National Vision Holdings Inc (EYE)

Short-term

Turnover ratios

The activity ratios calculated for National Vision Holdings Inc based on the provided data are as follows:

1. Inventory Turnover: The inventory turnover ratio for National Vision Holdings Inc has shown a generally increasing trend over the observed periods, starting at 6.24 on March 31, 2020 and reaching 9.44 on December 31, 2024. A high inventory turnover ratio indicates that the company is efficiently managing its inventory by quickly selling and replenishing stock.

2. Receivables Turnover: There is no data available for the receivables turnover ratio for National Vision Holdings Inc for the periods provided. This could be due to the nature of the company's business where accounts receivable turnover may not be relevant or available.

3. Payables Turnover: Similar to receivables turnover, there is no information provided for the payables turnover ratio for National Vision Holdings Inc. This lack of data restricts the assessment of how quickly the company is paying its suppliers.

4. Working Capital Turnover: The working capital turnover ratio fluctuates significantly over the periods, ranging from 5.98 to 539.33. Such a wide variance could be attributed to changes in working capital efficiency, business operations, or financial reporting adjustments. A high working capital turnover ratio suggests a more efficient use of working capital in generating sales.

In conclusion, the analysis of National Vision Holdings Inc’s activity ratios indicates strong inventory turnover efficiency, but the lack of data availability for receivables and payables turnover limits the complete assessment of the company’s working capital management and creditor payment practices.

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Average number of days

Based on the provided data for National Vision Holdings Inc, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The DOH decreased from 58.52 days as of March 31, 2020, to 38.68 days as of December 31, 2024.
- A decreasing trend in DOH indicates that the company is managing its inventory more efficiently over time, holding less inventory on hand.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for the entire period provided, suggesting that the company may not track this metric or it is not disclosed in the data.
- Without DSO data, it is challenging to assess the effectiveness of the company in collecting its accounts receivable promptly.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is not available for the period provided.
- Lack of information on payables days impedes the analysis of how quickly the company pays its suppliers and manages its trade payables.

In conclusion, while National Vision Holdings Inc shows a positive trend in inventory management based on the decreasing DOH, the absence of DSO and payables days data limits a comprehensive assessment of the company's overall activity efficiency and working capital management. To gain a more holistic view of the company's operational performance, it would be beneficial to have complete data on all activity ratios over the entire period.

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Long-term

Based on the provided data, the fixed asset turnover ratio for National Vision Holdings Inc has shown a fluctuating trend over the years. It increased from 2.50 in March 2020 to a peak of 3.09 in September 2021, indicating that the company generated $3.09 in sales for every dollar invested in fixed assets during that period. However, the ratio has since declined to 2.68 as of June 30, 2023.

On the other hand, the total asset turnover ratio, which measures the efficiency of total assets in generating sales, has also varied over time. It ranged from 0.70 in June 2020 to 0.98 in March 2024. This indicates that the company generated $0.98 in sales for every dollar of total assets as of March 31, 2024.

Overall, both ratios reflect the company's ability to utilize its assets efficiently to generate revenue. The fluctuations in these ratios could be influenced by changes in the company's operations, investments in assets, or sales growth. Monitoring these ratios over time can help assess the effectiveness of National Vision Holdings Inc in managing its long-term assets.