National Beverage Corp (FIZZ)

Short-term

Turnover ratios

Based on the provided data for National Beverage Corp, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio indicates how many times a company sells and replenishes its inventory within a specific period.
- National Beverage Corp's inventory turnover has been improving consistently from 6.97 in April 2022 to 9.02 in April 2024.
- This suggests that the company is managing its inventory efficiently and quickly converting it into sales, which can help improve cash flow and reduce holding costs.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects its outstanding receivables during a given period.
- National Beverage Corp's receivables turnover was not available for April 30, 2022 and April 30, 2023, but it increased to 11.59 by April 27, 2024.
- The higher turnover indicates that the company is collecting its receivables faster, which is positive for cash flow and liquidity.

3. Payables Turnover:
- The payables turnover ratio shows how quickly a company pays its suppliers for goods and services.
- National Beverage Corp's payables turnover was not available for April 30, 2022 and April 30, 2023, but it increased to 9.75 by April 27, 2024.
- A higher payables turnover ratio suggests that the company is managing its payables effectively and may be taking advantage of favorable credit terms.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales.
- National Beverage Corp's working capital turnover decreased from 8.81 in April 2022 to 2.99 in April 2024.
- The declining trend could indicate a decrease in sales relative to working capital, which may require further investigation into the company's operational efficiency.

Overall, National Beverage Corp has shown improvements in its inventory turnover, receivables turnover, and payables turnover, indicating effective management of its operational activities. However, the decline in working capital turnover warrants closer attention to ensure optimal utilization of resources.

---

Average number of days

National Beverage Corp's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- National Beverage Corp's DOH has shown a decreasing trend over the years, suggesting that the company is managing its inventory more effectively.
- In April 2024, the DOH was 40.46 days, indicating that on average, the company holds inventory for about 40 days before selling it.
- The decreasing trend in DOH indicates that the company may be improving inventory turnover and avoiding excess inventory buildup.

2. Days of Sales Outstanding (DSO):
- National Beverage Corp's DSO shows fluctuations, with values reported for some years and '— days' for others.
- In April 2024, the DSO was 31.50 days, indicating that on average, it takes the company about 31 days to collect receivables.
- The decreasing trend in DSO implies that the company may be improving its credit and collection processes, leading to faster cash conversion from sales.

3. Number of Days of Payables:
- National Beverage Corp's data shows '— days' for some years, making it challenging to analyze the trend consistently.
- In April 2024, the number of days of payables was reported as 37.44 days, suggesting that the company takes approximately 37 days to pay its suppliers.
- A lower number of days of payables may indicate that the company is managing its payables efficiently while maintaining good relationships with suppliers.

Overall, National Beverage Corp's activity ratios indicate improvements in managing inventory, collecting receivables, and paying payables efficiently. Further analysis over additional periods could provide a more comprehensive view of the company's operational performance.

---

Long-term

National Beverage Corp's fixed asset turnover has shown a positive trend over the period analyzed, increasing from 6.56 in April 30, 2022, to 7.90 in both April 29, 2023, and April 30, 2023, before slightly decreasing to 7.46 in April 27, 2024. This indicates that the company is generating more sales revenue relative to its investment in fixed assets, reflecting increased efficiency in utilizing its fixed assets.

However, the total asset turnover ratio paints a different picture, showing a decline from 2.43 in April 30, 2022, to 1.55 in both April 27, 2024, and April 30, 2024. This suggests that National Beverage Corp's ability to generate sales revenue from its total assets has decreased over the period, indicating a decrease in overall asset efficiency.

In conclusion, while National Beverage Corp has shown improvement in its fixed asset turnover, the decline in total asset turnover raises concerns about the company's overall efficiency in utilizing its assets to generate revenue.