H&R Block Inc (HRB)

Short-term

Turnover ratios

H&R Block Inc's activity ratios provide insights into how efficiently the company is managing its assets and liabilities to generate sales.

1. Inventory Turnover:
- Unfortunately, data for inventory turnover is not available for most of the years, making it challenging to assess the efficiency of managing inventory.

2. Receivables Turnover:
- Receivables turnover has shown a declining trend from 2022 to 2024. This indicates that the company is taking longer to collect payments from customers, which may impact cash flow and liquidity.

3. Payables Turnover:
- Data for payables turnover is not available for the specified years, preventing analysis of how quickly H&R Block Inc is paying its suppliers.

4. Working Capital Turnover:
- The working capital turnover has been increasing steadily from 2011 to 2014, indicating an improvement in the efficiency of converting working capital into sales over the years. This suggests that the company is utilizing its working capital more effectively to generate revenue.

Overall, while the working capital turnover shows efficiency in utilizing resources to drive sales, the declining trend in receivables turnover may raise concerns about the collection efficiency of revenues. The lack of data for inventory and payables turnover limits a comprehensive analysis of H&R Block Inc's overall activity ratios.

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Average number of days

The activity ratios for H&R Block Inc show the following trends over the past five years:

Days of Inventory on Hand (DOH):
- In 2024, the DOH is not reported, indicating that H&R Block might not hold significant inventory.
- In 2023, the DOH was 3.71 days, suggesting that the company efficiently manages its inventory and quickly turns over its stock.
- No data is available for DOH in 2022, 2021, and 2020.

Days of Sales Outstanding (DSO):
- The DSO has remained relatively stable over the years, indicating that H&R Block efficiently collects payments from its customers.
- In 2024, the DSO is 7.14 days, showing a slight increase compared to the previous year.
- In 2023, the DSO was 6.44 days, and in 2022, it was 6.32 days, both reflecting prompt collection of sales proceeds.
- A significant increase in DSO was observed in 2021 (21.83 days) and 2020 (19.11 days), suggesting possible issues with collecting payments during those periods.

Number of Days of Payables:
- No data is available for the number of days of payables for any of the years provided, indicating the absence of information regarding the company's payment practices to suppliers.

Overall, based on the information available, H&R Block Inc appears to efficiently manage its inventory and collect payments from customers promptly. However, further insight could be gained by assessing the company's payment practices to suppliers, which could provide a more comprehensive view of its overall efficiency in managing its working capital.

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Long-term

H&R Block Inc's long-term activity ratios indicate the company's efficiency in utilizing its assets to generate revenue.

The fixed asset turnover ratio has been consistently high over the years, with a notable increase from 13.80 in April 2020 to 26.89 in June 2024. This suggests that the company is effectively using its fixed assets to generate sales revenue. A higher fixed asset turnover ratio typically indicates efficient management of fixed assets to drive sales.

On the other hand, the total asset turnover ratio has shown fluctuation but generally reflects an upward trend, climbing from 0.50 in April 2020 to 1.10 in June 2024. This indicates that H&R Block Inc has been improving its overall efficiency in generating sales revenue from all its assets. A higher total asset turnover ratio signifies more efficient use of both fixed and current assets to generate sales.

Overall, the upward trend in both fixed asset turnover and total asset turnover ratios suggests that H&R Block Inc has been successful in maximizing its asset utilization efficiency, which is a positive sign for the company's operational performance and financial health.