Forward Air Corporation (FWRD)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover — — — — — — — — — — — — 47.13 34.79 66.34 — 509.16 — — —
Receivables turnover 9.90 8.93 10.28 9.55 8.89 7.86 7.54 7.44 7.66 7.54 6.98 7.10 8.11 8.09 9.33 8.67 8.09 7.95 8.21 8.61
Payables turnover 10.65 12.22 15.04 12.87 11.02 10.60 12.40 9.37 10.94 24.75 23.32 23.84 25.80 18.07 28.45 36.71 42.72 31.21 32.87 32.29
Working capital turnover 14.29 36.19 38.86 20.90 14.57 14.59 12.52 12.83 14.02 11.83 11.44 16.78 17.09 15.90 12.15 12.69 12.26 16.49 22.50 15.19

The inventory turnover ratio for Forward Air Corporation has not been provided for the most recent quarters, but historically, the company exhibited a high turnover rate, particularly in December 2020 with a ratio of 509.16. This indicates that the company was efficient in managing its inventory during that period.

The receivables turnover ratio has shown variability over the quarters, ranging from 6.98 to 10.28. A higher turnover ratio suggests that the company was able to collect its receivables quickly. Overall, Forward Air Corporation maintained a relatively healthy turnover of its receivables during the periods analyzed.

In terms of payables turnover, the company also displayed fluctuating ratios, with values ranging from 9.37 to 42.72. A higher payables turnover ratio indicates that the company takes less time to pay its suppliers. The high ratios observed in some quarters suggest that the company effectively managed its accounts payable during those periods.

The working capital turnover ratio exhibited fluctuations as well, ranging from 11.44 to 38.86. A higher working capital turnover ratio indicates that the company efficiently utilized its working capital to generate sales. Forward Air Corporation showed varying levels of efficiency in this aspect over the quarters analyzed.

Overall, based on the activity ratios analyzed, Forward Air Corporation demonstrated efficiency in managing its inventory, receivables, payables, and working capital during the periods evaluated, with some quarters showing stronger performance than others.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days — — — — — — — — — — — — 7.74 10.49 5.50 — 0.72 — — —
Days of sales outstanding (DSO) days 36.86 40.90 35.50 38.21 41.04 46.46 48.39 49.04 47.65 48.39 52.26 51.44 44.99 45.10 39.10 42.10 45.11 45.91 44.47 42.38
Number of days of payables days 34.28 29.87 24.26 28.37 33.13 34.44 29.43 38.96 33.36 14.75 15.65 15.31 14.15 20.20 12.83 9.94 8.54 11.70 11.11 11.30

Days of inventory on hand (DOH) measures how many days, on average, a company holds inventory before selling it. In the recent periods, the company has not provided data for this ratio, indicating a lack of transparency or a change in reporting practices.

Days of sales outstanding (DSO) represents the average number of days it takes for a company to collect its accounts receivable. The decreasing trend in DSO over the periods analyzed suggests an improvement in the company's collection efficiency, indicating a shorter time to convert sales into cash.

Number of days of payables measures the average number of days it takes for a company to pay its suppliers. The fluctuating trend in this ratio indicates variations in the company's payment terms and management of its accounts payable.

Overall, improvements in DSO and fluctuations in the number of days of payables can indicate effectiveness in managing working capital and operational efficiency, while the lack of data on DOH prevents a comprehensive analysis of the company's inventory management.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 7.14 6.63 6.94 7.61 7.89 8.43 8.10 7.86 7.56 7.89 7.81 7.08 6.69 6.51 6.27 5.92 6.30 5.67 6.08 6.27
Total asset turnover 0.53 1.44 1.53 1.57 1.63 1.64 1.55 1.51 1.48 1.45 1.35 1.30 1.21 1.18 1.14 1.16 1.23 1.28 1.36 1.46

The fixed asset turnover ratio for Forward Air Corporation has shown a general decreasing trend over the periods analyzed, indicating that the company is generating slightly less revenue from its fixed assets over time. However, the ratio remains relatively stable within a range of 6.27 to 8.43, suggesting consistent operational efficiency in utilizing fixed assets to generate sales.

On the other hand, the total asset turnover ratio shows more variability but tends to be higher and fluctuate to a greater extent compared to the fixed asset turnover. The total asset turnover ratio spiked significantly in September 2023, signaling improved efficiency in generating sales from all assets during that period.

Overall, the company's ability to generate revenue from both fixed and total assets is relatively strong, as evidenced by the consistently high turnover ratios. This indicates efficient asset utilization to support sales growth and operational performance. However, fluctuations in the total asset turnover ratio may suggest changes in the company's asset base composition or business operations.