The Chefs Warehouse Inc (CHEF)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 23, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	11.79	10.25	10.20	9.97	10.32	12.16	11.88	12.84	12.14	9.25	8.34	8.28	9.00	10.61	11.03	9.37	9.67	9.85	9.61	10.12
Receivables turnover	10.15	9.46	9.25	10.05	9.83	11.28	10.50	11.55	10.02	9.60	9.00	10.07	11.37	12.34	13.16	11.06	9.02	9.39	9.59	9.65
Payables turnover	16.73	15.29	15.03	16.12	15.51	16.22	14.92	16.12	14.83	11.27	9.50	10.94	12.91	14.08	17.51	13.15	12.74	15.06	13.56	14.72
Working capital turnover	9.82	8.63	7.85	7.03	5.85	6.65	8.85	8.02	6.33	5.34	4.65	3.72	3.81	4.09	4.47	4.69	5.21	8.26	8.50	8.77

The Chefs Warehouse Inc's activity ratios provide insights into how efficiently the company is managing its inventory, receivables, payables, and working capital.

1. Inventory turnover: The company's inventory turnover has remained relatively stable over the period, averaging around 10 times per year. This implies that inventory is being sold and replenished efficiently, with a slight decrease in the most recent quarter.

2. Receivables turnover: The receivables turnover indicates how quickly the company collects on credit sales. The figures show a consistent performance, averaging around 10 times per year. This suggests that the company is effectively managing its receivables and collecting payments in a timely manner.

3. Payables turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. The company has consistently maintained a payables turnover of around 15 times per year, indicating a healthy supplier payment process.

4. Working capital turnover: The working capital turnover measures how effectively the company is using its working capital to generate sales. The ratios show an improving trend over the period, implying that the company is generating more sales per unit of working capital. This indicates efficient utilization of resources to drive revenue growth.

Overall, The Chefs Warehouse Inc appears to be effectively managing its operational activities, with stable inventory turnover, efficient receivables and payables management, and improving efficiency in the utilization of working capital.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 23, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	30.95	35.61	35.78	36.62	35.38	30.02	30.73	28.42	30.06	39.47	43.79	44.09	40.55	34.42	33.08	38.96	37.76	37.07	38.00	36.05
Days of sales outstanding (DSO)	days	35.96	38.57	39.45	36.33	37.14	32.36	34.77	31.60	36.43	38.04	40.54	36.26	32.10	29.59	27.73	32.99	40.48	38.86	38.06	37.81
Number of days of payables	days	21.81	23.87	24.28	22.65	23.53	22.51	24.46	22.64	24.61	32.39	38.44	33.36	28.26	25.93	20.84	27.76	28.64	24.24	26.91	24.80

The Chefs Warehouse Inc's activity ratios over the past several quarters indicate trends in how efficiently the company is managing its operations:

1. Days of Inventory on Hand (DOH):
- The company has seen fluctuations in its DOH over the periods, ranging from 28.42 days to 44.09 days.
- A lower DOH indicates that inventory is moving quickly, while a higher number suggests slower turnover. The company's DOH has generally been within a reasonable range, indicating effective inventory management.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect its accounts receivable.
- The company's DSO has shown variability, ranging from 27.73 days to 40.54 days.
- A higher DSO suggests slower collections, potentially impacting cash flows. The company should aim to consistently monitor and improve this metric to optimize cash conversion.

3. Number of Days of Payables:
- This ratio reflects the number of days the company takes to pay its suppliers.
- The company has maintained a relatively stable range of payables days, from 20.84 days to 38.44 days.
- A higher number of days of payables may indicate good cash flow management, but it could also potentially strain supplier relationships if stretched too far.

Overall, The Chefs Warehouse Inc's activity ratios show a mix of efficiency in managing inventory, collecting receivables, and paying suppliers. Consistent monitoring and optimization of these ratios can enhance the company's overall working capital management and operational efficiency.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 23, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	15.80	15.34	14.52	14.06	13.77	14.86	14.05	12.92	12.94	12.32	10.65	8.82	9.49	10.61	11.42	12.70	17.00	17.07	16.74	16.58
Total asset turnover	1.99	1.93	1.81	1.78	1.69	1.88	1.92	1.80	1.61	1.41	1.21	1.04	1.12	1.20	1.34	1.44	1.56	1.74	1.72	1.73

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. Looking at the trend for The Chefs Warehouse Inc, we can observe that the fixed asset turnover ratio has been relatively stable over the past few quarters, ranging between 8.82 to 15.80. This indicates that the company is consistently generating sales using its fixed assets, with a peak performance in Q4 2023.

On the other hand, the total asset turnover ratio reflects the company's overall efficiency in generating sales from all its assets. The trend for The Chefs Warehouse Inc shows a slight increase in total asset turnover from 1.04 in Q1 2021 to 1.99 in Q4 2023. This suggests that the company has been improving its efficiency in utilizing all its assets to generate revenue over time.

Overall, both ratios indicate that The Chefs Warehouse Inc has been effectively managing its assets to drive sales growth and improve efficiency in its operations.