Godaddy Inc (GDDY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 3.11 | 2.98 | 2.74 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
The activity ratios of Godaddy Inc provide insights into the company's efficiency in managing its assets and liabilities.
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company is managing its inventory.
- Over the years, Godaddy Inc's inventory turnover has shown an increasing trend, from 2.74 in 2020 to 3.11 in 2022.
- The improvement in this ratio indicates that the company is selling its inventory more quickly, which is a positive signal for its operational efficiency.
2. Receivables Turnover:
- The receivables turnover ratio evaluates the effectiveness of a company in collecting its accounts receivables.
- In the provided data, all figures are marked as "N/A," implying that specific data for this ratio is not available.
- Without this information, it is challenging to assess how efficiently Godaddy Inc is converting its credit sales into cash.
3. Payables Turnover:
- The payables turnover ratio assesses how efficiently a company is managing its accounts payable.
- The data indicates that information on payables turnover is not provided for the years mentioned.
- As a result, it is not possible to analyze how quickly Godaddy Inc is paying its suppliers, impacting insights into its payment practices.
4. Working Capital Turnover:
- The working capital turnover ratio gauges how effectively a company is utilizing its working capital to generate revenue.
- The data shows that information on working capital turnover is not available for the years specified.
- Without this data, evaluating how efficiently Godaddy Inc is using its working capital to drive sales or operations becomes challenging.
In conclusion, based on the available data, Godaddy Inc's inventory turnover ratio reflects an upward trend, signaling improved efficiency in managing inventory. However, the lack of information on receivables turnover, payables turnover, and working capital turnover limits a comprehensive assessment of the company's overall activity ratios.
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 | — | — | 117.21 | 122.52 | 133.42 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Godaddy Inc's activity ratios:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have shown a decreasing trend over the years, from 133.42 days in 2020 to 117.21 days in 2022.
- This indicates that the company has been able to manage its inventory more efficiently, holding less inventory relative to its sales.
2. Days of Sales Outstanding (DSO):
- The data shows that there are no available figures for Days of Sales Outstanding for all years provided.
- Without this information, it is difficult to assess the average number of days it takes for the company to collect its outstanding sales.
3. Number of Days of Payables:
- Similarly, there is no information available for the number of days of payables for any of the years provided.
- This ratio helps in understanding how long the company takes to pay its suppliers and manage its cash flow.
Overall, based on the available data, it seems that Godaddy Inc has been able to improve its inventory management efficiency over time, but further information on sales outstanding and payables turnover would provide a more comprehensive analysis of the company's working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 18.14 | 11.59 | 12.89 |
| Total asset turnover | 0.56 | 0.56 | 0.59 | 0.51 | 0.52 |
The Fixed Asset Turnover ratio measures how efficiently a company generates revenue from its fixed assets. In the case of Godaddy Inc, the ratio has shown a decreasing trend over the years, from 12.89 in 2020 to 11.59 in 2021, and then a significant increase to 18.14 in 2022. However, there is missing data for 2023 and 2024, which limits a comprehensive trend analysis.
A high Fixed Asset Turnover ratio indicates that the company is effectively utilizing its fixed assets to generate sales. The variability in Godaddy's ratio suggests fluctuations in how efficiently the company is using its fixed assets to generate revenue.
On the other hand, the Total Asset Turnover ratio measures how well a company uses all its assets to generate revenue. Godaddy's Total Asset Turnover ratio has been relatively stable over the years, ranging from 0.51 to 0.59, with a slight decline to 0.56 in 2023 and 2024.
Overall, the company's Total Asset Turnover ratio indicates that Godaddy is generating revenue efficiently relative to its total assets. However, the variability in the Fixed Asset Turnover ratio suggests fluctuations in how effectively the company is utilizing its fixed assets to generate sales, warranting further investigation into the management of fixed assets to optimize efficiency and profitability.