Hayward Holdings Inc (HAYW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Inventory turnover | 3.75 | 3.59 | 4.60 |
| Receivables turnover | 3.27 | 5.32 | 6.43 |
| Payables turnover | 11.69 | 18.82 | 12.29 |
| Working capital turnover | 1.89 | 3.31 | 2.99 |
Hayward Holdings Inc's activity ratios provide insight into how efficiently the company is managing its assets and operating cycle.
1. Inventory turnover:
Hayward Holdings Inc's inventory turnover has decreased over the three years, from 3.20 in 2021 to 2.40 in 2023. This decrease suggests that the company is managing its inventory less efficiently, with inventory staying in stock for a longer period before being sold.
2. Receivables turnover:
The receivables turnover for Hayward Holdings Inc has also decreased over the years, from 6.74 in 2021 to 3.53 in 2023. This decline indicates that the company is taking longer to collect payments from its customers, which may increase the risk of bad debts.
3. Payables turnover:
The payables turnover ratio has fluctuated over the years, with a significant decrease in 2022 followed by an increase in 2023. The payables turnover ratio of 7.48 in 2023 indicates that the company is taking approximately 7.48 times to pay off its suppliers, which may have implications on supplier relationships and cash flow management.
4. Working capital turnover:
The working capital turnover ratio has also shown a declining trend over the years, from 3.14 in 2021 to 2.05 in 2023. This suggests that Hayward Holdings Inc is generating less revenue relative to its working capital, indicating potential inefficiency in the utilization of its current assets to generate sales.
Overall, the activity ratios of Hayward Holdings Inc indicate some concerns regarding inventory management, collection of receivables, and working capital efficiency. It is essential for the company to address these issues to improve its operational performance and overall financial health.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 97.44 | 101.81 | 79.31 |
| Days of sales outstanding (DSO) | days | 111.69 | 68.63 | 56.80 |
| Number of days of payables | days | 31.22 | 19.39 | 29.71 |
Hayward Holdings Inc's activity ratios indicate changes in the efficiency of managing its assets and liabilities over the years.
- Days of Inventory on Hand (DOH): The company took longer to turn inventory into sales in 2023 compared to previous years, with 152.36 days, up from 144.38 days in 2022 and 114.22 days in 2021. This might suggest potential issues with inventory management or changing demand patterns.
- Days of Sales Outstanding (DSO): Hayward Holdings Inc's collection period increased significantly in 2023 to 103.30 days, compared to 65.63 days in 2022 and 54.19 days in 2021. The notable uptick in DSO could signal difficulties in collecting receivables promptly or changes in credit terms.
- Number of Days of Payables: The company's payment period to suppliers increased to 48.81 days in 2023, up from 27.50 days in 2022, but lower than 42.78 days in 2021. This longer payment period may have implications for cash flow management and relationships with suppliers.
In summary, Hayward Holdings Inc's activity ratios show a deterioration in inventory turnover, collection efficiency, and payment periods in 2023. Management may need to address these issues to enhance operational efficiency and optimize working capital management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Fixed asset turnover | 6.10 | 8.92 | 9.64 |
| Total asset turnover | 0.31 | 0.44 | 0.45 |
Hayward Holdings Inc's long-term activity ratios provide insights into the efficiency with which the company utilizes its resources to generate revenue. The fixed asset turnover ratio, which measures how effectively the company generates sales from its fixed assets, decreased from 9.55 in 2021 to 6.24 in 2023, indicating a decline in the company's ability to utilize its fixed assets efficiently to generate sales.
On the other hand, the total asset turnover ratio, which reflects the company's ability to generate sales from all its assets, showed a decreasing trend from 0.47 in 2021 to 0.34 in 2023. This suggests that the company is becoming less efficient in generating sales relative to its total asset base over the period analyzed.
Overall, the decreasing trend in both the fixed asset turnover and total asset turnover ratios may raise concerns about the company's asset utilization efficiency and its ability to generate adequate sales from its asset base. Further analysis and investigation into the factors affecting these ratios may be necessary to identify potential areas for improvement in the company's operational efficiency.