Forward Air Corporation (FWRD)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | 49.54 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 27.97 | 12.47 | 14.63 | 14.07 | 16.39 |
Based on the provided data for Forward Air Corporation, we can analyze the activity ratios as follows:
1. Inventory Turnover: The inventory turnover ratio for Forward Air Corporation was 49.54 in 2020. However, data for subsequent years (2021 to 2024) is not available. A high inventory turnover ratio typically indicates that the company is efficiently managing its inventory by selling products quickly.
2. Receivables Turnover: The receivables turnover ratio data is not provided for any of the years (2020 to 2024). This ratio helps in assessing how efficiently a company is collecting outstanding receivables from its customers.
3. Payables Turnover: The payables turnover ratio data is not available for any of the years (2020 to 2024). This ratio helps in evaluating how quickly a company is paying off its suppliers.
4. Working Capital Turnover: The working capital turnover ratio provides insight into how effectively a company is utilizing its working capital to generate sales revenue. The figures for this ratio for Forward Air Corporation show a decreasing trend from 2020 to 2023 (16.39 to 12.47) but then a significant increase to 27.97 in 2024. A higher working capital turnover ratio generally indicates better efficiency in utilizing working capital to generate sales.
In summary, while the inventory turnover ratio for Forward Air Corporation in 2020 was relatively high, the absence of data for subsequent years hinders a thorough analysis of the company's activity ratios. Limited information on receivables turnover, payables turnover, and varying trends in the working capital turnover ratio suggest it is crucial to have data for multiple years to assess the company's overall efficiency in managing its assets and liabilities.
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 | — | — | — | — | 7.37 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, the Days of Inventory on Hand (DOH) for Forward Air Corporation as of December 31, 2020, was 7.37 days. However, there is no data available for the subsequent years up to December 31, 2024.
Similarly, there is no data available for the Days of Sales Outstanding (DSO) and Number of Days of Payables for Forward Air Corporation for the years from December 31, 2020, to December 31, 2024.
Due to the missing information for the years following 2020, it is challenging to provide a comprehensive analysis of the activity ratios for Forward Air Corporation. Monitoring and analyzing these ratios in the future would be crucial for evaluating the company's efficiency in managing its inventory, receivables, and payables.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.92 | 4.53 | 6.69 |
| Total asset turnover | 0.88 | 0.46 | 1.63 | 1.49 | 1.21 |
The fixed asset turnover ratio for Forward Air Corporation has shown variability over the years, starting at 6.69 in 2020, decreasing to 4.53 in 2021, and then increasing significantly to 7.92 in 2022. However, for 2023 and 2024, the values are not available. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.
In contrast, the total asset turnover ratio has also fluctuated during the period. It increased from 1.21 in 2020 to 1.49 in 2021 and further to 1.63 in 2022, suggesting an improvement in overall asset utilization. However, there was a substantial drop to 0.46 in 2023 before a partial recovery to 0.88 in 2024. This ratio reflects the company's ability to generate sales in relation to its total assets.
Overall, the trend in the fixed asset turnover ratio suggests improving efficiency in utilizing fixed assets over the years, although there is a lack of data for 2023 and 2024. The total asset turnover ratio indicates a generally positive trend in asset utilization, notwithstanding the significant decline in 2023 before a partial rebound in 2024.