Fox Factory Holding Corp (FOXF)

Short-term

Turnover ratios

Fox Factory Holding Corp's activity ratios indicate the company's efficiency in managing its resources.

1. Inventory turnover:
- The inventory turnover ratio has been fluctuating over the years, ranging from a high of 4.73 in December 2020 to a low of 2.43 in September 2024.
- A decreasing trend observed from 2023 onwards suggests a longer time taken to sell inventory, possibly signaling inventory management challenges.

2. Receivables turnover:
- No data available for receivables turnover, which makes it difficult to assess the company's efficiency in collecting receivables.

3. Payables turnover:
- Similar to receivables turnover, there is no data provided for payables turnover, limiting the assessment of the company's payment practices to suppliers.

4. Working capital turnover:
- The working capital turnover ratio has been relatively stable over the years, indicating consistent efficiency in generating revenue relative to the working capital employed.
- An increase in the ratio from 2.43 in March 2022 to a peak of 2.98 in December 2024 may suggest improved efficiency in utilizing working capital.

In conclusion, while Fox Factory Holding Corp demonstrates stable efficiency in generating revenue relative to working capital, there are indications of challenges in inventory management based on the fluctuating inventory turnover ratios. Additional information on receivables and payables turnovers would provide a more comprehensive analysis of the company's activity ratios.

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Average number of days

Based on the data provided, we can analyze the activity ratios for Fox Factory Holding Corp as follows:

1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand has been steadily increasing over the periods, indicating that Fox Factory Holding Corp is taking longer to sell its inventory.
- The trend shows a fluctuation between periods with some periods showing a slight decrease while others show an increase.
- As of December 31, 2024, Fox Factory Holding Corp had 149.66 days' worth of inventory on hand, which is a significant increase compared to the earlier periods.

2. Days of Sales Outstanding (DSO):
- The data provided does not contain information on Days of Sales Outstanding (DSO), which is the average number of days it takes a company to collect revenue after a sale has been made.
- The absence of DSO data makes it challenging to assess Fox Factory Holding Corp's efficiency in collecting its accounts receivable.

3. Number of Days of Payables:
- Similar to DSO, the data doesn't include information on the Number of Days of Payables, which measures the average number of days it takes a company to pay its suppliers.
- Without this data, it is difficult to determine how effectively Fox Factory Holding Corp manages its payables and cash flow cycle.

In summary, based on the available data on the Days of Inventory on Hand, Fox Factory Holding Corp seems to be facing challenges in efficiently managing its inventory levels, which could impact its working capital management and overall operational efficiency. However, the lack of information on DSO and payables hinders a complete assessment of the company's activity ratios.

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Long-term

The fixed asset turnover ratio for Fox Factory Holding Corp has shown a fluctuating trend over the years, ranging from a high of 6.22 in June 2022 to a low of 5.03 in March 2021. This ratio indicates the efficiency of the company in generating sales revenue from its investments in fixed assets such as property, plant, and equipment. A higher fixed asset turnover ratio suggests that Fox Factory is using its fixed assets effectively to generate sales.

On the other hand, the total asset turnover ratio has also varied over the years, with a peak of 0.99 in December 2022 and a trough of 0.59 in June 2024. This ratio reflects how well the company is utilizing all its assets to generate revenue. A higher total asset turnover ratio indicates that Fox Factory is efficiently generating sales relative to the total assets it owns.

Overall, the analysis of these long-term activity ratios suggests that Fox Factory Holding Corp has generally maintained efficient utilization of both fixed and total assets over the years, with some fluctuations in performance reflected in the ratios. Further monitoring of these ratios will help assess the company's continued operational efficiency and asset management strategies.