H&R Block Inc (HRB)

Short-term

Turnover ratios

The activity ratios of H&R Block Inc., as derived from the provided data, reveal several insights into the company's operational efficiency and asset management over the specified periods.

Inventory Turnover:
The inventory turnover ratio is largely absent until March 31, 2022, when it registers at 82.48, indicating high inventory turnover or possibly a reporting anomaly. Subsequently, the ratio fluctuates, with figures such as 68.85 on December 31, 2022, 77.63 on March 31, 2023, and declining slightly to 62.88 by September 30, 2023. A notable increase is observed post-June 30, 2024, reaching 111.47, suggesting an improvement in inventory management efficiency over this period. The absence of earlier data impedes a comprehensive trend analysis, but the later figures suggest periods of effective inventory utilization, possibly reflecting strategic shifts or seasonal cycles.

Receivables Turnover:
Receivables turnover demonstrates significant variability, starting with moderate levels of 5.45 and reaching peaks such as 27.91 on April 30, 2021, and 36.21 on June 30, 2023. The ratio's fluctuations imply variations in how quickly the company collects receivables, with periods of enhanced collection efficiency (e.g., June 2023) and periods of slower collection (e.g., December 2021 at 4.46). Generally, higher receivables turnover signifies efficient credit and collection policies, which are observable during certain periods, notably mid-2023. Conversely, lower ratios may indicate extended credit terms or collection challenges.

Payables Turnover:
The payables turnover ratio shows variable patterns, beginning with a lack of data until March 31, 2021, and subsequently fluctuating between approximately 5.69 and 15.25. Notably, the ratio peaks at 15.25 on September 30, 2021, and again reaches 14.73 on December 31, 2024, indicating periods of negotiated favorable credit terms or efficient payment cycles. The lower ratios, such as 5.69 on March 31, 2022, and 7.96 on March 31, 2024, suggest intervals where the company may have deferred payments or faced extended payment periods.

Working Capital Turnover:
Working capital turnover exhibits notable volatility, with early data points around 5.80 to 6.43 indicating a moderate efficiency in using working capital to generate sales. A substantial spike occurs on December 31, 2021, at 42.72, likely reflecting a significant change in working capital management or seasonal factors. Post-2022, the ratio generally fluctuates; for example, March 31, 2022, shows 15.23, whereas June 30, 2022, drops to about 8.98. The most striking data appears on March 31, 2024, with a remarkably high ratio of 164.29, indicating extremely efficient working capital utilization during that quarter. However, subsequent periods lack data, limiting further analysis.

Overall Observations:
- The data indicates periods of enhanced operational efficiency, reflected in higher inventory turnover and working capital ratios, particularly around the fiscal year-end of December 2021 and in March 2024.
- Fluctuations in receivables and payables turnover suggest variations in credit policies and supplier relationships, possibly influenced by seasonal factors or strategic adjustments.
- The absence of consistent data points limits the ability to establish definitive trends but highlights periods of efficiency and potential operational adjustments.

In summary, H&R Block Inc.'s activity ratios exhibit considerable variability, pointing to shifts in operational practices, seasonal influences, or reporting disparities during the covered periods. The most recent data, particularly the high working capital turnover in March 2024, may suggest improved asset management efficiencies, while earlier fluctuations highlight the dynamic nature of the company's operational environment.

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Average number of days

The analysis of H&R Block Inc’s activity ratios over the reported periods reveals notable trends and fluctuations in inventory management, receivables collection, and payables practices.

Days of Inventory on Hand (DOH):
Data indicates that for most periods, DOH figures are either not provided or unavailable, suggesting limited inventory holdings or negligible inventory levels common in a service-oriented business like H&R Block. Notably, the available data shows DOH values beginning from 2022 onward, with a low and stable range, e.g., 5.30 days at the end of 2022, 4.70 days in March 2023, increasing slightly to 5.38 days in June 2023, and then 5.80 days in September 2023. Subsequently, a significant reduction is observed in June 2024, with DOH decreasing to approximately 3.27 days, aligning with the company's operational efficiencies and possibly reflecting streamlined inventory or work-in-progress management. The absence of earlier data underscores that inventory is not a critical component of H&R Block’s activities.

