Harley-Davidson Inc (HOG)

Short-term

Turnover ratios

Activity ratios provide insight into how efficiently a company is managing its resources. Let's analyze the activity ratios of Harley-Davidson Inc based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio reflects how many times a company's inventory is sold and replaced during a specific period.
- Harley-Davidson's inventory turnover has fluctuated over the years, ranging from a low of 3.92 to a high of 10.20.
- A higher inventory turnover indicates that Harley-Davidson is selling its inventory more rapidly, which could be positive for cash flow and profitability.

2. Receivables Turnover:
- Unfortunately, data for Harley-Davidson's receivables turnover is not available in the provided dataset. This ratio would have indicated how efficiently the company collects payments from its customers.

3. Payables Turnover:
- Similar to receivables turnover, data for Harley-Davidson's payables turnover is not available in the provided dataset. This ratio would have shown how effectively the company manages its payments to suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales.
- Harley-Davidson's working capital turnover has varied, indicating changes in the efficiency of its working capital management.
- A higher working capital turnover ratio suggests that the company is utilizing its working capital efficiently to generate revenue.

In conclusion, Harley-Davidson Inc's inventory turnover and working capital turnover ratios provide insights into its operational efficiency and management of resources. However, without data on receivables and payables turnover, a comprehensive analysis of the company's overall activity efficiency is limited.

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Average number of days

Based on the provided data for Harley-Davidson Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand indicate how many days, on average, the company holds onto its inventory before selling it.
- The trend for Harley-Davidson Inc's DOH shows some fluctuations over the periods provided, ranging from a low of 35.77 days to a high of 93.11 days.
- A lower DOH is generally favorable as it suggests efficient inventory management and faster turnover of goods, while a higher DOH may indicate overstocking or slow sales.

2. Days of Sales Outstanding (DSO):
- Unfortunately, the data for Days of Sales Outstanding is missing for all periods, making it difficult to analyze the company's efficiency in collecting on credit sales.
- DSO typically measures how long it takes for a company to collect its accounts receivable, with a lower DSO indicating quicker collection.

3. Number of Days of Payables:
- Similar to DSO, there is no data available for the number of days of payables, which would have provided insights into how long the company takes to pay its suppliers.
- A longer payable period can indicate the company has more time to pay its bills, potentially improving cash flow, but could strain relationships with suppliers if excessively long.

In conclusion, while we could analyze the trend and implications of the Days of Inventory on Hand for Harley-Davidson Inc, the missing data for Days of Sales Outstanding and Number of Days of Payables limits our ability to provide a comprehensive assessment of the company's activity ratios.

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Long-term

The fixed asset turnover ratio for Harley-Davidson Inc has shown a consistent increase from March 31, 2020, to March 31, 2023, peaking at 8.77. This indicates that the company has been able to generate more revenue from its fixed assets over this period.

On the other hand, the total asset turnover ratio initially decreased from March 31, 2020, to June 30, 2020, but then gradually increased up to December 31, 2023, where it stabilized around 0.48 to 0.50. This ratio suggests that the company has been efficient in utilizing its total assets to generate sales.

Overall, the increasing trend in the fixed asset turnover ratio coupled with the stable total asset turnover ratio indicates that Harley-Davidson has been effectively using both its fixed and total assets to generate revenue, reflecting operational efficiency and effectiveness in the long term.