Cavco Industries Inc (CVCO)

Short-term

Turnover ratios

Based on the provided data, we can analyze Cavco Industries Inc's activity ratios as follows:

1. Inventory Turnover:
- The inventory turnover ratio shows how efficiently the company manages its inventory. A higher ratio indicates that the company is selling its inventory more quickly. Cavco Industries Inc's inventory turnover has fluctuated over the years, with a peak of 6.62 in 2021 and a low of 4.99 in 2022. The ratio has shown some improvement since then, with a trend upwards to 6.13 in 2025, indicating better inventory management.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company collects payments from its customers. A higher ratio suggests that the company is collecting its receivables quickly. Cavco Industries Inc's receivables turnover has generally increased over the years, with a significant rise from 10.62 in 2021 to 19.04 in 2025. This improvement suggests that the company has been more effective in collecting payments from customers.

3. Payables Turnover:
- The payables turnover ratio reflects how long the company takes to pay its suppliers. Unfortunately, there seems to be missing data for the payables turnover in 2025. However, from the available data, we can see that Cavco Industries Inc has generally been able to manage its payables effectively, with an increasing trend from 27.06 in 2021 to 40.79 in 2024, indicating efficient payment practices.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company generates revenue relative to its working capital. A higher ratio indicates a better utilization of working capital. Cavco Industries Inc's working capital turnover has shown fluctuations over the years, ranging from 2.21 in 2025 to 4.19 in 2023. The ratio decreased from 3.62 in 2022 to 2.21 in 2025, suggesting a potential need for the company to better utilize its working capital in generating revenue.

Overall, Cavco Industries Inc has shown improvements in its inventory and receivables turnover ratios, indicating better inventory management and efficient collection of receivables. The payables turnover ratio also suggests that the company has been managing its payments effectively. However, the working capital turnover ratio has fluctuated, signaling the need for the company to focus on optimizing its working capital efficiency for revenue generation.

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Average number of days

Cavco Industries Inc's activity ratios show trends in how efficiently the company manages its inventory, extends credit to customers, and pays its suppliers.

1. Days of Inventory on Hand (DOH): The DOH ratio measures how many days, on average, inventory is held before being sold. A lower DOH indicates faster inventory turnover and efficient management of inventory. Cavco Industries Inc saw fluctuations in its DOH over the years, with a peak of 73.09 days in 2022 and a low of 55.12 days in 2021. The company has made improvements in inventory management as the DOH decreased to 59.51 days in 2025, indicating better efficiency in selling its inventory.

2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for Cavco Industries Inc to collect revenue from its credit sales. A lower DSO suggests faster collection of receivables and efficient credit management. The company showed a consistent decrease in DSO from 34.36 days in 2021 to 19.17 days in 2025. This implies that Cavco Industries Inc has been more effective in collecting payments from customers, enhancing its cash flow and liquidity position.

3. Number of Days of Payables: The number of days of payables ratio reflects how long, on average, Cavco Industries Inc takes to pay its suppliers. A lower number of days indicates faster payment to suppliers. The company demonstrated a significant improvement in this ratio, with a decrease from 13.49 days in 2021 to 7.06 days in 2023, reflecting a more efficient payment system. However, data for 2025 seems to be missing, as indicated by "— days," which may suggest the need for further information to evaluate the company's current payables management.

Overall, the improving trend in activity ratios for Cavco Industries Inc indicates enhanced operational efficiency and effective management of working capital components over the years.

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Long-term

Long-term activity ratios provide insight into how effectively a company utilizes its assets to generate sales over an extended period.

1. Fixed Asset Turnover:
- March 31, 2021: 9.80
- March 31, 2022: 8.99
- March 31, 2023: 9.39
- March 31, 2024: Not available
- March 31, 2025: Not available

- Cavco Industries Inc's fixed asset turnover has shown variations over the years. It indicates how efficiently the company generates sales using its fixed assets. The trend from 2021 to 2023 shows a slight decrease in the ratio, suggesting a potential decrease in efficiency in asset utilization. However, without data for 2024 and 2025, a comprehensive trend analysis is not possible.

2. Total Asset Turnover:
- March 31, 2021: 1.16
- March 31, 2022: 1.41
- March 31, 2023: 1.64
- March 31, 2024: 1.33
- March 31, 2025: Not available

- The total asset turnover of Cavco Industries Inc has generally increased from 2021 to 2023, indicating improved efficiency in generating sales relative to its total assets. However, there seems to be a slight decrease in 2024 compared to 2023, which could be a sign of less effective asset utilization.

In conclusion, analyzing long-term activity ratios such as fixed asset turnover and total asset turnover is crucial for understanding how well a company is making use of its assets to generate revenue. The trends observed in these ratios provide valuable insights into Cavco Industries Inc's operational efficiency over the years.