Caseys General Stores Inc (CASY)

Short-term

Turnover ratios

The activity ratios of Caseys General Stores Inc provide insights into the efficiency of inventory management, receivables collection, payables settlement, and working capital utilization over a series of periods from July 2020 through April 2025.

Inventory Turnover:
The inventory turnover ratio reflects how effectively the company manages its inventory. The data indicates a decreasing trend from July 2020 (27.02) to an initial low point in April 2021 (22.16), reaching a nadir in July 2021 (21.67). Subsequently, there is a general upward movement, peaking at 31.97 in April 2023, before declining again to 26.55 in October 2024. The overall pattern suggests that the company initially experienced decreased efficiency in inventory management but then improved significantly, achieving higher turnover rates in 2022 and early 2023. The subsequent decline may reflect a slowdown in inventory turnover efficiency or changes in inventory levels, culminating at 19.00 in April 2025, which signals a potential decrease in inventory management effectiveness or strategic shifts.

Receivables Turnover:
This ratio measures how promptly the company collects its accounts receivable. The figures show a decline from July 2020 (155.51) to April 2021 (97.53), followed by fluctuations. Notably, the ratio decreased sharply from January 2021 to April 2021, then gradually increased through 2022 and into 2023, reaching a peak of 114.09 in January 2023. After this peak, the receivables turnover displays some variability but generally remains around the low 90s to upper 80s. This pattern indicates that the company has been somewhat consistent in managing receivables, with periods of improved collection efficiency, especially evident in early 2023, but with some fluctuations that could suggest changes in credit policies or customer payment behaviors.

Payables Turnover:
The payables turnover ratio reveals the speed at which the company pays its suppliers. The data presents variability, with the ratio decreasing from July 2020 (20.80) to April 2021 (17.87) but increasing again in the subsequent periods, reaching 23.51 in January 2023. After this peak, there is a declining trend, notably dropping to 14.70 in April 2025. The fluctuations reflect periods where the company either delayed payments to optimize working capital or shortened payment cycles potentially due to cash flow considerations or supplier negotiations. The recent downward trend suggests a tendency to extend payment periods or slower settlement of accounts payable.

Working Capital Turnover:
This ratio, available for a limited number of periods, indicates the efficiency in using working capital to generate sales or revenue. The best recorded figure is 357.96 in July 2020, with subsequent values showing a significant decline and variability. Notably, there are periods with no data, making comprehensive trend analysis limited. Nonetheless, the available figures highlight instances where the company efficiently utilized working capital shortly after 2020 but faced fluctuations, with some periods, such as October 2022 (207.38) and October 2023 (239.72), indicating relatively improved efficiency compared to earlier periods.

Overall, the activity ratios of Caseys General Stores Inc. experienced notable fluctuations during the observed period. These changes reflect variations in inventory management, credit collection, payment practices, and working capital utilization, which may be attributable to strategic shifts, operational adjustments, or external economic conditions. The trends suggest periods of operational efficiencies interspersed with phases of decreased efficiency, emphasizing the importance of ongoing management of these key operational metrics.

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Average number of days

The activity ratios of Caseys General Stores Inc., as evidenced by its key operating cycle metrics, demonstrate notable trends over the examined period.

### Days of Inventory on Hand (DOH):
The company's inventory holding period has exhibited fluctuations from July 2020 through October 2025. Initially, the DOH increased from approximately 13.51 days in July 2020 to a peak of 17.02 days in January 2021, indicating a tendency to hold inventory longer during this period. Subsequent fluctuations include a general moderation, reaching a low of 11.42 days in April 2023, which suggests improved inventory efficiency and faster turnover. However, there is a discernible upward trend from mid-2023 onwards, culminating in a projected DOH of around 19.21 days by April 2025, implying potential inventory accumulation or extended holding periods in recent periods.

### Days of Sales Outstanding (DSO):
The collection period for receivables has remained remarkably stable and short throughout the analyzed timeframe. The DSO fluctuated narrowly between approximately 2.35 days (July 2020) and a high of 4.38 days (July 2021), but generally hovered under 4 days. This consistency indicates efficient cash collection processes and rapid turnover of receivables relative to sales. The slight increase towards the later periods, reaching around 4.30 days in January 2025, still reflects a highly effective receivables management.

### Days of Payables:
The days of payables, representing the period the company takes to settle its obligations, has demonstrated variability, with a general trend toward shorter credit periods. Initially, the number of days Payables ranged from around 17.55 days in July 2020 to approximately 22.59 days in July 2021. Thereafter, the duration declined, reaching a low of about 15.53 days in January 2023, indicating an effort to accelerate payments or negotiate shorter credit terms. A notable increase is observed in April 2025, where the payables period extends to approximately 24.83 days, suggesting a possible deliberate extension of payment terms or operational cash flow adjustments.

### Overall Interpretation:
Caseys General Stores Inc. displays a pattern of efficient receivables management, maintaining a consistently low DSO. Inventory turnover has experienced periods of improvement, but recent data points to an increasing inventory holding period, which may warrant attention for potential inventory management or supply chain considerations. The company's payables cycle has shown fluctuations, with recent tendencies toward extended payment periods, potentially indicating strategic supplier negotiations or cash flow optimization efforts. These activity ratios collectively reflect the company's operational efficiency and liquidity management strategies over time.

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Long-term

The analysis of Caseys General Stores Inc.’s long-term activity ratios, based on the provided data, reveals insights into the company’s utilization of its fixed assets and total assets over the specified periods.

Fixed Asset Turnover Ratio:
This ratio indicates how efficiently the company generates sales from its fixed assets, such as property, plant, and equipment. From July 31, 2020, through October 31, 2023, the fixed asset turnover exhibits fluctuations but generally demonstrates improvement over time. Starting at 2.62 in July 2020, the ratio declined slightly during the subsequent quarters, reaching a low of 2.39 in January 2021, then improving steadily through October 2022 to reach a peak of 3.73. A notable decline occurs in April 2023 to 2.24, followed by a rebound to 3.43 in July 2023. Data beyond October 2023 is unavailable, precluding further trend analysis. The upward trend observed until late 2022 suggests increasing efficiency in utilizing fixed assets to generate sales, with some short-term downturns possibly attributable to operational adjustments or asset base changes.

Total Asset Turnover Ratio:
This ratio measures the company's overall efficiency in using all assets to generate sales. From July 31, 2020, the total asset turnover decreased initially from 2.11 to 1.85 by January 2021, implying a decline in efficiency. Subsequently, the ratio increases steadily, reaching 2.61 in January 2023, reflecting improved asset utilization. However, from April 2023 onward, a slight downward trend is visible, with the ratio dipping to around 1.89 in January 2025. Notably, the ratio peaks at 2.58 on October 31, 2022, then declines thereafter, indicating potential challenges in maintaining the previous levels of asset efficiency or changes in sales volume relative to total assets. The ratio's decline in the most recent periods suggests a possible stabilization or reduction in sales relative to assets, which may warrant further investigation into operational or market factors influencing asset utilization.

Overall Interpretation:
The long-term activity ratios for Caseys General Stores Inc. reveal a pattern of initial fluctuations with a general trend towards improved efficiency during the 2020–2022 period, as evidenced by rising fixed and total asset turnover ratios. The peaks in late 2022 indicate optimal utilization periods, but subsequent declines suggest potential operational adjustments, asset base reconfiguration, or market conditions impacting sales efficiency relative to assets. The data reflects a company that has experienced periods of enhanced operational efficiency but faces challenges in sustaining these levels in recent quarters. Continued observation beyond October 2023 is necessary to determine if the recent downward trends are temporary or indicative of structural shifts.