Hertz Global Holdings Inc (HTZ)

Short-term

Turnover ratios

Based on the provided data, let's analyze the activity ratios of Hertz Global Holdings Inc:

1. Inventory Turnover Ratio:
- The inventory turnover ratio measures how efficiently the company manages its inventory. A high ratio indicates that inventory is selling quickly.
- Hertz's inventory turnover ratio fluctuated over the years. It was highest in September 2024 at 15.24, suggesting an improvement in inventory management efficiency.

2. Receivables Turnover Ratio:
- Unfortunately, there is no data available for the receivables turnover ratio, so we are unable to assess how quickly the company collects its outstanding receivables.

3. Payables Turnover Ratio:
- Similarly, data for the payables turnover ratio is not provided, making it impossible to evaluate how quickly the company pays its suppliers.

4. Working Capital Turnover Ratio:
- The working capital turnover ratio indicates how efficiently the company utilizes its working capital to generate sales.
- Hertz's working capital turnover improved significantly from March 2020 to June 2024, with the ratio peaking at 13.15 in March 2024. This indicates a better utilization of working capital to drive sales during this period.

Overall, the data suggests improvements in inventory turnover and working capital turnover for Hertz Global Holdings Inc, while the lack of information on receivables and payables turnover ratios limits our ability to provide a comprehensive analysis of the company's activity ratios.

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Average number of days

To analyze the activity ratios of Hertz Global Holdings Inc, we will focus on two key metrics: Days of Inventory on Hand (DOH) and Days of Sales Outstanding (DSO).

1. Days of Inventory on Hand (DOH):
- DOH represents the average number of days a company holds inventory before selling it.
- From the data provided, we observe fluctuations in Hertz's DOH over the quarters, ranging from as low as 17.64 days to as high as 143.29 days.
- A decreasing trend in DOH is generally positive as it indicates inventory turnover efficiency.
- For Hertz, the DOH decreased significantly from 143.29 days on December 31, 2020, to 31.12 days on December 31, 2021, suggesting improved inventory management.
- Subsequently, the DOH continued to decline, reaching 26.24 days by December 31, 2022, and further decreased to 23.96 days by September 30, 2023.
- The decreasing trend in DOH indicates Hertz's ability to manage and sell its inventory more efficiently over time.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for a company to collect its accounts receivable from sales.
- Unfortunately, the data provided does not contain any information on DSO values for Hertz, limiting our analysis of this metric.
- Typically, a lower DSO is desirable as it implies faster collections, improved cash flow, and potentially more efficient credit and billing practices.
- Without DSO data, it is challenging to assess Hertz's effectiveness in collecting accounts receivable and managing its working capital cycle efficiently.

In conclusion, based on the available information, Hertz Global Holdings Inc has shown improvements in its inventory management efficiency through a decreasing trend in Days of Inventory on Hand. However, without data on Days of Sales Outstanding, a comprehensive analysis of the company's overall activity ratios and working capital management is incomplete.

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Long-term

The fixed asset turnover ratio for Hertz Global Holdings Inc has displayed significant fluctuations over the reported periods, ranging from a high of 12.86 in March 2022 to a low of 0.57 in June 2023. This ratio measures the efficiency with which the company generates sales from its fixed assets. A high fixed asset turnover ratio signifies that the company is effectively utilizing its fixed assets to generate revenue, whereas a low ratio indicates inefficient asset utilization.

In contrast, the total asset turnover ratio has shown a more stable trend, with values ranging from 0.28 in March 2021 to 0.42 in December 2024. This ratio evaluates how efficiently the company generates sales from its total assets, including both fixed and current assets. A higher total asset turnover ratio suggests that the company is efficiently utilizing its assets to generate revenue.

Overall, the analysis of the long-term activity ratios for Hertz Global Holdings Inc indicates that the company has experienced fluctuations in its fixed asset turnover efficiency, while maintaining a relatively stable total asset turnover performance over the reported periods. Investors and stakeholders may interpret these ratios to assess the company's asset utilization efficiency and operational effectiveness.