Graham Holdings Co (GHC)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 11.24 | 10.44 | 11.72 | 14.95 | 15.85 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 5.33 | 7.13 | 7.35 | 4.68 | 3.50 |
Inventory Turnover:
- December 31, 2020: The company's inventory turnover was 15.85, indicating that the company sold and replaced its inventory approximately 15.85 times during the year.
- December 31, 2021: The inventory turnover decreased slightly to 14.95, suggesting a small decrease in the efficiency of inventory management compared to the previous year.
- December 31, 2022: The inventory turnover dropped further to 11.72, indicating a slower rate of inventory turnover compared to the previous years.
- December 31, 2023: The inventory turnover decreased to 10.44, indicating a continued decline in inventory turnover efficiency.
- December 31, 2024: The inventory turnover improved slightly to 11.24, which is still lower than the levels seen in the earlier years.
Receivables Turnover:
- The receivables turnover data is not provided for any of the years, indicating that the company's receivables turnover ratio is not available for analysis.
Payables Turnover:
- Similar to receivables turnover, payables turnover data is not provided for any of the years, indicating that the company's payables turnover ratio is not available for analysis.
Working Capital Turnover:
- December 31, 2020: The company's working capital turnover was 3.50, indicating that the company generated $3.50 in revenue for every dollar of working capital invested.
- December 31, 2021: The working capital turnover improved to 4.68, suggesting an increase in efficiency in utilizing working capital to generate revenue.
- December 31, 2022: The working capital turnover further increased to 7.35, indicating that the company effectively utilized its working capital to generate revenue at a higher rate.
- December 31, 2023: The working capital turnover slightly decreased to 7.13, but still remained at a relatively high level compared to earlier years.
- December 31, 2024: The working capital turnover decreased to 5.33, indicating a slight drop in the efficiency of utilizing working capital to generate revenue compared to the previous year.
Overall, the analysis of Graham Holdings Co's activity ratios reveals fluctuations in inventory turnover and working capital turnover over the years, with varying levels of efficiency in managing inventory and utilizing working capital to generate revenue. Additionally, the lack of data for receivables turnover and payables turnover limits the comprehensive assessment of the company's performance in managing receivables and payables.
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 | 32.48 | 34.96 | 31.15 | 24.42 | 23.03 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The analysis of Graham Holdings Co's activity ratios reveals the following trends:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand increased from 23.03 days as of December 31, 2020, to 24.42 days as of December 31, 2021.
- Subsequently, there was a further increase in the DOH to 31.15 days as of December 31, 2022.
- The trend continued with a rise to 34.96 days as of December 31, 2023, but then decreased slightly to 32.48 days as of December 31, 2024.
- Overall, there was an upward trend in the days of inventory on hand, indicating that the company may be carrying more inventory relative to its sales.
2. Days of Sales Outstanding (DSO):
- Data regarding days of sales outstanding is not available for the years provided (2020-2024). This could indicate a lack of accounts receivable that are outstanding for the company, or these figures may not have been reported.
3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not provided for the years 2020-2024. The absence of this data makes it challenging to assess the company's payment practices to its suppliers and vendors.
In summary, the analysis of Graham Holdings Co's activity ratios highlights an increasing trend in the days of inventory on hand, while data on days of sales outstanding and number of days of payables is not available for the specified years. An increase in the DOH indicates a potential buildup of inventory, which may have implications for the company's working capital management and operational efficiency.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 7.80 | 6.81 | 7.64 |
| Total asset turnover | 0.62 | 0.61 | 0.60 | 0.43 | 0.45 |
Graham Holdings Co's fixed asset turnover ratio, which measures the efficiency of utilizing fixed assets to generate revenue, has shown a fluctuating trend over the years. The ratio decreased from 7.64 in 2020 to 6.81 in 2021, before increasing to 7.80 in 2022. However, data for 2023 and 2024 is not available for analysis.
In terms of total asset turnover, which indicates how effectively the company utilizes its total assets to generate sales, the ratio has been relatively low but on an increasing trend. It was 0.45 in 2020, decreased to 0.43 in 2021, and then experienced significant improvement to 0.60 in 2022. The ratio continued to rise in 2023 and 2024, reaching 0.61 and 0.62, respectively.
Overall, the efficiency of utilizing both fixed assets and total assets to generate revenue has shown some variability, with improvements in total asset turnover indicating a positive trend in asset utilization over the years. Additional data for 2023 and 2024 for the fixed asset turnover ratio would provide further insights into the company's long-term activity performance.