Grocery Outlet Holding Corp (GO)

Short-term

Turnover ratios

Based on the provided data, here is a comprehensive analysis of Grocery Outlet Holding Corp's activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period. Grocery Outlet Holding Corp's inventory turnover has fluctuated over the years, decreasing from 8.82 in 2020 to 7.74 in 2024. A higher turnover ratio is generally preferred as it indicates efficient management of inventory. The decreasing trend may suggest slower inventory movement in recent years.

2. Receivables Turnover:
- There is no data available for the receivables turnover ratio for Grocery Outlet Holding Corp for the years under review. This ratio typically indicates how efficiently a company collects its accounts receivable. The absence of data might imply that the company does not have significant receivable balances or the information is not disclosed.

3. Payables Turnover:
- Similar to the receivables turnover, data for the payables turnover ratio is not provided for Grocery Outlet Holding Corp. This ratio measures how efficiently a company pays its suppliers. A higher turnover indicates quicker payment to suppliers, while a lower ratio might suggest delayed payments or favorable credit terms.

4. Working Capital Turnover:
- The working capital turnover ratio reflects how effectively a company utilizes its working capital to generate sales. Grocery Outlet Holding Corp's working capital turnover has varied over the years, with a notable increase from 15.03 in 2021 to 29.94 in 2023 before declining slightly to 28.34 in 2024. A higher turnover ratio indicates efficient use of working capital to drive sales, which can be positive for the company's financial performance.

Overall, the analysis of these activity ratios provides insights into Grocery Outlet Holding Corp's operational efficiency in managing inventory, working capital, and potentially its accounts receivable and payables. Additional information and comparison to industry benchmarks would be beneficial to gain a more comprehensive understanding of the company's financial health and operational performance.

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Average number of days

Based on the provided data, we can analyze Grocery Outlet Holding Corp's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The DOH measures how many days, on average, a company holds its inventory before selling it. It indicates the efficiency of inventory management.
- For Grocery Outlet Holding Corp, the DOH increased from 41.40 days in December 2020 to 47.18 days in December 2024.
- The increasing trend in DOH suggests that the company is holding onto its inventory for a longer period, which could tie up capital and lead to higher carrying costs.

2. Days of Sales Outstanding (DSO):
- The DSO reflects the average number of days it takes for a company to collect payment after making a sale. It measures the efficiency of accounts receivable management.
- The data provided indicates that DSO was not available for any of the years specified, which suggests that information regarding the collection period after sales is not disclosed or may not be applicable to this company.

3. Number of Days of Payables:
- This ratio represents the average number of days it takes for a company to pay its suppliers after receiving goods or services. It relates to the company's ability to manage its trade credit effectively.
- Similar to DSO, data for the Number of Days of Payables was not available for the years specified.
- Without information on the payment period to suppliers, it is challenging to assess how effectively the company is utilizing trade credit terms.

In conclusion, based on the provided data, Grocery Outlet Holding Corp's inventory management, and accounts payable operational efficiency can be assessed to some extent, but information on accounts receivable efficiency is not available for a comprehensive analysis of its activity ratios.

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Long-term

The Fixed Asset Turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. For Grocery Outlet Holding Corp, the Fixed Asset Turnover has shown a trend of decrease from 7.23 in 2020 to 6.17 in 2021, then a slight increase to 6.38 in 2022. However, there is missing data for 2023 and 2024. A high Fixed Asset Turnover ratio indicates that the company is generating more revenue from its fixed assets, which is generally favorable.

Total Asset Turnover ratio, on the other hand, measures how well a company uses its assets to generate revenue. Grocery Outlet Holding Corp's Total Asset Turnover ratio has shown a decreasing trend from 1.26 in 2020 to 1.15 in 2021, followed by an increase to 1.29 in 2022, and further to 1.34 in 2023, and 1.38 in 2024. A higher Total Asset Turnover ratio indicates that the company is efficient in using its total assets to generate sales.

Overall, based on the trend seen in the Fixed Asset Turnover and Total Asset Turnover ratios, Grocery Outlet Holding Corp has shown a mixed performance in efficiently utilizing its fixed and total assets to generate sales over the years. Further analysis may be required to understand the factors contributing to these changes and their implications for the company's long-term business performance.