Greif Bros Corporation (GEF)
Activity ratios
Short-term
Turnover ratios
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 12.82 | 14.04 | 12.60 | 12.83 | 12.40 | 14.37 | 12.34 | 12.22 | 11.38 | 10.29 | 7.99 | 9.05 | 9.53 | 10.81 | 9.08 | 9.68 | 9.05 | 8.76 | 7.57 | 6.85 |
| Receivables turnover | 8.06 | 8.00 | 8.01 | 7.93 | 9.03 | 8.44 | 7.38 | 7.13 | 7.32 | 6.25 | 6.18 | 6.32 | 6.72 | 7.12 | 7.36 | 7.44 | 7.48 | 6.90 | 5.98 | 5.81 |
| Payables turnover | 10.10 | 9.55 | 9.66 | 10.22 | 11.79 | 10.33 | 9.19 | 9.36 | 8.97 | 7.29 | 5.55 | 5.81 | 6.83 | 7.04 | 7.28 | 7.84 | 8.61 | 7.21 | 6.82 | 6.10 |
| Working capital turnover | 10.16 | 12.27 | 11.10 | 10.59 | 10.30 | 14.00 | 12.06 | 12.69 | 14.11 | 15.88 | 15.86 | 17.40 | 12.83 | 14.97 | 11.75 | 11.69 | 9.93 | 10.83 | 8.59 | 7.53 |
The activity ratios of Greif Inc for the past eight quarters provide valuable insights into the company's efficiency in managing its operating assets:
1. Inventory Turnover:
- Greif's inventory turnover ratio has been relatively stable over the quarters, ranging from 10.78 to 12.56.
- This indicates that the company is efficiently managing its inventory levels, with the ability to sell and replace its inventory multiple times during the year.
2. Receivables Turnover:
- The receivables turnover ratio has varied between 7.16 and 8.98 over the quarters.
- Greif has shown consistency in collecting its receivables, with a slightly decreasing trend in recent quarters.
3. Payables Turnover:
- The payables turnover ratio has fluctuated between 8.04 and 10.36.
- This implies that Greif has been managing its trade payables efficiently, with flexibility in its payment terms with suppliers.
4. Working Capital Turnover:
- Greif's working capital turnover has shown a consistent pattern, ranging from 10.17 to 14.06.
- The company is effectively utilizing its working capital to generate revenue, indicating operational efficiency.
Overall, Greif Inc appears to have a solid grasp on managing its operating assets efficiently based on the analysis of its activity ratios over the quarters. The stable inventory turnover, consistent receivables collection, and effective working capital utilization suggest good operational performance. However, monitoring the payables turnover for any significant deviations would be important for assessing the company's liquidity and supplier relationships.
Average number of days
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 28.46 | 25.99 | 28.97 | 28.45 | 29.43 | 25.40 | 29.58 | 29.87 | 32.08 | 35.47 | 45.67 | 40.32 | 38.32 | 33.76 | 40.18 | 37.71 | 40.35 | 41.66 | 48.24 | 53.27 |
| Days of sales outstanding (DSO) | days | 45.31 | 45.64 | 45.59 | 46.02 | 40.44 | 43.25 | 49.44 | 51.17 | 49.84 | 58.40 | 59.08 | 57.76 | 54.34 | 51.26 | 49.62 | 49.07 | 48.79 | 52.87 | 61.04 | 62.84 |
| Number of days of payables | days | 36.14 | 38.21 | 37.80 | 35.72 | 30.95 | 35.35 | 39.70 | 38.99 | 40.71 | 50.06 | 65.73 | 62.84 | 53.42 | 51.83 | 50.11 | 46.54 | 42.41 | 50.62 | 53.48 | 59.88 |
Activity ratios provide insight into how efficiently a company manages its assets and liabilities.
1. Days of Inventory on Hand (DOH):
- DOH decreased from Q3 2022 to Q4 2022 but has been relatively stable since then.
- A lower DOH indicates that Greif is managing its inventory more efficiently, potentially reducing holding costs.
- The slight increase in Q1 2024 compared to Q4 2023 may suggest a buildup in inventory, which could be a concern if it leads to excess or obsolete stock.
2. Days of Sales Outstanding (DSO):
- DSO measures how quickly Greif collects its accounts receivable.
- DSO has shown some fluctuation over the quarters but has generally been within a manageable range.
- The increase in Q2 2023 compared to Q1 2023 may imply a delay in collecting payments, which could impact cash flow if not managed effectively.
3. Number of Days of Payables:
- This ratio represents how long Greif takes to pay its suppliers.
- The trend shows a fluctuation in the number of days of payables over the quarters.
- The decrease from Q1 2023 to Q2 2023 suggests Greif may be paying its suppliers more quickly, potentially impacting working capital.
Overall, Greif's activity ratios indicate that it is managing its inventory, receivables, and payables efficiently. However, monitoring inventory levels, collection efforts, and payment terms is crucial to maintain liquidity and optimize operational performance.
Long-term
| Jan 31, 2024 | Oct 31, 2023 | Jul 31, 2023 | Apr 30, 2023 | Jan 31, 2023 | Oct 31, 2022 | Jul 31, 2022 | Apr 30, 2022 | Jan 31, 2022 | Oct 31, 2021 | Jul 31, 2021 | Apr 30, 2021 | Jan 31, 2021 | Oct 31, 2020 | Jul 31, 2020 | Apr 30, 2020 | Jan 31, 2020 | Oct 31, 2019 | Jul 31, 2019 | Apr 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 3.28 | 3.38 | 3.59 | 3.80 | 4.03 | 4.35 | 4.49 | 4.39 | 4.10 | 3.65 | 3.45 | 3.17 | 3.01 | 2.97 | 2.89 | 2.98 | 2.88 | 2.71 | 2.58 | 2.43 |
| Total asset turnover | 0.86 | 0.88 | 0.93 | 0.98 | 1.07 | 1.16 | 1.14 | 1.12 | 1.04 | 0.96 | 0.90 | 0.85 | 0.82 | 0.82 | 0.82 | 0.86 | 0.84 | 0.85 | 0.78 | 0.74 |
Fixed asset turnover measures how efficiently a company generates sales using its fixed assets. Greif Inc's fixed asset turnover has been decreasing gradually over the past eight quarters, from a high of 4.51 in Q3 2022 to 3.28 in Q1 2024. This downward trend indicates that Greif Inc is becoming less efficient in utilizing its fixed assets to generate revenue.
Total asset turnover measures a company's ability to generate sales using all its assets. Greif Inc's total asset turnover has also been on a declining trend, from a peak of 1.16 in Q4 2022 to 0.86 in Q1 2024. This indicates that the company is becoming less effective in generating revenues relative to the total assets it holds.
Overall, both the fixed asset turnover and total asset turnover ratios suggest that Greif Inc's efficiency in utilizing its assets to generate revenue has been on a downward trajectory over the past quarters. It is important for the company to analyze the reasons behind this trend and take corrective actions to improve its asset utilization efficiency.