National Vision Holdings Inc (EYE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 8.14 | 8.35 | 7.52 | 7.32 | 7.07 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | 15.48 | 12.18 | 7.19 |
Activity ratios provide insights into how efficiently a company manages its assets and operations. Let's analyze the activity ratios of National Vision Holdings Inc based on the provided data:
1. Inventory Turnover:
- The inventory turnover ratio measures how effectively a company sells its inventory during a specific period.
- National Vision Holdings Inc's inventory turnover has shown a steady increase from 7.07 in 2020 to 8.14 in 2024.
- The increasing trend indicates that the company is managing its inventory efficiently, selling products more quickly over time.
2. Receivables Turnover:
- Receivables turnover ratio evaluates how efficiently a company collects payments from its customers.
- The data indicates that receivables turnover information is not available for the years 2020 to 2024.
- Without this data, it is challenging to assess National Vision Holdings Inc's effectiveness in collecting payments from customers.
3. Payables Turnover:
- Payables turnover ratio measures how quickly a company pays its suppliers for goods and services.
- The data reveals that payables turnover information is not provided for the years 2020 to 2024.
- Lack of information on payables turnover restricts the assessment of the company's payment practices to its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio assesses how efficiently a company utilizes its working capital to generate sales.
- National Vision Holdings Inc's working capital turnover has shown a significant increase from 7.19 in 2020 to 15.48 in 2022, indicating improved efficiency in utilizing working capital to generate revenue.
- However, data is not available for 2023 and 2024, limiting a comprehensive analysis of the company's working capital management in recent years.
In conclusion, based on the available data, National Vision Holdings Inc exhibits positive trends in inventory turnover and working capital turnover, suggesting effective management of inventory and working capital. However, the lack of information on receivables and payables turnover ratios impedes a holistic assessment of the company's overall efficiency in managing its assets and operations.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 44.87 | 43.73 | 48.57 | 49.89 | 51.63 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, National Vision Holdings Inc's Days of Inventory on Hand (DOH) has shown a gradual decrease from 51.63 days as of December 31, 2020, to 44.87 days as of December 31, 2024. This indicates that the company has been managing its inventory more efficiently over the years, which is a positive sign as it suggests improved inventory turnover and potentially lower carrying costs.
In contrast, no data is available for Days of Sales Outstanding (DSO) and Number of Days of Payables for the years 2020 to 2024. This lack of information on DSO and payables hinders a comprehensive analysis of the company's accounts receivable and payment practices.
Overall, the downward trend in the DOH ratio suggests that National Vision Holdings Inc has been effective in managing its inventory levels, but further information on DSO and payables is required to provide a complete assessment of the company's activity ratios. Additional data on these ratios would offer insights into the company's receivables collection efficiency and its payment terms with suppliers.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 2.70 | 2.97 | 2.51 |
| Total asset turnover | 0.91 | 0.98 | 0.88 | 0.91 | 0.73 |
The Fixed Asset Turnover ratio for National Vision Holdings Inc has shown a positive trend from 2.51 in 2020 to 2.97 in 2021, slightly decreasing to 2.70 in 2022. Unfortunately, data is not available for 2023 and 2024. This ratio indicates that the company is generating $2.70 in sales revenue for every dollar invested in fixed assets in 2022.
On the other hand, the Total Asset Turnover ratio has also been improving, increasing from 0.73 in 2020 to 0.91 in 2021 and then slightly fluctuating between 0.88 and 0.91 in 2022 and 2024, respectively. In 2023, it reached a peak of 0.98, showcasing the company's ability to generate revenue relative to its total assets.
Overall, the upward trend in the Total Asset Turnover ratio suggests that National Vision Holdings Inc is becoming more efficient in generating sales from its total asset base over the years. However, the fluctuations in the Fixed Asset Turnover ratio indicate that the company may need to further optimize its utilization of fixed assets to drive higher sales revenue.