Hasbro Inc (HAS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 14.73 | 6.59 | 7.42 | 10.15 | 7.57 |
| Receivables turnover | 4.86 | 5.17 | 4.28 | 3.93 | 3.35 |
| Payables turnover | 14.35 | 10.43 | 7.06 | 9.44 | 9.82 |
| Working capital turnover | 18.72 | 7.24 | 5.05 | 3.79 | 0.86 |
Inventory turnover measures how many times a company has sold and replaced its inventory during a specific period. Hasbro, Inc. has shown a consistent improvement in its inventory turnover ratio over the past five years, indicating a more efficient management of inventory levels. This could be a result of better inventory management strategies or increased demand for its products.
Receivables turnover ratio reflects how effectively a company is collecting payments from its customers. Hasbro, Inc. experienced fluctuations in its receivables turnover ratio, but overall, it has been relatively stable over the period. A high turnover ratio suggests that the company efficiently collects on credit sales, which is positive for its cash flow.
Payables turnover ratio measures how quickly a company is paying its suppliers. Hasbro, Inc. has maintained a relatively steady payables turnover ratio over the years, indicating consistent payment practices. A higher turnover ratio suggests that Hasbro is managing its payables efficiently and may have good relationships with its suppliers.
Working capital turnover ratio shows how efficiently a company is utilizing its working capital to generate sales. Hasbro, Inc. has shown a significant improvement in its working capital turnover ratio, indicating that the company is generating more sales from its working capital. This could signify better operational efficiency and effective use of resources.
Overall, Hasbro, Inc. has demonstrated positive trends in its activity ratios, which suggest improvements in managing its inventory, collecting receivables, paying payables, and utilizing working capital to drive sales. These ratios indicate that the company is effectively managing its resources and operations to support its business activities.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 24.79 | 55.42 | 49.18 | 35.95 | 48.23 |
| Days of sales outstanding (DSO) | days | 75.09 | 70.57 | 85.30 | 92.94 | 109.08 |
| Number of days of payables | days | 25.43 | 34.99 | 51.68 | 38.66 | 37.18 |
To analyze Hasbro, Inc.'s activity ratios, we will focus on three key metrics: Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables.
1. Days of Inventory on Hand (DOH):
- Hasbro's DOH has been fluctuating over the past five years. In 2023, the company held inventory for approximately 71.03 days, representing an improvement from the previous year. This suggests that Hasbro managed its inventory more efficiently in 2023 compared to prior years.
- A lower DOH indicates that Hasbro is turning over its inventory more quickly, potentially leading to reduced carrying costs and better liquidity.
2. Days of Sales Outstanding (DSO):
- The trend in Hasbro's DSO has been variable over the five-year period. In 2023, the company collected cash from sales in around 75.09 days, which showed a slight increase compared to the previous year.
- An increase in DSO could indicate less efficient collection of accounts receivable, potentially impacting cash flow and liquidity.
3. Number of Days of Payables:
- Hasbro's days of payables have also varied over the years. In 2023, the company took approximately 72.87 days to pay its suppliers, which was lower compared to the previous year.
- A decrease in the number of days of payables may imply a more aggressive approach by Hasbro in managing its payables and potentially maintaining good relationships with suppliers.
In conclusion, while Hasbro has shown some improvements in managing its inventory and payables in 2023, the company needs to focus on optimizing its accounts receivable collection to enhance its overall working capital management efficiency. Monitoring and improving these activity ratios will be crucial for Hasbro's financial health and sustainable growth.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 13.83 | 19.23 | 24.52 | 18.39 | 18.47 |
| Total asset turnover | 0.76 | 0.63 | 0.64 | 0.51 | 0.53 |
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. Hasbro, Inc.'s fixed asset turnover has experienced fluctuations over the past five years, ranging from 10.24 in 2023 to 11.18 in 2020. This indicates that in 2023, $10.24 in sales was generated for every $1 of fixed assets owned by the company.
On the other hand, the total asset turnover ratio indicates how well a company is utilizing all of its assets to generate revenue. Hasbro's total asset turnover has also varied in recent years, with the ratio improving from 0.53 in 2019 to 0.76 in 2023. This suggests that the company generated $0.76 in sales for every $1 of total assets in 2023.
Overall, Hasbro, Inc. has shown efficiency in both its fixed asset utilization and total asset turnover, as indicated by the increasing trend in both ratios over the years. However, it is important to analyze these ratios in conjunction with other financial metrics to gain a comprehensive understanding of the company's operational performance and asset management efficiency.