National Beverage Corp (FIZZ)

Short-term

Turnover ratios

The activity ratios of National Beverage Corp for the period under review exhibit notable trends and fluctuations, reflecting changes in operational efficiency.

Inventory Turnover:
The ratio remained stable at 8.29 on April 29 and 30, 2023. It increased to 9.02 by April 27 and 30, 2024, indicating an improvement in inventory management and faster inventory turnover. However, in 2025, the ratio declined slightly to 8.90, suggesting a modest slowdown in inventory clearance but still remaining higher than the 2023 levels.

Receivables Turnover:
The receivables turnover ratio was consistent at 11.18 during April 2023. It experienced an increase to 11.59 by April 27 and 30, 2024, reflecting enhanced collection efficiency. The ratio slightly decreased to 11.53 in April 2025, but overall, it indicates that the company maintained a high level of efficiency in converting receivables into cash throughout the period.

Payables Turnover:
The payables turnover ratio was steady at 9.12 in April 2023. It rose to 9.75 by April 27 and 30, 2024, indicating that the company was paying its suppliers more quickly or managing payables more actively. In April 2025, the ratio decreased somewhat to 9.19, suggesting a slight extension in payment periods but maintaining a relatively stable payables management compared to previous years.

Working Capital Turnover:
This ratio was 5.28 in April 2023 and remained unchanged at the end of April 2023. It significantly declined to 2.99 in April 2024, indicating a reduction in the efficiency of utilizing working capital to generate sales. By April 2025, the ratio recovered to 4.51, approaching previous levels but still below the 2023 figure, implying an improvement in operational efficiency but not yet returning to prior performance levels.

Summary:
Overall, National Beverage Corp demonstrated improvements in inventory and receivables turnover ratios during the period, reflecting enhanced operational efficiency in managing inventory and collecting receivables. The payables turnover remained relatively stable, with minor fluctuations, indicating consistent payables management. The working capital turnover experienced more substantial fluctuations, with a notable decline in 2024 followed by partial recovery in 2025, which may warrant further analysis to understand underlying operational factors affecting working capital utilization.

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Average number of days

The activity ratios for National Beverage Corp indicate modest shifts over the observed periods, reflecting the company's operational efficiency in inventory management, accounts receivable collection, and payable liabilities.

The Days of Inventory on Hand (DOH) decreased from 44.01 days as of April 29 and 30, 2023, to 40.46 days on April 27 and 30, 2024, signifying an improvement in inventory turnover and possibly a more efficient inventory management approach. However, there was a slight increase to 41.01 days by April 30, 2025, suggesting a minor elongation in inventory holding periods that may warrant monitoring.

The Days of Sales Outstanding (DSO) exhibited a slight decline from 32.65 days in 2023 to approximately 31.50 days in 2024, indicating an improvement in receivables collection efficiency. This upward movement to 31.65 days in 2025 suggests a stabilization of collection practices, maintaining relatively short credit periods extended to customers.

The Number of Days of Payables increased from 40.02 days in 2023 to 37.44 days in 2024, reflecting a slight reduction in the time taken to settle supplier invoices. By 2025, payables rose again to 39.73 days, nearing the initial levels, which indicates a consistent approach to managing trade payables with a tendency toward extending payment terms.

Overall, the activity ratios suggest that National Beverage Corp has maintained a generally stable operational cycle with slight improvements in inventory and receivables management. The company's payables management demonstrates a comparative approach to supplier payments, with periods of extension that align with industry practices. Continuous monitoring is advisable to sustain these efficiencies and identify any emerging trends that could impact liquidity or operational performance.

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Long-term

The analysis of National Beverage Corp's long-term activity ratios reveals notable insights into its asset utilization efficiency over the specified periods.

Regarding the Fixed Asset Turnover ratio, which measures how effectively the company utilizes its fixed assets to generate sales, the data indicates stability between April 29, 2023, and April 30, 2023, at a value of 7.90. However, there is a decline observed by April 27, 2024, reaching 7.46, suggesting a modest reduction in the efficiency of fixed asset utilization compared to the previous year. The absence of data for April 30, 2024, and April 30, 2025, precludes further trend analysis, but the prior decline may highlight either increased capital investment not yet reflected in sales or operational adjustments affecting fixed asset productivity.

In contrast, the Total Asset Turnover ratio, which assesses the overall efficiency in using total assets to generate sales, demonstrates a downward shift from 2.04 on April 29 and April 30, 2023, to 1.55 on April 27, 2024. This decrease indicates a reduction in the company's effectiveness in leveraging its total asset base for revenue generation during this period. The following year shows an improvement with the ratio rising to 1.79 as of April 30, 2025, suggesting a partial recovery or strategic adjustments leading to better asset utilization.

Overall, the long-term activity ratios suggest a recent decline in asset efficiency, particularly evident in the total asset turnover. The slight decrease in fixed asset turnover further corroborates this trend, although it remains at a relatively high level. The subsequent improvement in total asset turnover hints at possible operational efficiencies or strategic initiatives aimed at enhancing asset utilization. Continuous monitoring of these ratios will be necessary to determine if the company sustains this upward trajectory or encounters further fluctuations in its long-term asset management performance.