Helen of Troy Ltd (HELE)
Activity ratios
Short-term
Turnover ratios
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 4.45 | 4.16 | 4.15 | 4.24 | 4.13 | 3.68 | 3.15 | 3.20 | 3.52 | 3.26 | 3.16 | 3.60 | 3.81 | 3.62 | 3.56 | 4.26 | 4.45 | 3.29 | 2.89 | 3.14 |
| Receivables turnover | 4.95 | 4.20 | 5.04 | 5.69 | 5.38 | 4.24 | 4.37 | 4.58 | 4.83 | 4.23 | 5.01 | 5.43 | 5.45 | 4.04 | 4.62 | 5.24 | 4.88 | 4.49 | 5.14 | 6.01 |
| Payables turnover | 7.18 | 6.04 | 6.99 | 8.13 | 9.86 | 8.49 | 6.51 | 6.07 | 6.37 | 6.23 | 5.67 | 6.12 | 5.48 | 4.61 | 4.45 | 6.07 | 7.47 | 7.76 | 6.43 | 7.57 |
| Working capital turnover | 4.96 | 4.71 | 4.69 | 4.79 | 4.24 | 3.57 | 3.39 | 3.80 | 4.61 | 3.96 | 4.38 | 4.56 | 5.84 | 4.11 | 4.12 | 4.45 | 4.94 | 3.99 | 4.06 | 4.54 |
Helen of Troy Ltd's inventory turnover ratio has been relatively stable over the past several periods, averaging around 4.00 times per year. This indicates that the company is able to sell and replace its inventory roughly four times a year. A higher inventory turnover ratio may suggest efficient inventory management.
The receivables turnover ratio has shown some fluctuations but generally remains above 4.00 times per year. This suggests that the company is collecting its accounts receivable in a timely manner, with an average collection period of around 73 days. Higher receivables turnover indicates effective credit management.
In terms of payables turnover, Helen of Troy Ltd's ratio has varied significantly, ranging from 4.00 to 9.00 times per year in recent periods. A higher payables turnover ratio may indicate that the company is paying its suppliers more quickly, potentially benefiting from early payment discounts or negotiating favorable credit terms.
The working capital turnover ratio has also shown fluctuations but has averaged around 4.50 times per year. This ratio reflects the company's ability to generate sales relative to its working capital. A higher working capital turnover ratio suggests efficient utilization of working capital resources.
Overall, Helen of Troy Ltd's activity ratios indicate that the company is effectively managing its inventory, receivables, payables, and working capital to support its operational activities and drive business performance.
Average number of days
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 81.99 | 87.82 | 87.89 | 86.12 | 88.47 | 99.23 | 115.77 | 114.19 | 103.72 | 112.06 | 115.64 | 101.46 | 95.80 | 100.74 | 102.42 | 85.78 | 82.03 | 110.90 | 126.41 | 116.20 |
| Days of sales outstanding (DSO) | days | 73.79 | 86.94 | 72.38 | 64.20 | 67.82 | 86.18 | 83.50 | 79.78 | 75.56 | 86.37 | 72.82 | 67.20 | 66.92 | 90.26 | 78.92 | 69.72 | 74.80 | 81.32 | 70.95 | 60.77 |
| Number of days of payables | days | 50.80 | 60.41 | 52.18 | 44.89 | 37.02 | 42.97 | 56.09 | 60.13 | 57.29 | 58.54 | 64.33 | 59.66 | 66.60 | 79.13 | 82.04 | 60.11 | 48.86 | 47.04 | 56.81 | 48.19 |
Helen of Troy Ltd's activity ratios provide valuable insights into the company's operational efficiency and management of its assets and liabilities.
1. Days of Inventory on Hand (DOH): The trend in DOH indicates the number of days it takes for the company to turn its inventory into sales. A decreasing trend in DOH is generally favorable as it suggests efficient inventory management. Helen of Troy Ltd's DOH has fluctuated over the analyzed periods, ranging from 81.99 days to 126.41 days. The company should aim to reduce DOH to optimize its inventory turnover and minimize carrying costs.
2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for the company to collect payments from its customers. A lower DSO is typically preferable as it indicates faster cash conversion. Helen of Troy Ltd's DSO has varied between 64.20 days and 90.26 days in the analyzed periods. The company should focus on minimizing DSO to enhance its cash flow and liquidity.
3. Number of Days of Payables: This ratio reveals the average number of days it takes for the company to settle its accounts payable. A higher number of days of payables may indicate favorable credit terms with suppliers. Helen of Troy Ltd's days of payables range from 37.02 days to 82.04 days, showing some variability. The company should balance its payables to maintain good relationships with suppliers while optimizing its working capital management.
Overall, by monitoring and managing these activity ratios effectively, Helen of Troy Ltd can enhance its operational performance, cash flow position, and overall financial health.
Long-term
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.80 | 5.80 | 5.81 | 5.61 | 5.78 | 6.39 | 7.24 | 7.75 | 10.76 | 12.95 | 14.37 | 16.42 | 15.28 | 14.89 | 13.57 | 13.06 | 12.85 | 12.51 | 12.17 | 12.12 |
| Total asset turnover | 0.69 | 0.66 | 0.67 | 0.69 | 0.70 | 0.68 | 0.69 | 0.69 | 0.78 | 0.86 | 0.90 | 0.94 | 0.92 | 0.87 | 0.86 | 0.88 | 0.89 | 0.92 | 0.90 | 0.93 |
The fixed asset turnover ratio for Helen of Troy Ltd has shown fluctuations over the past 20 reporting periods, ranging from a low of 5.61 to a high of 16.42. This ratio indicates the efficiency with which the company generates sales revenue from its fixed assets. Generally, a higher fixed asset turnover ratio is preferred as it suggests that the company is utilizing its fixed assets more efficiently to generate revenue.
On the other hand, the total asset turnover ratio has also fluctuated over the same period, ranging from 0.66 to 0.94. This ratio measures how efficiently the company generates sales revenue from its total assets. A higher total asset turnover ratio implies that the company is effectively using its total assets to generate revenue.
Overall, the fixed asset turnover ratio has generally been higher and more volatile compared to the total asset turnover ratio for Helen of Troy Ltd. This could suggest that the company's fixed assets are being utilized more efficiently in generating revenue compared to its total assets. However, it is critical to consider other factors and trends in conjunction with these ratios to gain a comprehensive understanding of the company's long-term activity performance.