Days of Sales Outstanding (DSO):
The DSO figures convey the company’s receivables collection performance. In early 2021, DSO was notably high at roughly 67 days, but showed a decreasing trend over time, reaching a low of approximately 6.17 days in June 2025. The period from 2021 to 2022 displays variability, with DSO fluctuating between approximately 13 days and over 82 days, though the most recent data shows consistent efficiencies, with TXO decreasing to near 6 days in mid-2024 before a slight increase again in 2025. This trend suggests ongoing improvements in accounts receivable collections, likely driven by enhanced payment processes or changes in customer payment behavior.

Number of Days of Payables:
Analysis indicates variability in the company’s payment periods to suppliers or creditors. The earliest available data from March 2021 shows payables at 39.25 days, which then varies substantially over time. Notably, periods such as June 2022 and September 2022 record payables close to 34 days, while March 2022 stands out with a significantly longer period of 64.20 days, indicating extended credit terms or delayed payments. Recent data points, e.g., around March 2024, show payables averaging approximately 45.88 days, suggesting the company may be managing its cash flow by extending payables durations strategically. The fluctuations may reflect changes in vendor negotiations or shifts in liquidity management.

Overall Assessment:
The available data underscores that H&R Block’s activity ratios are characterized by low inventory levels, consistent receivables collection efficiency, and fluctuating accounts payable periods. The decreasing trend in DSO indicates enhanced receivables management, while the variability in payables suggests a flexible approach to working capital management, possibly to optimize cash flows. The minimal inventory presence aligns with the company's primarily service-based operations, and the recent efforts toward faster receivables collection reflect operational improvements and possibly strategic financial management initiatives.

(Note: Data gaps and inconsistent periods limit a complete longitudinal analysis, but the observed trends point towards an increasingly efficient working capital management approach in recent periods.)

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Long-term

The analysis of H&R Block Inc.'s long-term activity ratios, based on the provided data, reveals varied performance across different periods.

Fixed Asset Turnover Ratio:
The ratio exhibits inconsistency throughout the observed timeline. Notably, a high value of 37.19 was recorded on April 30, 2021, indicating a period of efficient utilization of fixed assets in generating revenue. Conversely, during several subsequent periods, particularly between September 2021 and December 2022, the ratio declined significantly, settling around 6.38 to 6.66 in late 2022 and early 2023. The spike observed on June 30, 2023, reaching 26.71, suggests a temporary improvement in asset utilization, followed by stabilization around 6.39 to 6.79 in late 2023 and early 2024. The fluctuations could reflect changes in asset base, company strategies, or operational focus, with exceptionally high ratios indicating periods where fixed assets substantially contributed to revenue generation.

Total Asset Turnover Ratio:
This ratio demonstrates relatively moderate variability but trends towards stabilization over time. It started at 0.97 as of January 31, 2021, then experienced minor declines and increases, with notable peaks such as 1.51 on April 30, 2021, and later reaching as high as 1.42 on September 30, 2024. Conversely, the ratio dipped to 0.71 on March 31, 2022, indicating a period of less efficient asset utilization. Throughout the period, the ratio oscillates mostly within a range of approximately 0.7 to 1.5, suggesting incremental improvements in how effectively total assets are generating revenue. The values in late 2023 and mid-2024 tend to stabilize around 1.1 to 1.4, reflecting consistent overall asset productivity.

Overall, the long-term activity ratios reveal periods of operational efficiency spikes and declines, with the fixed asset turnover showing more volatility relative to the more stable total asset turnover. The fluctuations may indicate strategic asset reallocation, investment phases, or changes in revenue-generating activities, which are typical in cyclical or evolving business environments. The data suggests that while H&R Block's asset utilization experiences intermittent peaks, the company generally maintains moderate efficiency in using its total assets over the observed periods.