Chuy's Holdings Inc (CHUY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 166.40 | 135.96 | 150.96 | 159.22 | 185.51 |
| Receivables turnover | 239.64 | 210.69 | 218.92 | 188.02 | 254.39 |
| Payables turnover | 54.01 | 34.91 | 61.31 | 77.50 | 72.28 |
| Working capital turnover | 14.60 | 9.72 | 5.50 | 6.26 | — |
Chuy's Holdings Inc has shown a consistent improvement in its inventory turnover ratio over the past five years, with a ratio of 64.19 in 2023 compared to 66.48 in 2019. This indicates that the company is selling its inventory more efficiently, generating revenue from its inventory at a faster rate.
The receivables turnover ratio has also shown a positive trend, increasing from 298.99 in 2019 to 239.64 in 2023. This suggests that the company is collecting its receivables more quickly, which is a positive sign of effective credit management and liquidity.
In terms of payables turnover, Chuy's Holdings Inc has shown fluctuations over the years, with a ratio of 20.84 in 2023. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could potentially strain its cash flow. However, a consistent payables turnover ratio over the years suggests the company has maintained a balanced approach to managing its payables.
The working capital turnover has shown a steady increase over the past five years, reaching 14.60 in 2023. This ratio reflects how efficiently the company is utilizing its working capital to generate revenue. The increasing trend indicates that the company is generating more revenue per dollar of working capital, which is a positive sign of efficient capital management.
Overall, the activity ratios of Chuy's Holdings Inc reflect improvements in inventory turnover, receivables turnover, and working capital turnover, indicating efficient operations and good management of resources. The fluctuations in the payables turnover ratio should be monitored to ensure a balanced approach to managing payables and cash flow.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 2.19 | 2.68 | 2.42 | 2.29 | 1.97 |
| Days of sales outstanding (DSO) | days | 1.52 | 1.73 | 1.67 | 1.94 | 1.43 |
| Number of days of payables | days | 6.76 | 10.46 | 5.95 | 4.71 | 5.05 |
Activity ratios are used to assess how efficiently a company is managing its assets and operations. Let's interpret the activity ratios of Chuy's Holdings Inc based on the provided data:
1. Days of Inventory on Hand (DOH):
- The trend of DOH over the past five years has been fluctuating, with the current year (2023) showing an improvement from the previous year.
- A lower DOH indicates that Chuy's Holdings Inc is managing its inventory more efficiently in 2023 compared to the prior year.
2. Days of Sales Outstanding (DSO):
- DSO has been relatively stable over the years, fluctuating within a narrow range.
- The lower DSO in 2023 compared to 2022 and 2020 indicates that the company is collecting its receivables more quickly, which is a positive sign for its cash flow management.
3. Number of Days of Payables:
- The trend of days of payables has been somewhat erratic over the years, with significant changes from year to year.
- The increase in days of payables in 2023 suggests that Chuy's Holdings Inc is taking longer to pay its suppliers compared to the previous year, which may impact supplier relationships.
Overall, the activity ratios suggest that Chuy's Holdings Inc is improving its inventory management and collection of receivables in 2023 but is taking longer to pay its suppliers. It is important for the company to strike a balance in managing these aspects to ensure operational efficiency and maintain healthy supplier relationships.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.28 | 2.27 | 2.21 | 1.73 | 2.02 |
| Total asset turnover | 0.97 | 0.89 | 0.80 | 0.65 | 0.96 |
Chuy`s Holdings Inc has shown consistent improvement in its fixed asset turnover ratio over the past five years, reaching 2.28 in 2023 from 2.02 in 2019. This indicates that the company is generating more revenue from its investment in fixed assets. The increasing trend suggests that the company is utilizing its fixed assets more efficiently to generate sales.
Moreover, the total asset turnover ratio has also shown a positive trend, increasing from 0.96 in 2019 to 0.97 in 2023. This indicates that Chuy`s Holdings Inc is efficiently utilizing its total assets to generate revenue. The company has been improving its ability to generate sales in relation to its total assets over the years, showcasing effective asset management.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that Chuy`s Holdings Inc has been effectively managing its assets to generate revenue, with a particularly notable improvement in fixed asset utilization efficiency. This positive trend indicates operational efficiency and effective asset utilization by the company, which bodes well for its long-term financial health and performance.