Haverty Furniture Companies Inc (HVT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 8.46 | 7.85 | 7.98 | 7.86 | 7.42 |
| Receivables turnover | — | — | — | — | 526.25 |
| Payables turnover | 42.32 | 39.81 | 28.64 | 22.48 | 27.94 |
| Working capital turnover | 7.66 | 8.61 | 10.27 | 6.98 | 10.37 |
The activity ratios of Haverty Furniture Companies Inc provide insight into the efficiency of the company's operations in managing its assets and liabilities.
1. Inventory Turnover:
Haverty Furniture's inventory turnover has been relatively stable over the given years, ranging from 7.42 to 8.46 times. This indicates that the company is efficient in selling its inventory and replenishing it with new stock. A higher turnover ratio suggests that the company is managing its inventory effectively.
2. Receivables Turnover:
Unfortunately, data for the receivables turnover is not provided for the years mentioned. This ratio would have indicated how quickly the company collects its accounts receivable from customers. Higher turnover would imply efficient management of credit sales and collection processes.
3. Payables Turnover:
Haverty Furniture's payables turnover has shown an increasing trend from 22.48 to 42.32 times over the years. This indicates that the company is taking longer to pay its suppliers, which may suggest better cash management and potentially improved supplier relationships.
4. Working Capital Turnover:
The working capital turnover ratio has fluctuated over the years, ranging from 6.98 to 10.37 times. A higher turnover ratio implies that the company is generating more revenue per dollar of working capital invested. This ratio reflects the company's efficiency in utilizing its working capital to generate sales.
In conclusion, Haverty Furniture Companies Inc has demonstrated efficiency in managing its inventory and working capital, while also improving its payables turnover over the years. However, more data on receivables turnover would have provided a more complete picture of the company's overall efficiency in managing its operating cycle.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 43.15 | 46.48 | 45.72 | 46.45 | 49.20 |
| Days of sales outstanding (DSO) | days | — | — | — | — | 0.69 |
| Number of days of payables | days | 8.62 | 9.17 | 12.75 | 16.24 | 13.06 |
The activity ratios of Haverty Furniture Companies Inc reflect how efficiently the company manages its inventory, receivables, and payables.
The Days of Inventory on Hand (DOH) has been decreasing over the past five years, indicating that the company is managing its inventory more efficiently. A lower DOH implies that inventory turnover is higher, which is generally preferable as it reduces the risk of obsolete or overstocked inventory.
The Days of Sales Outstanding (DSO) data is missing for the recent years, which makes it challenging to assess the efficiency of the company in collecting its receivables. However, having a lower DSO is typically favorable as it indicates quicker collection of outstanding payments from customers.
The Number of Days of Payables shows a decreasing trend over the years, indicating that the company is taking longer to pay its suppliers. This strategy can help improve cash flow management, as the company retains funds for a longer period before settling its payables.
Overall, the trend in the activity ratios of Haverty Furniture Companies Inc suggests improvements in inventory management and potential enhancements in cash flow management through a lengthening of payment periods.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.06 | 7.63 | 8.03 | 7.23 | 5.13 |
| Total asset turnover | 1.33 | 1.62 | 1.48 | 1.15 | 1.43 |
Haverty Furniture Companies Inc's long-term activity ratios exhibit some fluctuations over the past five years. The fixed asset turnover ratio, which measures how efficiently the company utilizes its fixed assets to generate sales, saw a decreasing trend from 2019 to 2021, followed by an increase in 2022 and 2023. This indicates that the company has been able to generate more revenue from its fixed assets in the last two years compared to the years prior.
On the other hand, the total asset turnover ratio, which shows how efficiently the company uses all its assets to generate revenue, fluctuated during the same period. It peaked in 2022 before slightly decreasing in 2023. Overall, the total asset turnover ratio has shown a mixed trend over the years.
Both ratios are important in evaluating a company's operational efficiency and asset utilization. The increasing fixed asset turnover ratio suggests that Haverty Furniture Companies Inc has been more effective in utilizing its fixed assets to generate sales, while the fluctuating total asset turnover ratio indicates varying levels of efficiency in using all assets to generate revenue. Further analysis of the company's operations and industry dynamics could provide more insights into these movements.