The Chefs Warehouse Inc (CHEF)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 11.71 10.75 11.51 12.89 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
Receivables turnover 10.32 10.24 10.40 10.53 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
Payables turnover 13.87 15.58 16.20 19.15 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
Working capital turnover 8.54 10.15 10.63 10.64 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

The analysis of The Chefs Warehouse Inc activity ratios reveals the following trends:

1. Inventory Turnover:
- The inventory turnover ratio has fluctuated over the years, ranging from a low of 8.28 in March 2021 to a high of 12.89 in March 2024.
- Generally, the company has shown improvements in managing its inventory efficiently as the ratio increased towards the later years of the data, indicating a more rapid turnover of inventory.

2. Receivables Turnover:
- The receivables turnover ratio also witnessed fluctuations, with values ranging from a low of 9.00 in June 2021 to a high of 13.16 in June 2020.
- The company's ability to collect receivables improved in the earlier years of the data but experienced some decline in the later years.

3. Payables Turnover:
- The payables turnover ratio displayed variability, with values fluctuating between 9.50 in June 2021 to 19.15 in March 2024.
- An increasing trend in the payables turnover ratio indicates that the company is taking longer to pay its suppliers, which could be advantageous in terms of managing cash flow.

4. Working Capital Turnover:
- The working capital turnover ratio ranged from 3.72 in March 2021 to 10.64 in March 2024, showing an increasing trend over the years.
- The higher working capital turnover ratio indicates a more efficient use of working capital to generate sales revenue.

Overall, the analysis of activity ratios suggests that The Chefs Warehouse Inc has made improvements in managing its inventory efficiently and utilizing working capital effectively, although there have been fluctuations in receivables turnover and payables turnover ratios. These trends reflect the company's operational performance and efficiency in managing its assets and liabilities.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 31.17 33.95 31.72 28.31 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
Days of sales outstanding (DSO) days 35.36 35.63 35.09 34.67 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
Number of days of payables days 26.31 23.43 22.52 19.06 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

The activity ratios of The Chefs Warehouse Inc provide insight into how efficiently the company is managing its operations.

1. Days of Inventory on Hand (DOH): The trend in DOH shows the number of days it takes for the company to turn its inventory into sales. A decreasing trend in DOH, as seen from March 2020 (38.96 days) to December 2024 (31.17 days), indicates that the company is managing its inventory more efficiently over time.

2. Days of Sales Outstanding (DSO): DSO measures the average number of days it takes for the company to collect its accounts receivable. The trend in DSO from March 2020 (32.99 days) to December 2024 (35.36 days) shows a slight increase, indicating a potential delay in collecting receivables over the period.

3. Number of Days of Payables: This ratio represents the average number of days the company takes to pay its suppliers. A decreasing trend in payables days, as observed from March 2020 (27.76 days) to December 2024 (26.31 days), suggests that the company may be paying its suppliers more promptly.

Overall, analyzing these activity ratios helps in assessing how effectively The Chefs Warehouse Inc is managing its inventory, receivables, and payables, which are essential aspects of its operational efficiency and working capital management.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 16.39 13.66 13.97 14.13 14.44 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
Total asset turnover 2.03 2.08 2.11 2.12 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

The Fixed Asset Turnover ratio measures how efficiently a company is generating sales from its fixed assets. For The Chefs Warehouse Inc, this ratio has shown a decreasing trend from 12.70 in March 2020 to 16.39 in December 2024. A higher ratio indicates better utilization of fixed assets to generate sales, and the company's stable ratio over the years implies consistent efficiency in this aspect.

On the other hand, the Total Asset Turnover ratio reflects how well the company is utilizing all its assets to generate sales. The Chefs Warehouse Inc has seen an increasing trend in this ratio from 1.44 in March 2020 to 2.03 in December 2024. This indicates that the company has been improving its efficiency in generating revenue from its total assets over time, which could signify effective asset management and operational performance.

Overall, The Chefs Warehouse Inc has shown a positive trend in both Fixed Asset Turnover and Total Asset Turnover ratios, showcasing efficient utilization of fixed assets and overall assets to drive revenue growth over the years.