Chewy Inc (CHWY)

Short-term

Turnover ratios

Chewy Inc's activity ratios provide insights into how efficiently the company manages its assets and liabilities.

1. Inventory Turnover:
- Chewy's inventory turnover has been consistently high over the past few periods, ranging from 11.58 to 14.89.
- This indicates that the company is efficiently selling its inventory and restocking at a fast rate, which is a positive sign for the business.

2. Receivables Turnover:
- Chewy's receivables turnover has fluctuated but generally remained at healthy levels, with values between 56.31 and 79.91.
- This indicates that the company is collecting its accounts receivable quickly, managing credit effectively, and generating sales efficiently.

3. Payables Turnover:
- Chewy's payables turnover has also been relatively stable, ranging from 7.79 to 9.52.
- A higher payables turnover suggests that the company is efficiently managing its payables and settling its debts in a timely manner.

4. Working Capital Turnover:
- The data shows missing values for working capital turnover, suggesting that this ratio may not be applicable or relevant for Chewy Inc or the data may not be available.
- It is important to note that a high working capital turnover ratio indicates that the company is generating sales using a lower amount of working capital.

Overall, Chewy Inc's activity ratios reflect effective management of inventory, receivables, and payables, contributing to the company's operational efficiency and financial performance. The company appears to be adept at managing its working capital efficiently, although more data would be needed to fully assess this aspect.

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Average number of days

Chewy Inc's activity ratios, namely Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insights into the management of inventory, accounts receivable, and accounts payable. Over the recent periods, Chewy has shown improvements in managing these aspects of its operations.

1. Days of Inventory on Hand (DOH): This ratio measures how efficiently Chewy manages its inventory by indicating the number of days it takes to sell its inventory. The trend shows a slight increase in DOH from about 24 to 29 days over the past two years. This increase may suggest a need for better inventory management to reduce holding costs and improve cash flow.

2. Days of Sales Outstanding (DSO): DSO reflects how quickly Chewy collects payments from its customers. The decreasing trend in DSO, from about 6.5 to 5 days, indicates improved efficiency in collecting accounts receivable. Lower DSO implies faster cash conversion and better working capital management.

3. Number of Days of Payables: This metric shows how long it takes Chewy to pay its suppliers. The trend reflects a decrease in the number of days of payables from around 41 to 39 days, indicating a slightly more efficient payment cycle. However, the ideal balance between payables and receivables must be maintained to optimize cash flow and relationships with suppliers.

Overall, Chewy Inc has shown improvements in managing its inventory, accounts receivable, and accounts payable cycles, with efforts to optimize working capital and cash flow. Continued monitoring and adjustments in these activity ratios will be crucial for sustaining operational efficiency and financial health.

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Long-term

Chewy Inc's long-term activity ratios indicate its efficiency in utilizing its assets to generate sales. The fixed asset turnover ratio has been consistently high, ranging between 20.94 to 40.82 over the past two years. This highlights the company's ability to generate substantial revenues relative to its investment in fixed assets.

On the other hand, the total asset turnover ratio has fluctuated between 3.50 to 5.20 during the same period. While the fluctuations suggest some variability in asset utilization efficiency, the ratios generally indicate that Chewy Inc has been effective in generating sales in relation to its total assets.

Overall, the high fixed asset turnover and relatively stable total asset turnover ratios suggest that Chewy Inc has been effectively managing its assets to drive sales growth over the analyzed period.