National Beverage Corp (FIZZ)

Short-term

Turnover ratios

The activity ratios of National Beverage Corp, including inventory turnover, receivables turnover, payables turnover, and working capital turnover, reveal insights into the company's operational efficiency over the analyzed period.

Inventory Turnover:
The inventory turnover ratio indicates how efficiently the company manages its inventory levels. From July 2022 through October 2025, this ratio exhibits a relatively stable and moderate level, fluctuating in a narrow range from approximately 7.65 to 9.46. Early in the period, there is a slight upward trend, peaking around October 2022 at 9.46, suggesting improved inventory management and possibly faster inventory sales. Afterward, the ratio remains relatively steady, maintaining values around 8 to 8.9, implying consistent inventory turnover without significant deterioration or dramatic improvement.

Receivables Turnover:
Reflecting the efficiency in collecting receivables, this ratio shows a general upward trend over time. Starting at approximately 11.17 in July 2022, it gradually increases, reaching as high as 13.04 in January 2025. The increasing receivables turnover indicates an improvement in the collection process, leading to faster cash inflows from customers. Fluctuations occur but are within a relatively narrow range, emphasizing consistent receivables management.

Payables Turnover:
The payables turnover ratio measures how quickly the company pays its suppliers. The ratio exhibits notable fluctuation but shows a gradual upward trend, rising from around 9.66-10.36 in mid-2022 to approximately 11.90 in January 2025. This suggests that the company is accelerating its payments to suppliers over time, possibly reflecting improved liquidity or strategic payment practices. Periodic decreases, such as in early 2023 and mid-2024, may indicate temporary adjustments in payment schedules or supplier terms.

Working Capital Turnover:
This ratio, which assesses how effectively the company utilizes its working capital to generate sales, presents a declining trend initially, from around 9.20-9.68 in mid-2022 down to approximately 2.84-3.98 in mid to late 2024. This decline suggests a reduction in operational efficiency concerning working capital utilization during this period. However, there is a significant increase in late 2024, with values rising back to approximately 6.18 and 5.09 in January 2025, indicating a possible improvement in working capital management or sales efficiency. The period of low ratios may indicate excess working capital or less efficient operations, while the subsequent rise reflects improving operational effectiveness.

Overall Observations:
National Beverage Corp displays a generally stable inventory turnover rate, signaling steady inventory management. The upward trend in receivables turnover reflects enhanced collection efficiency, whereas the gradual increase in payables turnover suggests improved supplier payment practices or liquidity positioning. The working capital turnover trend indicates a period of decreased efficiency followed by recovery towards the end of the analyzed timeframe. These patterns collectively portray a company that has been actively managing its operating cycle, with periods of both operational challenges and subsequent improvements.

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Average number of days

The activity ratios for National Beverage Corp, as measured by Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Days of Payables, demonstrate trends over the period from July 2022 through April 2025.

Days of Inventory on Hand (DOH):
The DOH figures indicate that inventory holdings have generally remained within the range of approximately 38.57 days to 47.73 days during the observed period. There was a notable fluctuation early in the timeline, with a reduction from around 44.84 days in July 2022 to approximately 38.57 days in late October 2022. Subsequently, the levels reverted to higher figures, reaching a peak of approximately 47.73 days in April 2023. After this peak, a declining trend appears, with DOH decreasing gradually to around 41.01 days in April 2025. This suggests a general trend of improving inventory management efficiency, reducing inventory holding periods over time.

Days of Sales Outstanding (DSO):
The DSO figures suggest that accounts receivable collection periods have been relatively stable, fluctuating between roughly 29 and 35 days. Initially, DSOs hovered slightly above 32 days in mid-2022, decreasing slightly to under 30 days in late 2023, with occasional increases up to around 35 days in mid-2024. The recent data indicates a downward trend in receivables collection periods, with DSO narrowing to approximately 28 days by January 2025. This improvement demonstrates an enhancement in receivables management, leading to quicker cash conversion from sales.

Number of Days of Payables:
The payable days varied from approximately 31.81 days to 43.41 days over the period. There was an initial average around 37–40 days, with a marked increase to approximately 42.50 days in April 2023. Subsequently, the number of payable days decreased gradually, reaching around 30–33 days by January 2025. This trend indicates a possible acceleration in the timing of paying suppliers, which might reflect tighter cash management or changes in supplier terms.

Overall Observation:
Across all three activity ratios, there is a discernible pattern of increasing efficiency; inventory levels are somewhat reduced over time, collection periods are shortened, and the delay in paying suppliers has decreased. Together, these trends suggest a strategic effort toward optimizing working capital and enhancing operational efficiency. The company's ability to manage inventory more tightly, expedite receivables, and streamline payables aligns with effective cash flow management, potentially improving liquidity and overall financial performance over the analyzed period.

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Long-term

The long-term activity ratios for National Beverage Corp, as reflected in the fixed asset turnover and total asset turnover over several reporting periods, exhibit notable trends and fluctuations indicative of the company's asset utilization efficiency.

Fixed Asset Turnover:
The ratio demonstrates an overall upward trend from July 2022 through October 2023. Specifically, the ratio increased from 6.52 at the end of July 2022 to 8.63 in late October 2022, suggesting improved utilization of fixed assets to generate sales during this period. This upward movement indicates the company was leveraging its fixed assets more effectively, likely through operational efficiencies or strategic asset management. After this peak, the ratio appears to decline slightly, with values around 7.81 in July 2023 and dropping further to 6.46 in October 2023. The data for early 2024 show the ratio remaining within a similar range (~7.12), again indicating some fluctuation but no significant deterioration in fixed asset efficiency. Overall, the fixed asset turnover ratio has experienced periods of strengthening, particularly in late 2022, but has generally stabilized around the mid to high sevens, reflecting consistent fixed asset utilization.

Total Asset Turnover:
The total asset turnover ratio follows a similar pattern, beginning at 2.46 at the end of July 2022 and rising slightly to 2.59 in late July 2022. It then declines gradually over subsequent periods, reaching a low of approximately 1.47 in April 2024. This declining trend suggests a reduction in the efficiency of the company’s overall asset base in generating sales, potentially due to asset growth outpacing sales increases or operational challenges. Notably, there is a partial recovery later in 2024, with values rising back to 2.29 in October 2024 and nearly 2.00 by January 2025, indicating some improvement in asset utilization efficiency.

Overall Assessment:
The data indicates that National Beverage Corp experienced periods of improved efficiency in utilizing both fixed assets and total assets in late 2022, with the ratios peaking before stabilizing or slightly declining into 2023 and early 2024. The fluctuations in fixed asset turnover suggest localized operational improvements or investments in assets that temporarily enhanced efficiency, while the overall asset turnover reveals a trend of decreasing efficiency over the period, possibly attributable to increased asset base or external market factors. The partial recovery at the later stages of 2024 points toward strategic adjustments or operational efficiencies being regained.