Hertz Global Holdings Inc (HTZ)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 11.90 | 11.74 | 2.55 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 5.34 | — | 4.80 | 2.59 | 3.53 |
Hertz Global Holdings Inc's inventory turnover ratio has significantly improved over the years, indicating a more efficient management of inventory. In 2020, the ratio was 2.55, but by the end of 2024, it had increased to 11.90. This suggests that the company is selling its inventory at a much faster rate in the later years.
On the other hand, there is no information available for receivables turnover and payables turnover ratios, meaning that we cannot assess how quickly the company is collecting payments from customers or paying its suppliers.
The working capital turnover ratio provides insights into how effectively the company is utilizing its working capital to generate sales. Hertz Global Holdings Inc's working capital turnover ratio has shown some fluctuations, with a decrease in 2021 to 2.59, followed by an increase to 4.80 in 2022, and a further rise to 5.34 in 2024. This indicates that the company has been using its working capital more efficiently in recent years to generate revenue.
Overall, based on the available activity ratios data, Hertz Global Holdings Inc seems to have made significant improvements in its inventory turnover and working capital turnover, suggesting better operational efficiency and utilization of resources.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 30.68 | 31.10 | 143.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, we can analyze the activity ratios of Hertz Global Holdings Inc as follows:
1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days, on average, a company holds its inventory before selling it.
- Hertz Global Holdings Inc's DOH has decreased significantly from 143.32 days in December 2020 to 30.68 days in December 2022.
- The declining trend in DOH suggests that Hertz is managing its inventory efficiently, potentially reducing carrying costs and minimizing the risk of inventory obsolescence.
2. Days of Sales Outstanding (DSO):
- The DSO ratio indicates the average number of days it takes for a company to collect payment after making a sale.
- However, the data provided shows that there are no figures available for DSO for Hertz Global Holdings Inc for the years 2020 to 2024.
- Without DSO data, it is challenging to assess the company's efficiency in collecting accounts receivable and managing its cash flow from sales.
3. Number of Days of Payables:
- The number of days of payables ratio reflects the average number of days a company takes to pay its suppliers.
- Similar to DSO, there is no information available for the number of days of payables for Hertz Global Holdings Inc for the years 2020 to 2024.
- Lack of data on the number of days of payables hinders the analysis of how effectively Hertz is managing its trade credit and relationships with suppliers.
In conclusion, based on the available information, Hertz Global Holdings Inc has shown a substantial improvement in managing its inventory turnover, as evidenced by the decreasing trend in Days of Inventory on Hand. However, the lack of data for Days of Sales Outstanding and Number of Days of Payables limits a comprehensive assessment of the company's overall efficiency in managing its working capital and liquidity.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.70 | 12.07 | 2.25 |
| Total asset turnover | 0.42 | 0.38 | 0.39 | 0.37 | 0.31 |
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. In the case of Hertz Global Holdings Inc, we observe a significant increase in fixed asset turnover from 2.25 in 2020 to 12.07 in 2021. This sharp rise suggests a substantial improvement in the company's ability to generate revenue from its fixed assets during the period.
However, there is a notable decline in the fixed asset turnover ratio to 0.70 in 2022, indicating a potential decrease in the efficiency of utilizing fixed assets to generate revenue. Furthermore, the absence of data for 2023 and 2024 hinders a comprehensive analysis of the company's fixed asset turnover trend during these years.
Moving on to the total asset turnover ratio, which measures how efficiently a company utilizes all its assets to generate revenue, we see a gradual improvement from 0.31 in 2020 to 0.42 in 2024. This suggests that Hertz Global Holdings Inc has been more efficient in generating revenue from its total assets over the years.
Overall, while the fixed asset turnover ratio exhibited fluctuations over the years, the total asset turnover ratio showed a positive trend, indicating an improvement in the company's overall asset utilization efficiency.