Hawkins Inc (HWKN)

Short-term

Turnover ratios

Hawkins Inc's activity ratios provide insight into how efficiently the company manages its resources.

1. Inventory Turnover:
- The inventory turnover ratio shows how many times inventory is sold and replaced within a specific period.
- Hawkins Inc's inventory turnover has shown a fluctuating trend over the years, increasing from 7.41 in 2021 to 8.97 in 2025.
- A higher inventory turnover indicates better inventory management and liquidity.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently the company collects outstanding receivables.
- Hawkins Inc's receivables turnover has been relatively stable, with a slight increase from 6.59 in 2021 to 7.39 in 2025.
- A higher receivables turnover suggests effective credit policies and timely collection of accounts receivable.

3. Payables Turnover:
- The payables turnover ratio reveals how quickly the company pays its suppliers.
- Hawkins Inc's payables turnover has also been relatively consistent, ranging from 9.42 in 2022 to 14.34 in 2023.
- A higher payables turnover indicates that the company is managing its payables efficiently.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how effectively the company utilizes its working capital to generate sales.
- Hawkins Inc's working capital turnover has shown an increasing trend, from 6.45 in 2021 to 7.89 in 2025.
- A higher working capital turnover implies that the company is using its working capital efficiently to support its operations.

In conclusion, Hawkins Inc has generally demonstrated effective management of its inventory, receivables, payables, and working capital over the years, which indicates operational efficiency and prudent resource utilization.

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Average number of days

Hawkins Inc's activity ratios provide insights into how efficiently the company is managing its inventory, collecting its receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH): The trend in DOH indicates the number of days it takes for Hawkins Inc to convert its inventory into sales. The company's DOH has decreased from 55.20 days in 2022 to 40.70 days in 2025, suggesting that Hawkins Inc has been successful in managing its inventory levels more efficiently over the years.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for Hawkins Inc to collect payments from its customers. The company's DSO has also shown improvement, declining from 57.88 days in 2022 to 49.37 days in 2025. This indicates that Hawkins Inc has been more effective in collecting receivables, leading to faster cash inflows.

3. Number of Days of Payables: This ratio measures how long it takes for Hawkins Inc to pay its suppliers. The number of days of payables has remained relatively stable, ranging from 25.46 days in 2023 to 38.76 days in 2022. This suggests that the company has been maintaining a consistent approach towards managing its payment terms with suppliers.

Overall, the decreasing trends in both DOH and DSO ratios, along with the stable number of days of payables, indicate that Hawkins Inc has been enhancing its operational efficiency in managing inventory, collections, and payments, which could positively impact its working capital management and overall financial performance.

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Long-term

The data provided shows the long-term activity ratios of Hawkins Inc over a five-year period.

The fixed asset turnover ratio increased steadily from 3.82 in March 2021 to 5.03 in March 2023, indicating that the company became more efficient in generating sales revenue from its fixed assets during this period. However, the data is not available for the years 2024 and 2025, preventing a complete trend analysis.

In terms of total asset turnover, the ratio fluctuated over the five years. It increased from 1.26 in March 2021 to 1.58 in March 2023, signifying that the company was generating more revenue relative to its total assets. However, there was a slight dip to 1.40 in March 2024, followed by a further decline to 1.27 in March 2025. These fluctuations suggest varying levels of efficiency in utilizing its total assets to generate sales revenue.

Overall, the fixed asset turnover ratio showed a positive trend, indicating improved efficiency in utilizing fixed assets, while the total asset turnover ratio had a more varied pattern, suggesting fluctuations in the company's ability to generate revenue from its total asset base.