Hayward Holdings Inc (HAYW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.41 | 2.40 | 2.53 | 3.20 | 3.29 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 2.32 | 2.05 | 3.46 | 3.14 | 4.25 |
Hayward Holdings Inc's activity ratios provide insights into the efficiency of the company's operations.
1. Inventory Turnover: The inventory turnover ratio declined from 3.29 in 2020 to 2.41 in 2024. This indicates that the company is taking longer to sell its inventory over the years. Lower inventory turnover may suggest overstocking, slow sales, or inefficient inventory management.
2. Receivables Turnover: The receivables turnover ratio is not available for analysis as the data is not provided for any of the years. This ratio typically shows how quickly the company collects its accounts receivables, indicating effectiveness in collecting payments from customers.
3. Payables Turnover: The payables turnover ratio is not available, so we cannot assess how quickly the company pays its suppliers. A higher payables turnover ratio usually signifies efficient management of payables.
4. Working Capital Turnover: The working capital turnover ratio decreased from 4.25 in 2020 to 2.32 in 2024. This decline indicates that the company's working capital is being utilized less efficiently to generate sales revenue. A lower working capital turnover ratio may point to potential issues in managing working capital effectively.
In summary, Hayward Holdings Inc should focus on improving its inventory turnover and working capital turnover ratios to enhance operational efficiency and optimize its resources for better financial performance. The lack of data on receivables and payables turnover limits a comprehensive analysis of the company's working capital cycle and cash flow management.
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 | 151.70 | 152.36 | 144.38 | 114.22 | 110.86 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Hayward Holdings Inc's activity ratios indicate how efficiently the company manages its operations.
1. Days of Inventory on Hand (DOH):
- The number of days of inventory on hand has been increasing steadily over the years, from 110.86 days in 2020 to 151.70 days in 2024.
- This suggests that Hayward Holdings Inc is taking longer to convert its inventory into sales, which could tie up capital and potentially indicate inefficiencies in inventory management or slow-moving inventory.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on the days of sales outstanding for Hayward Holdings Inc for the years 2020 to 2024.
- DSO measures how long it takes for a company to collect payments from its customers. The absence of data makes it difficult to assess the efficiency of the company's accounts receivable management.
3. Number of Days of Payables:
- Similar to DSO, there is no data available for the number of days of payables for Hayward Holdings Inc for the years 2020 to 2024.
- This ratio would indicate how long the company takes to pay its suppliers, providing insight into its ability to manage its accounts payable effectively.
Overall, based on the provided data, it appears that Hayward Holdings Inc may have challenges in managing its inventory efficiently, but further analysis would be necessary to fully evaluate its overall activity and working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 6.10 | 4.78 | 6.15 |
| Total asset turnover | 0.35 | 0.34 | 0.46 | 0.47 | 0.34 |
Hayward Holdings Inc's fixed asset turnover ratio has displayed some fluctuation over the years. In 2020, the ratio stood at 6.15, indicating that the company generated $6.15 in sales for every dollar invested in fixed assets. However, this ratio declined to 4.78 in 2021 before recovering to 6.10 in 2022. Unfortunately, the data for 2023 and 2024 is unavailable.
On the other hand, the total asset turnover ratio, reflecting the company's efficiency in generating sales from its total assets, has shown more stability. In 2020, the total asset turnover was 0.34, meaning the company generated $0.34 in sales for every dollar of assets. This ratio improved to 0.47 in 2021 but then decreased slightly to 0.46 in 2022. In 2023 and 2024, the total asset turnover ratios were 0.34 and 0.35, respectively.
Overall, while the total asset turnover has shown more consistency, the fixed asset turnover has been subject to greater variation, potentially indicating changes in the company's utilization of fixed assets to generate sales. More recent data would be needed to fully assess the trend in the long-term activity ratios of Hayward Holdings Inc.