Greenbrier Companies Inc (GBX)

Short-term

Turnover ratios

The activity ratios for Greenbrier Companies Inc indicate the following trends:

1. Inventory Turnover: The inventory turnover ratio has shown some fluctuations over the periods, ranging from 2.62 to 4.61. The ratio demonstrates how efficiently the company is managing its inventory levels. A higher turnover ratio generally indicates a more efficient use of inventory.

2. Receivables Turnover: The receivables turnover ratio has varied significantly, from 15.59 to 379.65. This ratio reflects how quickly the company collects its accounts receivable. A higher turnover ratio suggests a shorter time frame for collecting outstanding payments.

3. Payables Turnover: Data for the payables turnover ratio is not available, which indicates a lack of information on how quickly the company is paying its suppliers.

4. Working Capital Turnover: The working capital turnover ratio has also shown fluctuations, ranging from 3.10 to 20.67. This ratio indicates how well the company is utilizing its working capital to generate sales. A higher turnover ratio implies that the company is effectively using its working capital to support operations.

Overall, the analysis of these activity ratios provides insights into Greenbrier Companies Inc's operational efficiency in managing its inventory, accounts receivable, payables, and working capital. It highlights areas where the company may be performing well or areas that may require further attention for improvement.

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Average number of days

The Days of Inventory on Hand (DOH) for Greenbrier Companies Inc have shown some fluctuations over the past few quarters. The trend indicates that the company has been managing its inventory more efficiently in recent periods, as evidenced by a decreasing trend from 139.07 days in November 2021 to 93.49 days in February 2024. This suggests that the company is holding less inventory relative to its sales, which can be a positive sign of effective inventory management.

In contrast, the Days of Sales Outstanding (DSO) have shown more volatility, with fluctuations in the collection period from customers. The DSO decreased significantly from 20.45 days in August 2021 to 0.96 days in November 2023, indicating a faster collection of receivables. However, there was a spike in DSO to 17.99 days in February 2024, which may suggest some challenges in collecting payments from customers efficiently during that period.

Unfortunately, there is no available data for the Number of Days of Payables, making it difficult to assess the company's payment practices and how they impact its overall working capital management.

Overall, Greenbrier Companies Inc should continue to monitor and potentially improve its collection processes to maintain a healthy cash conversion cycle and working capital efficiency.

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Long-term

The fixed asset turnover ratio for Greenbrier Companies Inc has shown a general upward trend over the period from Nov 2019 to Feb 2024, indicating an improvement in the company's ability to generate sales from its investment in fixed assets. This ratio reflects the efficiency of the company in utilizing its fixed assets to generate revenue, with a higher ratio indicating better asset utilization.

On the other hand, the total asset turnover ratio has fluctuated over the same period, but it generally shows a declining trend. This ratio measures how efficiently the company is using all its assets to generate sales. A decrease in this ratio may suggest that the company's total asset base is growing faster than its sales, potentially signaling inefficiency in asset utilization or a slowdown in revenue generation.

Overall, the fixed asset turnover ratio suggests that Greenbrier Companies Inc has been improving its efficiency in generating sales from its fixed assets over the years, while the total asset turnover ratio indicates some challenges in optimizing the utilization of all its assets to drive revenue growth.