Helen of Troy Ltd (HELE)

Short-term

Turnover ratios

Inventory Turnover Ratio:
- The inventory turnover ratio measures how efficiently Helen of Troy Ltd is managing its inventory.
- The trend shows a slight decrease from 2.43 in 2021 to 2.19 in 2025, indicating a decrease in the rate at which inventory is being sold over the period.
- In 2024, there was a notable increase to 2.67, suggesting a temporary improvement in inventory management efficiency.

Receivables Turnover Ratio:
- The receivables turnover ratio, unfortunately, is not available for the years provided.
- This means we are unable to evaluate how quickly Helen of Troy Ltd is collecting payments from its customers.

Payables Turnover Ratio:
- Similarly, the payables turnover ratio is not available for the years provided.
- This means we are unable to assess how effectively Helen of Troy Ltd is managing its payments to suppliers.

Working Capital Turnover Ratio:
- The working capital turnover ratio measures the efficiency of Helen of Troy Ltd in using its working capital to generate sales.
- The trend shows some fluctuations, with a decrease from 5.88 in 2021 to 4.10 in 2025.
- The year 2024 saw an increase to 5.10, indicating that the company was able to generate more sales using its working capital efficiently.

Overall Analysis:
- While Helen of Troy Ltd has shown some fluctuations in its activity ratios, there is a general trend of a decrease in efficiency over the years, particularly in inventory turnover and working capital turnover.
- The lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall efficiency in managing its working capital and operating cycle.
- It would be beneficial for the company to focus on improving inventory management and working capital utilization to enhance overall operational efficiency.

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Average number of days

Based on the provided data, Helen of Troy Ltd's activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have shown fluctuations over the years, ranging from 136.82 days to 166.33 days.
- A decreasing trend from 2024 to 2023 indicates a more efficient management of inventory.
- However, the significant increase in 2025 suggests a possible buildup of excess inventory that may need to be managed carefully to avoid obsolescence or storage costs.

2. Days of Sales Outstanding (DSO):
- The data does not provide information on the days of sales outstanding for any of the years.
- DSO is a key metric that reflects the average number of days it takes for a company to collect revenue after a sale is made.
- Without data on DSO, it is challenging to assess Helen of Troy Ltd's efficiency in collecting outstanding receivables.

3. Number of Days of Payables:
- The information provided does not include the number of days of payables for any of the years.
- Days of payables represent the average number of days it takes a company to pay its suppliers.
- Without this data, it is difficult to evaluate how effectively Helen of Troy Ltd manages its payables in relation to its inventory and receivables turnover.

In conclusion, while the data on inventory turnover is available, the absence of information on sales outstanding and payables turnover limits a comprehensive analysis of Helen of Troy Ltd's activity ratios. Monitoring and effectively managing these ratios are crucial for maintaining optimal working capital and operational efficiency.

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Long-term

The fixed asset turnover ratio reflects how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets. Helen of Troy Ltd's fixed asset turnover has shown a declining trend over the years, from 15.37 in February 2021 to 5.89 in February 28, 2023. The significant decrease suggests a potential issue with the company's ability to generate sales from its fixed assets efficiently.

Total asset turnover ratio measures the company's overall efficiency in generating sales from its total assets. A declining total asset turnover ratio could indicate inefficiencies in asset utilization. Helen of Troy Ltd's total asset turnover ratio has also decreased from 0.93 in February 2021 to 0.61 in February 28, 2025. This downward trend suggests a declining ability to generate sales relative to its total assets, which could indicate inefficiencies or a decrease in the company's revenue-generating capacity.