Godaddy Inc (GDDY)

Short-term

Turnover ratios

The activity ratios of Godaddy Inc provide insights into the efficiency of its operations.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. From March 31, 2020, to December 31, 2024, Godaddy Inc's inventory turnover ratio steadily increased from 2.58 to 3.48. This indicates that the company's inventory management improved over time, as it managed to sell its inventory at a faster rate.

2. Receivables Turnover: The receivables turnover ratio evaluates how efficiently a company is collecting its accounts receivable. However, the data provided shows that the receivables turnover ratio was not available for the periods mentioned, which makes it difficult to assess the efficiency of Godaddy Inc's collection of receivables.

3. Payables Turnover: The payables turnover ratio measures how efficiently a company is paying its suppliers. Similar to receivables turnover, the data suggests that the payable turnover ratio was not available for the periods specified, making it challenging to evaluate how effectively Godaddy Inc was managing its payables.

4. Working Capital Turnover: The working capital turnover ratio assesses how effectively a company utilizes its working capital to generate sales. Unfortunately, the data for this ratio was not provided for the periods mentioned, limiting our ability to analyze how efficiently Godaddy Inc was using its working capital.

In conclusion, based on the available information, Godaddy Inc showed improvements in its inventory turnover over the years, indicating better inventory management practices. However, the lack of data for receivables turnover, payables turnover, and working capital turnover ratios hinders a comprehensive assessment of the company's overall activity efficiency.

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Average number of 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 decreased from 141.21 days as of March 31, 2020, to 104.93 days as of September 30, 2024. This signifies an improvement in inventory management efficiency over the period.
- The company has shown a consistent trend of reducing its inventory holding period, indicating effective inventory control and potentially more efficient working capital management.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on Days of Sales Outstanding (DSO) for Godaddy Inc. DSO typically measures how long it takes for a company to collect payment after a sale, and it is useful in evaluating accounts receivable management efficiency.

3. Number of Days of Payables:
- The data does not provide information on the Number of Days of Payables for Godaddy Inc. This ratio helps assess how long a company takes to pay its suppliers, reflecting its ability to manage its payables efficiently.

In summary, based on the available data, Godaddy Inc has demonstrated improvement in its inventory management efficiency over the years, as indicated by the decreasing trend in Days of Inventory on Hand. However, further information on Days of Sales Outstanding and Number of Days of Payables would provide a more comprehensive analysis of the company's overall activity ratios and working capital management.

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Long-term

The fixed asset turnover ratio of Godaddy Inc has shown fluctuations over the years, ranging from as low as 9.60 to as high as 20.12. This ratio measures the company's ability to generate sales from its fixed assets, with a higher ratio indicating more efficient utilization of fixed assets. The trend indicates an overall improvement in the efficiency of fixed asset utilization, especially notable in recent periods.

On the other hand, the total asset turnover ratio, reflecting how effectively the company is using all its assets to generate revenue, has shown more stability compared to the fixed asset turnover ratio. It ranged from 0.47 to 0.65 over the years, reflecting a consistent performance in generating sales in relation to total assets.

Overall, the trends in both ratios suggest that Godaddy Inc has been able to effectively utilize its assets to generate revenue, with a notable improvement in the efficiency of its fixed asset utilization in recent periods.