOH, with a peak in 2021 at 15.19 days. However, in 2023 and 2024, the DOH decreased, suggesting improved inventory turnover efficiency, reaching 10.85 days in 2023 and 12.81 days in 2024.

2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes for the company to collect payment after making a sale. Lower DSO values indicate effective credit management and prompt collection. Caseys General Stores Inc maintained a relatively low DSO across the years, with a slight increase in 2022, which decreased again in 2023 and 2024. The lowest DSO was observed in 2021 at 0.40 days, indicating efficient accounts receivable collection practices.

3. Number of Days of Payables: This ratio indicates the average number of days it takes for the company to pay its suppliers. A longer payment period can suggest improved cash flow management. Caseys General Stores Inc showed fluctuations in the number of days of payables over the years, with the highest value in 2022 at 19.90 days and the lowest in 2020 at 9.59 days. In 2024, the number of days of payables increased to 17.01 days, indicating a longer payment period to suppliers compared to the previous year.

Overall, the trends in the activity ratios of Caseys General Stores Inc suggest improvements in inventory turnover efficiency and accounts receivable collection practices over the recent years. However, the increase in the number of days of payables in 2024 may require further analysis to understand the impact on the company's cash flow and supplier relationships.

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Long-term

Caseys General Stores Inc has shown a consistent trend of improvement in both fixed asset turnover and total asset turnover ratios over the past five years.

The fixed asset turnover ratio has decreased from 2.76 in 2020 to 3.58 in 2023, before slightly declining to 3.24 in 2024. This trend suggests that the company has become more efficient in generating sales from its fixed assets, which include long-term assets like property, plants, and equipment. A higher fixed asset turnover ratio indicates that the company is effectively utilizing its fixed assets to generate revenue.

Similarly, the total asset turnover ratio has also seen improvement, increasing from 1.95 in 2021 to 2.54 in 2023, before stabilizing at 2.34 in 2024. This demonstrates that the company has been able to generate more revenue relative to its total assets over the years. A higher total asset turnover ratio indicates that the company is efficiently using its total assets, including both fixed and current assets, to generate sales.

Overall, these improvements in both fixed asset turnover and total asset turnover ratios reflect positively on Caseys General Stores Inc's ability to effectively manage and utilize its assets to drive revenue growth. This efficiency in asset utilization is a key metric for investors and stakeholders to assess the company's operational performance and long-term sustainability.