Cavco Industries Inc (CVCO)

Activity ratios

Short-term

Turnover ratios

Mar 31, 2024 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
Inventory turnover 5.67 5.93 5.84 5.91 6.03 7.46 6.65 5.52 4.99 5.38 5.21 6.14 6.62 7.57 7.34 7.77 7.32 7.38 6.80 6.46
Receivables turnover 23.27 22.48 19.23 20.64 20.14 23.07 — — 13.90 — — — 12.35 12.23 13.43 12.56 24.37 13.68 12.53 13.43
Payables turnover 40.79 58.61 34.74 52.46 51.67 60.02 36.47 31.31 28.28 31.94 23.30 30.69 27.06 33.24 24.95 23.86 27.78 30.06 26.23 30.86
Working capital turnover 3.10 3.29 3.34 3.59 4.19 3.92 4.09 4.25 3.62 3.32 3.66 2.78 2.67 2.56 2.68 2.85 3.09 3.08 3.18 3.23

Cavco Industries Inc has shown relatively stable inventory turnover ratios over the past few quarters, ranging from 4.99 to 7.57. The company's inventory turnover is generally higher, indicating that inventory is selling more quickly, which is a good sign for the business.

In terms of receivables turnover, the company's performance fluctuates more, with ratios ranging from 12.23 to 24.37. This suggests that Cavco Industries is collecting its receivables at varying speeds, potentially pointing to changes in the company's credit policies or customer payment behavior.

The payables turnover ratios have also been somewhat inconsistent, ranging from 23.30 to 60.02. A higher payables turnover ratio suggests that the company is paying its suppliers more quickly, which can be beneficial for managing cash flow and relationships with suppliers.

The working capital turnover ratios for Cavco Industries Inc have shown some fluctuations, ranging from 2.56 to 4.25. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue, which can be a positive indicator of operational efficiency.

Overall, while Cavco Industries Inc's activity ratios show some variability, the company generally appears to be managing its inventory, receivables, payables, and working capital efficiently over the periods analyzed.

Average number of days

Mar 31, 2024 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
Days of inventory on hand (DOH) days 64.40 61.59 62.51 61.71 60.49 48.91 54.89 66.14 73.09 67.81 70.11 59.49 55.12 48.25 49.72 46.96 49.85 49.44 53.64 56.49
Days of sales outstanding (DSO) days 15.68 16.24 18.98 17.68 18.12 15.82 — — 26.26 — — — 29.56 29.83 27.18 29.06 14.98 26.68 29.12 27.17
Number of days of payables days 8.95 6.23 10.51 6.96 7.06 6.08 10.01 11.66 12.91 11.43 15.67 11.89 13.49 10.98 14.63 15.30 13.14 12.14 13.91 11.83

Cavco Industries Inc's activity ratios indicate the efficiency of the company's management of its inventory, receivables, and payables.

1. Days of inventory on hand (DOH):
- The trend in DOH shows an increasing number of days over the past few quarters, reaching 64.40 days at the end of March 2024.
- This suggests that the company is taking longer to sell its inventory, which may tie up capital and increase holding costs.

2. Days of sales outstanding (DSO):
- DSO fluctuates, with a decrease in the most recent quarter to 15.68 days, indicating an improvement in collecting receivables.
- A lower DSO reflects the company's ability to collect payments from customers more quickly, which improves cash flow.

3. Number of days of payables:
- The trend in the number of days of payables shows variability, with fluctuations between around 6 to 15 days.
- A lower number of days of payables means the company is paying its suppliers more quickly, which may affect cash flow but can also impact relationships with suppliers.

In summary, while Cavco Industries Inc has shown improvements in collecting receivables, there may be a need to address the increasing days of inventory on hand to enhance inventory management efficiency. The fluctuations in the number of days of payables suggest a need for consistency in managing payment terms with suppliers to maintain healthy vendor relationships.

Long-term

Mar 31, 2024 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
Fixed asset turnover 8.01 8.26 8.52 9.08 9.39 11.18 11.07 10.16 9.92 9.04 8.22 12.08 11.45 13.46 13.38 13.61 13.76 14.67 14.35 15.23
Total asset turnover 1.33 1.40 1.39 1.50 1.64 1.72 1.66 1.59 1.41 1.28 1.22 1.22 1.16 1.17 1.18 1.26 1.31 1.33 1.30 1.30

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. Cavco Industries Inc has shown a consistent trend of high fixed asset turnover over the past few quarters, indicating effective utilization of its fixed assets. The decreasing trend observed in the fixed asset turnover ratio from 15.23 in September 2019 to 8.01 in March 2024 may be a cause for concern, as it suggests a potential decline in the company's ability to generate sales from its fixed assets efficiently.

On the other hand, the total asset turnover ratio indicates how well the company generates sales from all its assets. Cavco Industries Inc has shown a stable total asset turnover ratio over the quarters, reflecting a consistent ability to generate sales relative to its total assets. The average total asset turnover ratio of around 1.35 indicates that for every dollar of total assets, the company generates approximately $1.35 in sales.

Overall, the fixed asset turnover ratio provides insight into the efficiency of Cavco Industries Inc's fixed asset management, while the total asset turnover ratio offers a broader view of the company's overall asset utilization in generating sales. Both ratios are essential in assessing the company's operational efficiency and performance in the long term.