Caseys General Stores Inc (CASY)

Short-term

Turnover ratios

The activity ratios for Caseys General Stores Inc. over the specified periods provide insight into the company's operational efficiency regarding inventory management, receivables collection, and payables obligations.

Inventory Turnover:
The inventory turnover ratio increased consistently from 22.16 times on April 30, 2021, to a peak of 31.97 times on April 30, 2023. This trend indicates an improving efficiency in managing inventory, suggesting that the company was able to sell and replace its inventory more rapidly during this period. However, a decline is observed in the subsequent year to 26.86 times by April 30, 2024, implying a possible slowdown in inventory turnover or increased inventories relative to sales. The ratio drops to zero in the latest period, April 30, 2025, which may denote a lack of comparable data or a significant change affecting inventory management.

Receivables Turnover:
Receivables turnover demonstrates variability over the years, with ratios relatively high. The ratio was 97.53 times as of April 30, 2021, then decreased to 85.16 times in 2022 before rising again to 104.90 times in 2023. This indicates that the company improved its collection efficiency in 2023, collecting receivables more frequently during the year. The subsequent ratio of 88.02 times in 2024 suggests a decline in collection efficiency but remains relatively high, with the ratio slightly decreasing to 87.82 times by April 30, 2025.

Payables Turnover:
The payables turnover ratio increased from 17.87 times in 2021 to 21.45 times in 2023, implying that the company settled its payables more frequently each period, which could reflect better management of supplier terms or accelerated payment cycles. However, a slight decrease to 20.22 in 2024 indicates a minor reduction in payment frequency, possibly suggesting longer payment periods or changes in supplier relationships. The ratio drops to zero in 2025, which may again indicate data unavailability or a fundamental change in payables management.

Working Capital Turnover:
Data for working capital turnover is available only for April 30, 2021, at 78.53, with no subsequent data provided. As a result, analysis of changes or trends in this ratio remains limited. The absence of later data precludes assessment of the company's efficiency in utilizing working capital over time.

Summary:
Overall, Caseys General Stores Inc. has demonstrated notable improvements in inventory management and receivables collection efficiency up to 2023. The inventory turnover trend reflects effective inventory control during this period, which then appears to slow down in 2024 or data is unavailable. The receivables turnover shows high collection frequency, supporting effective credit and cash flow management. The payables turnover ratios suggest an initial improvement in payment practices, though limited data restricts comprehensive evaluation for the latest periods. The lack of current data on working capital turnover limits full assessment of operational efficiency in managing working capital over consecutive years.

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Average number of days

The activity ratios for Caseys General Stores Inc., specifically focusing on inventory management, receivables collection, and payables turnover, demonstrate notable trends over the three-year period ending April 30, 2023, with data extending marginally into 2024 and 2025.

Regarding the Days of Inventory on Hand (DOH), the figures indicate a consistent decline from 16.47 days in April 2021 to 14.19 days in April 2022, and further down to 11.42 days in April 2023. This trend suggests an improvement in inventory turnover, reflecting more efficient inventory management and potentially a better alignment between inventory levels and sales demand. Subsequently, the DOH increased slightly to 13.59 days in April 2024, implying a small accumulation of inventory or a strategic adjustment, though the data for 2025 is not available.

The Days of Sales Outstanding (DSO) remained relatively stable across the period, marginally increasing from 3.74 days in 2021 to 4.29 days in 2022. In 2023, the DSO decreased again to 3.48 days and maintained a similar level at 4.15 days in 2024, with slight variation. These figures suggest that the company's collection period for receivables remains short, indicating efficient receivables management with prompt cash collection from customers.

For the Number of Days of Payables, the figures show fluctuations within the period, decreasing from 20.43 days in 2021 to 17.02 days in 2023. This reduction indicates the company is settling its payables more quickly over time, which could reflect improved cash flow management or changes in supplier credit policies. The data for 2024 and 2025 is either not available or not disclosed.

Overall, the activity ratios depict a company that has enhanced inventory turnover, maintained efficient receivable collection processes, and has adjusted its payable periods strategically over the analyzed years. These changes can positively influence liquidity and operational efficiency, indicating effective working capital management.

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Long-term

The analysis of Caseys General Stores Inc.'s long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, reveals noteworthy trends over the period from April 30, 2021, to April 30, 2023.

The Fixed Asset Turnover ratio, which measures how efficiently the company utilizes its fixed assets to generate sales, experienced an increase from 2.48 in April 2021 to 3.25 in April 2022. This indicates an improvement in asset efficiency during this period. However, this upward trend was not sustained into April 2023, where the ratio declined to 2.24, suggesting a reduction in the efficiency of fixed asset utilization relative to previous years.

In terms of Total Asset Turnover, which assesses the overall effectiveness in using all assets to generate sales, there was a steady upward progression from 1.95 in April 2021 to 2.35 in April 2022, reflecting enhanced overall asset efficiency. This positive trend continued into April 2023, with the ratio reaching 2.54, the highest within the observed period, implying that the company was generating more sales per dollar of total assets. However, projections for April 2024 and April 2025 indicate a slight decline, with the ratios expected to decrease to 2.34 and 1.94 respectively, suggesting a potential reduction in overall asset efficiency in the future.

Overall, the data indicates that Caseys General Stores Inc. experienced a period of improved asset utilization efficiency in the initial two years, particularly evident in the spike in both fixed and total asset turnover ratios by April 2022. The subsequent decline in these ratios, especially for fixed assets, could imply challenges in maintaining previous efficiencies or strategic adjustments that resulted in more asset investments or changes in sales strategies. The projected decline in total asset turnover further suggests a possible shift towards less efficient asset usage or increased asset base in the upcoming years.