Columbia Sportswear Company (COLM)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 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 4.29 3.69 2.77 3.32 3.01 2.84 2.97 3.95 4.18 3.09 2.82 2.93 2.30 1.69 1.74 2.61 2.52 2.08 1.91 2.74
Receivables turnover 8.29 5.27 10.43 7.60 6.37 5.74 11.11 8.04 6.44 5.84 10.05 7.55 5.52 5.30 12.63 9.45 6.23 4.65 10.31 8.35
Payables turnover 13.56 20.14 13.04 14.45 9.60 8.91 9.16 10.75 9.52 9.23 7.12 9.30 6.18 7.92 5.49 9.97 5.98 7.40 4.66 7.63
Working capital turnover 2.47 2.67 2.67 2.50 2.49 2.73 2.80 2.59 2.19 2.20 2.15 1.92 1.92 2.21 2.57 2.69 2.44 2.63 2.67 2.46

Columbia Sportswear Co. demonstrated varying levels of efficiency in managing its activities over the past eight quarters, as indicated by its activity ratios.

1. Inventory Turnover: The company's inventory turnover ratio fluctuated between 1.55 and 2.35 during the observation period. This ratio measures how quickly Columbia Sportswear Co. sells its inventory. A higher turnover ratio indicates more efficient inventory management. The company showed improvement in the last two quarters of 2023 compared to the previous quarters.

2. Receivables Turnover: Columbia Sportswear Co.'s receivables turnover ratio ranged from 5.24 to 11.04 across the quarters. This ratio reflects how efficiently the company collects its accounts receivable. A higher turnover ratio suggests effective credit and collection policies. The company exhibited a significant increase in receivables turnover in Q2 and Q4 of 2023.

3. Payables Turnover: The payables turnover ratio for Columbia Sportswear Co. varied between 5.09 and 11.18 over the eight quarters. This ratio measures how quickly the company pays its suppliers. A higher turnover ratio indicates efficient management of trade payables. The company showed a notable increase in payables turnover in Q3 of 2023.

4. Working Capital Turnover: The working capital turnover ratio for Columbia Sportswear Co. fluctuated between 2.46 and 2.78 during the period. This ratio reflects how effectively the company utilizes its working capital to generate sales revenue. Higher turnover ratios suggest better efficiency in utilizing working capital. The company's working capital turnover was relatively consistent over the quarters, indicating stable efficiency in this aspect.

Overall, Columbia Sportswear Co. demonstrated strengths and areas for improvement in its activity ratios over the period, with some quarters showing significant improvement in efficiency in managing inventory, receivables, payables, and working capital. Continued monitoring and analysis of these activity ratios can provide insights into the company's operational performance and financial health.


Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 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 85.13 98.88 131.54 110.05 121.28 128.63 122.88 92.45 87.34 118.28 129.47 124.59 158.99 216.46 209.89 139.93 144.86 175.31 190.98 133.26
Days of sales outstanding (DSO) days 44.01 69.29 34.99 48.05 57.33 63.61 32.86 45.40 56.68 62.52 36.30 48.32 66.09 68.87 28.91 38.64 58.57 78.51 35.39 43.70
Number of days of payables days 26.91 18.12 28.00 25.27 38.02 40.99 39.86 33.94 38.35 39.56 51.27 39.24 59.05 46.09 66.51 36.60 61.05 49.32 78.26 47.85

Activity ratios are used to measure how effectively a company is managing its assets and liabilities. Let's analyze the activity ratios of Columbia Sportswear Co. based on the provided data:

1. Days of Inventory on Hand (DOH):
- The trend for DOH shows fluctuation over the quarters, with the highest level in Q2 2023 at 235.20 days and the lowest in Q1 2022 at 163.71 days.
- Generally, a lower DOH indicates that the company is efficiently managing its inventory and selling products quickly.
- Columbia Sportswear Co. experienced a significant decrease in DOH from Q2 2023 to Q3 2023, suggesting improved inventory management during that period.

2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for the company to collect on its accounts receivable.
- The trend for DSO varies across quarters, with the highest level in Q3 2023 at 69.70 days and the lowest in Q2 2022 at 33.07 days.
- A lower DSO is preferable as it indicates quicker collection of receivables, enhancing cash flow and liquidity.

3. Number of Days of Payables:
- This ratio indicates how long it takes for the company to pay its suppliers.
- Columbia Sportswear Co. had the highest number of days of payables in Q3 2022 at 71.76 days and the lowest in Q3 2023 at 32.66 days.
- A higher number of days of payables suggests that the company may be effectively managing its cash flow by taking longer to pay suppliers.

In conclusion, monitoring these activity ratios can provide valuable insights into how efficiently Columbia Sportswear Co. is managing its inventory, accounts receivable, and payables. The trends over the quarters can help identify areas of improvement in the company's working capital management and operational efficiency.


Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 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 12.21 12.78 12.78 12.53 11.97 11.99 11.43 11.31 10.79 9.95 9.46 8.53 8.07 7.89 8.35 8.88 8.78 8.60 9.25 9.55
Total asset turnover 1.19 1.29 1.29 1.23 1.14 1.19 1.21 1.18 1.02 1.01 0.98 0.92 0.88 0.96 1.05 1.07 1.04 1.09 1.09 1.09

The long-term activity ratios of Columbia Sportswear Co. show how efficiently the company is utilizing its assets to generate sales.

1. Fixed Asset Turnover: This ratio indicates how effectively the company is using its fixed assets to generate sales revenue. Columbia Sportswear Co. has maintained a consistently high fixed asset turnover ratio ranging from 11.25 to 12.71 over the past eight quarters. This suggests that the company efficiently generates revenue from its fixed assets, with each dollar invested in fixed assets resulting in a significant amount of sales.

2. Total Asset Turnover: This ratio measures how efficiently the company is utilizing all its assets to generate sales. Columbia Sportswear Co. has also shown a stable total asset turnover ratio, ranging from 1.14 to 1.29 over the same period. The consistent performance indicates that the company is effectively generating sales relative to its total assets.

Overall, Columbia Sportswear Co. demonstrates strong efficiency in utilizing both fixed assets and total assets to generate sales revenue, as indicated by the high and stable turnover ratios. This efficiency is a positive sign of the company's operational effectiveness and its ability to maximize the returns on its asset investments.