National Beverage Corp (FIZZ)

Short-term

Turnover ratios

National Beverage Corp's activity ratios reflect the efficiency of the company in managing its inventory, receivables, payables, and working capital.

1. Inventory turnover: The inventory turnover ratio has been relatively stable over the period, ranging from 6.97 to 10.16 times. This indicates that the company is able to sell and replace its inventory multiple times during the year, showing effective inventory management.

2. Receivables turnover: National Beverage Corp's receivables turnover has fluctuated but generally remained healthy, reflecting the company's ability to collect outstanding receivables efficiently. The ratio has ranged from 10.95 to 14.19 times, indicating that the company is able to turn its accounts receivable into cash multiple times in a year.

3. Payables turnover: The payables turnover ratio has also shown variability but generally stayed within a reasonable range. A higher turnover ratio implies that the company is paying its suppliers more frequently, which can improve relationships but may also affect cash flow. National Beverage Corp's payables turnover has ranged from 7.52 to 11.28 times, indicating variations in the company's payment terms with its suppliers.

4. Working capital turnover: The working capital turnover ratio has shown fluctuations, indicating changes in the efficiency of utilizing working capital. A higher turnover ratio signifies that the company is generating more sales revenue per unit of working capital invested. The ratio has ranged from 2.47 to 9.51 times, suggesting changes in how effectively the company is utilizing its working capital to generate sales.

Overall, National Beverage Corp's activity ratios suggest that the company has been managing its assets and liabilities efficiently, although there have been some fluctuations in the ratios over the period. Monitoring these ratios can help evaluate the company's operational performance and efficiency in managing its resources.

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Average number of days

Days of Inventory on Hand (DOH):
- National Beverage Corp's days of inventory on hand have been fluctuating over the analyzed period, ranging from a low of 36.01 days to a high of 52.36 days.
- In general, the company appears to have improved its inventory management efficiency in the most recent period as indicated by the lower DOH of 40.46 days.
- A decreasing trend in DOH is usually a positive sign, suggesting that the company is selling its inventory more quickly.

Days of Sales Outstanding (DSO):
- The days of sales outstanding for National Beverage Corp have also varied over the period under review, with values fluctuating between 25.73 days and 33.33 days.
- The company exhibited a notable improvement in collection efficiency in the most recent period, with a DSO of 31.50 days.
- A lower DSO indicates that the company is collecting receivables faster, which can be interpreted as a positive sign for cash flow management.

Number of Days of Payables:
- The number of days of payables for National Beverage Corp has shown fluctuations over the analyzed period, with values ranging from 32.35 days to 49.79 days.
- The company had a relatively high number of days of payables in the past few periods, but this decreased to 37.44 days in the most recent period.
- A lower number of days of payables can imply stronger negotiations with creditors or better cash management, allowing the company to pay its obligations more promptly.

Overall, based on the activity ratios, National Beverage Corp has generally demonstrated improvements in inventory management efficiency, collection of receivables, and payables management in the most recent period, which can positively impact the company's working capital management and cash flow.

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Long-term

National Beverage Corp's fixed asset turnover ratio has shown a consistently high level over the past few years, ranging from 7.46 to 8.82. This indicates that the company generates a significant amount of sales revenue in relation to its fixed assets. The trend shows a slight decline in recent periods, suggesting that the company may be experiencing challenges in optimizing the utilization of its fixed assets to generate sales.

In contrast, the total asset turnover ratio has displayed more variability, with values fluctuating between 1.40 and 2.60. This ratio measures how efficiently the company generates sales in relation to its total assets. The upward trend in the total asset turnover ratio from 1.40 to 2.60 indicates an improvement in the company's overall asset utilization efficiency over time. However, the decline in the most recent periods could signal a potential slowdown in sales relative to total assets.

Overall, the analysis of National Beverage Corp's long-term activity ratios suggests that while the company demonstrates efficient use of fixed assets, there may be room for improvement in optimizing the utilization of total assets to drive sales growth.