Godaddy Inc (GDDY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 5.60 | 5.57 | 5.42 | 5.04 |
| Receivables turnover | 53.67 | 65.91 | 58.08 | 77.23 | 95.50 |
| Payables turnover | 18.14 | 20.38 | 30.10 | 44.99 | 28.54 |
| Working capital turnover | — | — | — | — | — |
Inventory turnover is not provided in the table, which is likely due to the nature of Godaddy Inc's operations where inventory turnover may not be a significant aspect of the business.
Receivables turnover measures how efficiently the company is collecting its accounts receivable. The receivables turnover has been decreasing over the years, indicating that it took longer for Godaddy Inc to collect its outstanding receivables in recent years.
Payables turnover measures how quickly the company pays its suppliers. The payables turnover has also been decreasing over the years, showing that Godaddy Inc took longer to pay its suppliers in recent years compared to previous years.
Working capital turnover, which is not provided in the table, is an efficiency ratio that measures how effectively a company is using its working capital to generate revenue. The absence of this ratio in the table limits our ability to assess Godaddy Inc's efficiency in utilizing its working capital.
Overall, a decline in both receivables turnover and payables turnover may indicate potential liquidity challenges or changes in the company's operating cycle. Further analysis is recommended to understand the reasons behind these changes and their impact on Godaddy Inc's overall financial performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 65.21 | 65.56 | 67.37 | 72.48 |
| Days of sales outstanding (DSO) | days | 6.80 | 5.54 | 6.28 | 4.73 | 3.82 |
| Number of days of payables | days | 20.12 | 17.91 | 12.13 | 8.11 | 12.79 |
Days of inventory on hand (DOH) for Godaddy Inc is not provided in the table, indicating a lack of data to calculate this specific ratio.
Days of sales outstanding (DSO) for the company have shown an increasing trend over the past five years, from 3.69 days in 2019 to 6.57 days in 2023. This suggests that it takes Godaddy Inc longer to collect its accounts receivable, possibly indicating a delay in receiving payments from customers.
On the other hand, the number of days of payables has fluctuated over the same period, with a peak of 34.35 days in 2023 and a low of 16.07 days in 2020. This ratio measures how long it takes the company to pay its suppliers. The longer the payment period, the more favorable it is for the company as it can hold onto cash longer.
Overall, Godaddy Inc's activity ratios indicate a need for a closer look at its working capital management to optimize cash flow and improve efficiency in its operations.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 22.19 | 17.56 | 16.79 | 12.55 | 11.15 |
| Total asset turnover | 0.54 | 0.57 | 0.50 | 0.50 | 0.46 |
Godaddy Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency of the company in generating revenue from its fixed and total assets, respectively.
The fixed asset turnover ratio indicates that Godaddy has been improving its efficiency in generating sales from its fixed assets over the years. The ratio has shown a consistent increase from 2019 to 2023, reaching a high of 22.96 in 2023. This suggests that the company is utilizing its fixed assets more effectively to generate revenue.
On the other hand, the total asset turnover ratio, which reflects how efficiently the company is using all its assets to generate revenue, has been relatively stable over the years. The ratio fluctuated between 0.47 and 0.59 during the period from 2019 to 2023, with a slight decrease to 0.56 in 2023. This indicates that Godaddy's overall efficiency in generating sales from all its assets has remained relatively consistent.
In summary, while Godaddy has significantly improved its efficiency in generating revenue from its fixed assets, its overall efficiency in utilizing all assets to generate sales has shown stability over the years. This suggests a strong operational performance and effective asset management strategies within the company.