Grocery Outlet Holding Corp (GO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 10.25 | 11.27 | 10.63 | 10.44 | 10.32 | 10.05 | 10.00 | 10.29 | 10.79 | 12.16 | 12.00 | 12.29 | 12.19 | 11.26 | 11.96 |
| Receivables turnover | 206.76 | 168.20 | 263.57 | — | 234.54 | — | — | — | 295.46 | — | — | — | — | — | — |
| Payables turnover | 17.14 | 18.91 | 23.14 | — | 25.07 | — | — | — | 24.35 | — | — | — | — | — | — |
| Working capital turnover | 29.83 | 29.77 | 31.92 | 29.27 | 19.05 | 18.85 | 19.37 | 14.37 | 14.97 | 15.31 | 16.40 | 18.56 | 20.87 | 19.95 | 22.47 |
The activity ratios of Grocery Outlet Holding Corp provide insights into how efficiently the company manages its assets and operations.
1. Inventory turnover: Grocery Outlet's inventory turnover has remained relatively stable over the past several quarters, ranging between 10.00 and 12.29 times per year. This indicates that the company is effectively managing its inventory levels and converting them into sales multiple times throughout the year.
2. Receivables turnover: The receivables turnover ratio has shown significant fluctuations, with the latest observation at 206.76. This suggests that Grocery Outlet is efficient in collecting payments from customers, converting its accounts receivable into cash quickly.
3. Payables turnover: Grocery Outlet's payables turnover ratio has also varied, but generally remained between 17.14 and 25.07. A higher payables turnover indicates that the company is paying its suppliers more frequently, potentially taking advantage of trade credit terms.
4. Working capital turnover: The working capital turnover ratio has shown a downward trend in recent quarters, indicating a decrease in the efficiency of utilizing working capital to generate sales. However, the ratio still remains relatively high, suggesting that Grocery Outlet is effectively using its working capital to support its operations and generate revenue.
Overall, these activity ratios indicate that Grocery Outlet Holding Corp is efficiently managing its inventory, accounts receivable, accounts payable, and working capital to drive sales and support its operational activities. However, the company may need to closely monitor the fluctuations in receivables turnover and working capital turnover to ensure optimal efficiency in the future.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 35.61 | 32.37 | 34.32 | 34.96 | 35.36 | 36.31 | 36.51 | 35.47 | 33.83 | 30.03 | 30.42 | 29.69 | 29.94 | 32.40 | 30.51 |
| Days of sales outstanding (DSO) | days | 1.77 | 2.17 | 1.38 | — | 1.56 | — | — | — | 1.24 | — | — | — | — | — | — |
| Number of days of payables | days | 21.30 | 19.30 | 15.77 | — | 14.56 | — | — | — | 14.99 | — | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for Grocery Outlet Holding Corp has exhibited some fluctuations over the past few quarters, ranging from 29.69 days to 36.51 days. This indicates the average number of days the company holds inventory before selling it, with lower days suggesting a more efficient inventory turnover.
The Days of Sales Outstanding (DSO) metric shows the average number of days it takes the company to collect on its sales. The data provided is somewhat sporadic, with values ranging from 1.24 days to 2.17 days. Lower DSO values suggest a more efficient collection process.
The Number of Days of Payables metric represents the average number of days it takes the company to pay its suppliers. The values range from 14.56 days to 21.30 days, indicating the company's payment practices.
Overall, fluctuations in these activity ratios can provide insights into the efficiency of Grocery Outlet Holding Corp's operations in managing inventory, collecting receivables, and settling payables. The company should aim to maintain a balance between these ratios to optimize cash flow and operational effectiveness.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 6.16 | 6.21 | 6.43 | 6.44 | 6.35 | 6.35 | 6.25 | 6.17 | 6.14 | 6.38 | 6.55 | 6.79 | 7.19 | 7.43 | 7.54 |
| Total asset turnover | 1.33 | 1.33 | 1.35 | 1.33 | 1.28 | 1.24 | 1.21 | 1.16 | 1.15 | 1.18 | 1.20 | 1.25 | 1.25 | 1.24 | 1.23 |
The fixed asset turnover ratio for Grocery Outlet Holding Corp has been relatively stable over the past few quarters, ranging between 6.14 and 7.54. This indicates that the company is generating between $6.14 and $7.54 in sales for every dollar invested in fixed assets. The consistency in this ratio suggests that the company is effectively utilizing its fixed assets to drive sales.
On the other hand, the total asset turnover ratio has also shown consistency, hovering around 1.15 to 1.35. This ratio reflects how efficiently the company is using all its assets to generate revenue, with values greater than 1 indicating efficient asset utilization. Grocery Outlet Holding Corp's total asset turnover demonstrates a consistent and stable performance in converting its assets into sales.
Overall, the company's long-term activity ratios suggest effective management of assets to drive sales, both in terms of fixed assets and total assets. The stable nature of these ratios indicates a consistent operational efficiency in utilizing assets to support revenue generation over the analyzed period.