Greenbrier Companies Inc (GBX)

Short-term

Turnover ratios

Based on the provided data, the activity ratios of Greenbrier Companies Inc, specifically inventory turnover, receivables turnover, and working capital turnover, have shown varying trends over the past five years.

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. A higher ratio indicates better inventory management.
- Greenbrier's inventory turnover has fluctuated over the years, with a peak of 4.61 in 2020, a decline to 2.64 in 2021, and a subsequent increase to 3.87 in 2024.
- The improvement in inventory turnover from 2021 to 2024 suggests that Greenbrier has been able to better manage its inventory levels and turn over its stock more efficiently.

2. Receivables Turnover:
- The receivables turnover ratio reflects a company's ability to collect cash from its credit customers. A higher ratio signifies more efficient collection of receivables.
- Greenbrier's receivables turnover has shown significant fluctuations, reaching its highest level of 306.53 in 2020 and declining to 78.60 in 2024.
- The sharp decrease in receivables turnover from 2020 to 2024 may indicate changes in Greenbrier's credit policies or the nature of its customer base.

3. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher ratio indicates better utilization of working capital.
- Greenbrier's working capital turnover has shown an increasing trend over the years, from 5.10 in 2020 to 23.51 in 2024.
- The consistent improvement in working capital turnover suggests that Greenbrier has been able to generate more revenue relative to its working capital base, indicating improved operational efficiency.

In conclusion, Greenbrier Companies Inc has demonstrated improvements in inventory turnover and working capital turnover over the years, indicating enhanced efficiency in managing inventory and utilizing working capital. However, the fluctuating nature of the receivables turnover ratio may warrant further investigation into the company's credit policies and customer relationships.

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Average number of days

Based on the provided data for Greenbrier Companies Inc's activity ratios for the past five years, we can observe the following trends:

1. Days of inventory on hand (DOH):
- The DOH has fluctuated over the period, ranging from a low of 79.24 days in 2020 to a high of 138.08 days in 2021, before stabilizing at 94.23 days in 2024.
- A higher DOH indicates that the company holds inventory for a longer period before selling, which may tie up capital and increase storage costs. The decrease in DOH from 2021 to 2024 suggests a more efficient management of inventory.

2. Days of sales outstanding (DSO):
- The DSO has shown variability, with the lowest value of 1.19 days in 2020 and the highest value of 23.42 days in 2021. In 2024, it stands at 4.64 days.
- A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is a positive sign as it improves cash flow. The increase in DSO from 2020 to 2021 and the subsequent decrease by 2024 may reflect changes in the company's credit policies or customer payment behaviors.

3. Number of days of payables:
- Unfortunately, the data for the number of days of payables is not provided, making it challenging to assess the company's payment practices in relation to its suppliers.
- The absence of this information hinders a comprehensive analysis of the company's working capital management and cash flow efficiency.

In summary, Greenbrier Companies Inc has demonstrated varying trends in its activity ratios over the years, with improvements in inventory management efficiency and fluctuations in accounts receivable collection periods. The lack of data on payables days limits a complete assessment of the company's overall working capital management.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates sales using its fixed assets. Greenbrier Companies Inc's fixed asset turnover has fluctuated over the past five years, with the ratio being highest in 2023 at 6.37 and lowest in 2021 at 2.61. The decreasing trend from 2023 to 2021 indicates a potential decline in the company's ability to generate sales from its fixed assets efficiently.

On the other hand, the total asset turnover ratio measures how efficiently a company utilizes all its assets to generate sales. Greenbrier Companies Inc's total asset turnover has also varied over the five-year period, with the ratio being highest in 2023 at 0.99 and lowest in 2021 at 0.52. The increase from 2021 to 2023 suggests an improvement in the company's ability to generate sales relative to its total assets.

Overall, Greenbrier Companies Inc's long-term activity ratios show some inconsistency in the efficiency of generating sales from both fixed and total assets. It will be crucial for the company to closely monitor and manage its asset utilization strategies to enhance efficiency and profitability in the long run.