National Beverage Corp (FIZZ)

Short-term

Turnover ratios

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

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory. A higher ratio indicates that the company is selling its inventory quickly.
- National Beverage Corp's inventory turnover has shown a generally increasing trend over the periods analyzed, starting at 6.76 in April 2022 and reaching 8.76 in January 2025. This suggests an improvement in inventory management efficiency over time.

2. Receivables Turnover:
- The receivables turnover ratio measures how quickly the company is collecting its accounts receivable. A higher ratio indicates that the company is efficiently collecting payments from its customers.
- National Beverage Corp's receivables turnover varies across the periods, with some periods showing no data. The ratios range from 10.71 to 12.33, indicating relatively good efficiency in collecting payments from customers.

3. Payables Turnover:
- The payables turnover ratio measures how quickly the company is paying its suppliers. A higher ratio suggests that the company is efficiently managing its payables.
- National Beverage Corp's payables turnover also fluctuates across the periods, with some periods having no data. The ratios range from 8.59 to 11.47, indicating varying levels of efficiency in managing payments to suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales. A higher ratio indicates more effective utilization of working capital.
- National Beverage Corp's working capital turnover ratios decrease over the periods analyzed, starting at 8.40 in April 2022 and declining to 5.09 in January 2025. This suggests a decrease in the efficiency of working capital utilization to generate sales.

Overall, National Beverage Corp has shown improvements in inventory turnover and efficient management of receivables and payables turnover. However, the declining trend in working capital turnover may be a concern and should be monitored for its impact on the company's operational efficiency.

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Average number of days

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

1. Days of Inventory on Hand (DOH):
- DOH represents the number of days it takes for the company to sell its entire inventory.
- The trend shows a gradual decrease in DOH from 54.00 days in April 2022 to 41.65 days in January 2025.
- A decreasing DOH indicates that the company is selling its inventory more quickly, which can be a positive sign of efficient inventory management.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect payments from its customers.
- The data shows variations in DSO, with values ranging from 29.61 days to 34.09 days during the period.
- DSO can be influenced by the company's credit policies and the efficiency of its accounts receivable management.

3. Number of Days of Payables:
- This ratio reflects the number of days the company takes to pay its suppliers.
- The company's payables days range from 31.81 days to 42.50 days over the period.
- A longer payable period may indicate better cash flow management but could also strain relationships with suppliers if extended too far.

Overall, the trends in these activity ratios suggest that National Beverage Corp has been effectively managing its inventory, receivables, and payables over the analyzed period. However, further analysis in conjunction with other financial metrics is recommended to gain a comprehensive understanding of the company's operational efficiency and financial health.

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Long-term

The fixed asset turnover ratio for National Beverage Corp has fluctuated over the reporting periods, indicating the company's efficiency in generating sales from its investment in fixed assets. The ratio peaked at 8.63 on October 31, 2022, suggesting that the company was able to generate $8.63 in sales for every $1 invested in fixed assets at that time. However, it decreased to 6.46 on July 31, 2023, before rebounding to 8.13 on October 28, 2023. The latest available data shows a fixed asset turnover ratio of 7.12 on April 27, 2024.

On the other hand, the total asset turnover ratio reflects how efficiently the company is using all its assets to generate revenue. National Beverage Corp's total asset turnover ratio also varied over the reporting periods. The ratio was highest at 2.59 on July 31, 2022, indicating that the company generated $2.59 in sales for every $1 of total assets. However, the ratio decreased consistently over subsequent periods, reaching its lowest point of 1.47 on April 30, 2024. The total asset turnover ratio increased to 2.29 on July 31, 2024, and stood at 2.18 on October 31, 2024, indicating some improvement in asset utilization efficiency.

Overall, the trends in both fixed asset turnover and total asset turnover ratios suggest fluctuations in the company's efficiency in utilizing its assets to generate sales. Investors and analysts may want to further investigate the factors influencing these fluctuations to assess the company's operational efficiency and financial performance.