Fox Factory Holding Corp (FOXF)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.45 | 3.79 | 3.86 | 5.97 | 4.81 |
| Receivables turnover | 8.47 | 7.98 | 9.08 | 7.26 | 8.16 |
| Payables turnover | 12.32 | 10.12 | 10.80 | 8.21 | 11.20 |
| Working capital turnover | 2.58 | 2.97 | 2.61 | 2.11 | 3.94 |
Fox Factory Holding Corp's activity ratios provide insight into how efficiently the company is managing its assets and liabilities.
1. Inventory turnover:
- The inventory turnover ratio has decreased from 5.97 in 2020 to 3.45 in 2023. This suggests that the company is taking longer to sell its inventory compared to previous years.
2. Receivables turnover:
- The receivables turnover ratio has shown fluctuations over the years, with a peak in 2021 at 9.08. This ratio indicates how quickly the company collects its outstanding receivables.
3. Payables turnover:
- The payables turnover ratio has generally been increasing, from 8.21 in 2020 to 12.32 in 2023. This suggests that the company is taking longer to pay its suppliers, which may imply improved cash flow management.
4. Working capital turnover:
- The working capital turnover ratio has fluctuated over the years, with a peak in 2019 at 3.94. This ratio indicates how efficiently the company generates revenue relative to its working capital.
Overall, the analysis of Fox Factory Holding Corp's activity ratios reveals trends in inventory management, receivables collection, payables payment, and working capital efficiency over the five-year period considered. A deeper dive into the company's operations and industry benchmarks could provide further context for these ratios.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 105.78 | 96.42 | 94.57 | 61.16 | 75.94 |
| Days of sales outstanding (DSO) | days | 43.11 | 45.76 | 40.20 | 50.26 | 44.71 |
| Number of days of payables | days | 29.63 | 36.07 | 33.79 | 44.47 | 32.59 |
Days of Inventory on Hand (DOH) has been increasing over the past five years, indicating that the company is holding onto inventory for a longer period before selling it. This could potentially tie up capital and increase carrying costs.
Days of Sales Outstanding (DSO) show a slight fluctuation over the years, with a decrease in 2020 followed by an increase in 2021 and a slight decrease in 2023. This metric measures how long it takes for the company to collect its accounts receivable. Lower DSO values are generally preferred as they indicate faster collection of revenue from sales.
Number of Days of Payables has been fluctuating over the years, with a noticeable decrease in 2023 compared to the previous year. A decreasing trend in this metric could indicate that the company is paying its suppliers more quickly.
In summary, Fox Factory Holding Corp's inventory management could be improved as indicated by the increasing DOH. The DSO is relatively stable, but efforts could be made to optimize collections. The decreasing trend in the Number of Days of Payables could suggest efficient management of payables but it is essential to maintain a balance to ensure cash flow stability.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 6.11 | 7.91 | 6.72 | 5.39 | 6.90 |
| Total asset turnover | 0.65 | 0.99 | 0.85 | 0.68 | 1.23 |
The fixed asset turnover ratio for Fox Factory Holding Corp has shown fluctuating trends over the past five years, ranging from 5.39 to 7.91. This ratio measures the efficiency of the company in generating revenue from its investment in fixed assets. A higher ratio indicates better utilization of fixed assets to generate sales.
On the other hand, the total asset turnover ratio has also displayed variability, with values ranging from 0.65 to 1.23 during the same period. This ratio reflects how effectively the company is utilizing all its assets to generate revenue.
Comparing the two ratios, it is observed that the company has been more efficient in generating sales from its fixed assets compared to its total assets. The decrease in both ratios from 2022 to 2023 may indicate a potential decline in asset efficiency or a shift in the company's business strategy.
Overall, further analysis of the reasons behind these fluctuations and a comparison with industry benchmarks would provide deeper insights into Fox Factory Holding Corp's long-term activity performance.