Fox Factory Holding Corp (FOXF)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.40 | 2.69 | 3.06 | 3.10 | 4.73 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.98 | 2.61 | 2.97 | 2.63 | 2.14 |
The inventory turnover ratio of Fox Factory Holding Corp has shown a declining trend over the years, decreasing from 4.73 in 2020 to 2.40 in 2024. This indicates that the company is taking longer to sell its inventory, which could be a cause for concern as it may lead to excess inventory and potential obsolescence.
The receivables turnover ratio data is not provided for any of the years, so it is not possible to analyze the efficiency of the company in collecting its accounts receivable.
Similarly, the payables turnover ratio data is also not available, making it impossible to assess how long it takes for Fox Factory Holding Corp to pay its suppliers.
The working capital turnover ratio has shown a fluctuating pattern, with a peak in 2022 at 2.97. This ratio measures how effectively the company is utilizing its working capital to generate sales. The generally increasing trend in this ratio indicates that Fox Factory Holding Corp is managing its working capital efficiently to support its sales growth, although there was a slight dip in 2023 followed by a rebound in 2024.
Overall, the decreasing trend in inventory turnover raises a concern about the management of inventory, while the working capital turnover ratio suggests improving efficiency in utilizing working capital for generating sales. The lack of data for receivables and payables turnover ratios limits a comprehensive analysis of Fox Factory Holding Corp's activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 152.24 | 135.81 | 119.48 | 117.85 | 77.18 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Fox Factory Holding Corp's Days of Inventory on Hand (DOH) has increased steadily over the past five years, from 77.18 days as of December 31, 2020, to 152.24 days as of December 31, 2024. This indicates that the company is holding inventory for a longer period before it is sold, which may tie up working capital and increase storage costs.
The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available for analysis due to missing values for all years. However, generally, a lower DSO is preferred as it signifies that the company is collecting its accounts receivable quickly, while a higher number of Days of Payables indicates that the company is taking longer to pay its suppliers, which can be beneficial for preserving cash flow.
Overall, the increase in Days of Inventory on Hand for Fox Factory Holding Corp warrants further investigation to understand the reasons behind this trend and its potential impact on the company's operational efficiency and financial performance.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 6.40 | 5.63 | 5.45 |
| Total asset turnover | 0.62 | 0.65 | 0.99 | 0.86 | 0.69 |
Fox Factory Holding Corp's long-term activity ratios demonstrate the efficiency with which the company utilizes its assets to generate sales.
The Fixed Asset Turnover ratio has shown a steady improvement from 5.45 in 2020 to 6.40 in 2022, indicating that the company has been able to generate more revenue from its fixed assets over time. However, the data for 2023 and 2024 is not available, so further analysis of this trend is not possible.
In terms of Total Asset Turnover, the ratio has shown mixed performance. It increased significantly from 0.69 in 2020 to 0.99 in 2022, suggesting that the company generated more sales for each dollar of total assets during this period. However, the ratio declined to 0.62 by the end of 2024, indicating a potential decrease in efficiency in utilizing total assets to generate revenue.
Overall, while the Fixed Asset Turnover ratio has shown improvement, the fluctuation in the Total Asset Turnover ratio signals the need for further monitoring to ensure efficient asset utilization and sustainable revenue generation in the long term.