Six Flags Entertainment Corporation (FUN)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 26.71 | 3.63 | 3.50 | 0.59 | 3.84 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | 0.71 | — |
The inventory turnover ratio for Six Flags Entertainment Corporation has shown significant improvement over the years, reaching 26.71 in 2023, compared to lower levels in previous years. This indicates that the company is managing its inventory more efficiently and selling its products at a faster rate in 2023.
Unfortunately, data for receivables turnover and payables turnover ratios are not available for analysis. These ratios are crucial in assessing how well the company is collecting on its credit sales and managing its payments to suppliers, respectively.
The working capital turnover ratio was not calculable for the years 2020, 2021, and 2022. However, in 2019, the company had a working capital turnover of 0.71, indicating that for each dollar of working capital invested, the company generated $0.71 of revenue. This might suggest that the company's efficiency in utilizing its working capital to generate sales improved from earlier years.
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 | 13.66 | 100.66 | 104.22 | 619.12 | 95.11 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the data provided for Six Flags Entertainment Corporation activity ratios:
- The Days of Inventory on Hand (DOH) has fluctuated over the years, with a significant decrease from 619.12 days in 2020 to 13.66 days in 2023. This indicates an improvement in inventory management efficiency and faster inventory turnover.
- The information for Days of Sales Outstanding (DSO) and Number of Days of Payables is not available, which makes it challenging to assess the efficiency of the company in collecting accounts receivable and managing payables.
- Overall, the trend in the Days of Inventory on Hand ratio suggests that Six Flags Entertainment Corporation has been more effective in managing its inventory levels in recent years, which could positively impact its working capital management and overall financial performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | 1.15 | 0.78 | 0.10 | 0.80 |
| Total asset turnover | 0.79 | 0.81 | 0.58 | 0.07 | 0.57 |
The fixed asset turnover ratio for Six Flags Entertainment Corporation shows an improving trend over the years, increasing from 0.10 in 2020 to 1.15 in 2022 before missing data for 2023. This indicates that the company has been able to generate more revenue relative to its fixed assets, reflecting increased efficiency in utilizing its long-term assets to generate sales.
On the other hand, the total asset turnover ratio has also shown an upward trend, improving from 0.07 in 2020 to 0.81 in 2022, with 0.79 for 2023. This signifies that the company has been effective in generating sales revenue in relation to its total assets, reflecting an overall improvement in asset utilization efficiency over the years.
Both ratios indicate that Six Flags Entertainment Corporation has been progressively enhancing its ability to generate revenue from its long-term assets, which can be a positive sign of operational efficiency and effective management of its asset base. However, further analysis and comparisons with industry benchmarks may provide a more comprehensive assessment of the company's long-term activity performance.