Hertz Global Holdings Inc (HTZ)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 17.28 | 15.70 | 13.74 | 13.74 | 12.01 | — | — | 12.40 | 4.18 | 3.86 | 2.31 | 1.61 | 7.51 | 6.15 | 16.81 | 13.41 | 28.80 | 27.71 | 15.98 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | — | — | 11.02 | 6.81 | — | — | — | — | — | — | — | — | — | — |
Inventory turnover for Hertz Global Holdings Inc. is not available in the provided data.
Receivables turnover has shown a fluctuating trend over the past five quarters, ranging from a low of 6.55 in Q3 2023 to a high of 8.92 in Q4 2022. This ratio indicates how efficiently the company is able to collect outstanding receivables from customers. A higher turnover ratio suggests that the company is collecting receivables more quickly.
Payables turnover for Hertz Global Holdings is not available in the data provided.
Working capital turnover has been increasing steadily over the past five quarters, from 6.50 in Q4 2022 to 10.03 in Q4 2023. This ratio reflects how effectively the company utilizes its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is efficient in turning its working capital into revenue.
In summary, while the receivables turnover ratio has been fluctuating, the working capital turnover ratio has shown a consistent upward trend, indicating that Hertz Global Holdings Inc. has been improving its efficiency in managing working capital and generating sales revenue.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 21.12 | 23.24 | 26.56 | 26.56 | 30.39 | — | — | 29.42 | 87.28 | 94.60 | 158.28 | 226.23 | 48.63 | 59.31 | 21.71 | 27.23 | 12.68 | 13.17 | 22.83 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the activity ratios provided for Hertz Global Holdings Inc., the days of sales outstanding (DSO) have been fluctuating over the past five quarters. In Q4 2022, the company had a DSO of 40.93 days, which increased to 55.69 days in Q3 2023 before slightly declining to 46.39 days in Q4 2023. This indicates that the average number of days it takes for the company to collect revenue from its customers has been somewhat volatile.
With regards to days of inventory on hand, the data is not available for any of the quarters, making it challenging to assess how efficiently the company is managing its inventory turnover. Additionally, the number of days of payables is also not provided, further limiting the ability to analyze the company's payment policies and liquidity management.
Overall, based on the available data, the trend in DSO suggests that there may be some inconsistencies in the company's accounts receivable management. The absence of information on inventory turnover and payables turnover restricts a comprehensive assessment of Hertz Global Holdings Inc.'s operational efficiency and working capital management. Further analysis and additional data are required to gain a more detailed understanding of the company's activity ratios and financial performance.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 13.97 | 0.57 | 0.55 | 0.62 | 13.63 | 0.68 | 13.77 | 12.86 | 12.07 | 10.88 | 9.17 | 7.26 | 7.89 | 9.08 | 10.94 | 12.54 | 12.92 | 12.86 | 12.53 | 12.38 |
| Total asset turnover | 0.38 | 0.36 | 0.35 | 0.38 | 0.39 | 0.40 | 0.38 | 0.38 | 0.37 | 0.34 | 0.30 | 0.28 | 0.31 | 0.34 | 0.34 | 0.37 | 0.40 | 0.38 | 0.37 | 0.40 |
Hertz Global Holdings Inc.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, reveal insights into the efficiency of the company's utilization of its assets over a span of five quarters.
1. Fixed Asset Turnover:
The fixed asset turnover ratio measures the company's ability to generate sales from its investment in fixed assets, such as property, plant, and equipment. A lower ratio indicates that the company is less efficient in generating revenue from its fixed assets. Hertz's fixed asset turnover ratio has been declining steadily from 0.66 in Q4 2022 to 0.61 in Q4 2023, indicating a slight deterioration in the company's efficiency in utilizing its fixed assets to generate sales. This may raise concerns about the effectiveness of the company's investment in fixed assets and the management of its asset base.
2. Total Asset Turnover:
The total asset turnover ratio reflects the company's overall efficiency in generating sales from all its assets, including both fixed and current assets. A lower total asset turnover ratio suggests that the company is less effective in generating revenue from its total asset base. Hertz's total asset turnover ratio has also shown a declining trend, dropping from 0.39 in Q4 2022 to 0.38 in Q4 2023. This decline indicates potential challenges in efficiently utilizing the company's overall asset base to drive revenue generation, which could point to issues related to operational efficiency or changes in business strategy that may be impacting the company's performance.
In conclusion, the decreasing trends in both the fixed asset turnover and total asset turnover ratios for Hertz Global Holdings Inc. suggest a potential inefficiency in the company's asset utilization and raise important considerations regarding the company's management of its asset base and overall business operations. Further analysis and evaluation of the factors influencing these ratios would be necessary to determine the root causes of the declining efficiency in asset turnover and to develop appropriate strategies for improvement.