Columbia Sportswear Company (COLM)

Short-term

Turnover ratios

For Columbia Sportswear Company, the inventory turnover has shown a consistent increase over the years, from 2.30 in 2020 to 2.43 in 2024, indicating that the company is efficiently managing its inventory and selling goods effectively.

The receivables turnover and payables turnover ratios are not available, which suggests that specific data regarding the collection of receivables and payment of payables is not provided or relevant.

Regarding working capital turnover, the company has shown an increasing trend from 1.92 in 2020 to 2.71 in 2024. This indicates that Columbia Sportswear is generating more revenue for each dollar of working capital employed, reflecting efficient utilization of resources to drive sales and support business operations.

Overall, the trend seen in these activity ratios indicates that Columbia Sportswear Company is effectively managing its inventory, working capital, and generating sales efficiently, which is positive for the company's operational performance.

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Average number of days

Based on the provided data for Columbia Sportswear Company for the years 2020 to 2024, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- In 2020, the company had an inventory turnover of approximately 158.99 days, indicating that it took around 159 days to sell through its inventory.
- The DOH decreased to 155.60 days by the end of 2021, suggesting a slight improvement in inventory management.
- However, in 2022, the DOH increased significantly to 214.15 days, reflecting a potential inventory management issue or slower sales.
- By the end of 2023, the DOH decreased to 155.01 days, showing some improvement from the previous year.
- In 2024, the DOH further decreased to 150.25 days, indicating a more efficient inventory turnover compared to the previous year.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on Days of Sales Outstanding for any of the years from 2020 to 2024, so we cannot analyze the company's ability to collect its accounts receivable within a specific timeframe.

3. Number of Days of Payables:
- Similar to DSO, the data does not include information on the Number of Days of Payables for the years from 2020 to 2024, preventing us from evaluating how long the company takes to pay its suppliers.

In conclusion, the company's inventory turnover improved in some years but showed a significant increase in 2022. Unfortunately, we lack data on sales outstanding and payables, limiting our ability to comprehensively assess Columbia Sportswear Company's overall efficiency and working capital management.

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Long-term

Long-term activity ratios provide insights into how effectively Columbia Sportswear Company is utilizing its assets to generate sales.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio indicates how efficiently the company is using its fixed assets to generate revenue.
- The trend shows a decrease from 8.07 in 2020 to 5.03 in 2021, possibly indicating less efficient utilization of fixed assets.
- However, there is a significant improvement in 2022, with the ratio increasing to 11.90. This suggests a substantial increase in revenue generated from fixed assets during that period.
- The absence of data for 2023 and 2024 makes it difficult to assess the ongoing trend in fixed asset turnover efficiency.

2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently the company is using all assets to generate sales.
- The ratio has shown a generally increasing trend, rising from 0.88 in 2020 to 1.13 in 2024. This indicates that Columbia Sportswear has been more effective in generating sales relative to its total asset base over time.
- The peak in 2023, with a ratio of 1.19, suggests a particularly efficient use of total assets to drive sales during that period.
- Overall, the increasing trend in total asset turnover indicates that Columbia Sportswear is improving its efficiency in generating revenue from its asset base.