Hawkins Inc (HWKN)

Activity ratios

Short-term

Turnover ratios

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 8.97 8.98 8.85 8.84 9.73 10.76 11.05 10.00 8.67 7.52 6.50 6.53 6.61 7.51 7.59 7.41 7.41 6.99 6.90 6.83
Receivables turnover 7.39 8.54 8.11 7.31 8.03 8.18 7.49 6.79 7.23 7.41 6.83 6.05 6.31 6.95 7.44 6.98 6.59 7.28 7.30 7.72
Payables turnover 12.24 18.38 14.16 15.01 12.87 17.28 12.37 13.84 14.34 15.11 12.06 12.16 9.42 13.01 12.42 13.22 12.68 14.49 13.33 13.93
Working capital turnover 7.89 7.55 7.95 7.45 9.24 8.01 8.29 7.11 6.62 5.99 5.59 5.08 6.13 5.33 6.83 6.27 6.45 5.87 6.49 6.40

The activity ratios of Hawkins Inc provide insight into the management of its inventory, receivables, payables, and working capital. Let's analyze each ratio:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory.
- The ratio has generally shown an increasing trend from 6.83 on June 30, 2020, to 8.97 on March 31, 2025.
- A higher inventory turnover indicates that the company is selling its inventory quickly, which is positive for cash flow and profitability.

2. Receivables Turnover:
- The receivables turnover ratio reflects how quickly the company collects outstanding payments from customers.
- The ratio fluctuated across the period, with a peak of 8.54 on December 31, 2024.
- A higher receivables turnover implies that the company efficiently manages its credit sales and collects receivables promptly.

3. Payables Turnover:
- The payables turnover ratio shows how quickly the company pays its suppliers for goods and services.
- The ratio varied over time, with a high of 18.38 on December 31, 2024.
- A lower payables turnover ratio could indicate that the company is taking longer to pay its suppliers, possibly indicating cash flow constraints.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales.
- The ratio increased from 6.40 on June 30, 2020, to 7.89 on March 31, 2025.
- A higher working capital turnover signifies effective utilization of resources to drive sales and revenue growth.

Overall, by analyzing these activity ratios, we can assess Hawkins Inc's operational efficiency, liquidity management, and effectiveness in utilizing its resources to drive sales and profitability.

Average number of days

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 40.70 40.63 41.25 41.30 37.53 33.92 33.02 36.50 42.08 48.52 56.19 55.90 55.20 48.60 48.06 49.28 49.27 52.25 52.92 53.44
Days of sales outstanding (DSO) days 49.37 42.75 45.01 49.93 45.46 44.63 48.72 53.74 50.45 49.25 53.42 60.31 57.88 52.53 49.03 52.28 55.41 50.12 50.00 47.29
Number of days of payables days 29.83 19.86 25.77 24.31 28.37 21.13 29.50 26.38 25.46 24.15 30.26 30.02 38.76 28.06 29.38 27.60 28.79 25.18 27.39 26.19

Hawkins Inc's activity ratios provide insight into how efficiently the company is managing its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how long, on average, inventory is held before being sold.
- Hawkins Inc's DOH has fluctuated over the years, ranging from a high of 56.19 days to a low of 33.02 days.
- A decreasing trend in DOH indicates a more efficient inventory management, as the company is selling inventory faster.

2. Days of Sales Outstanding (DSO):
- DSO reflects the average number of days it takes for the company to collect revenue after a sale is made.
- Hawkins Inc's DSO has varied between 42.75 days and 60.31 days.
- A lower DSO implies faster collections and better cash flow management.

3. Number of Days of Payables:
- This ratio indicates how long the company takes to pay its suppliers.
- Hawkins Inc's payables days have ranged from 19.86 days to 38.76 days.
- A longer period of payables suggests the company takes more time to pay its creditors, potentially indicating better cash flow management or leverage.

Overall, monitoring these activity ratios can help stakeholders evaluate Hawkins Inc's efficiency in managing its working capital and operating cycle. A decreasing trend in DOH and DSO, along with stable payables days, may indicate improved operational effectiveness and financial health.

Long-term

Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover — — — — — — — 4.93 5.03 5.21 5.25 5.05 4.79 4.51 4.35 4.13 3.82 4.08 4.27 4.22
Total asset turnover 1.27 1.35 1.35 1.31 1.37 1.44 1.63 1.59 1.58 1.57 1.50 1.41 1.37 1.37 1.40 1.34 1.26 1.27 1.29 1.34

The Fixed Asset Turnover ratio for Hawkins Inc has been gradually increasing over the past few years, indicating that the company has been generating more sales revenue relative to its investment in fixed assets. This suggests that Hawkins Inc is becoming more efficient in utilizing its fixed assets to generate sales.

On the other hand, the Total Asset Turnover ratio has shown some fluctuations over the same period. While initially fluctuating, the ratio has generally increased, which could imply that the company is using its total assets more effectively to generate revenue.

Overall, the trend in both Fixed Asset Turnover and Total Asset Turnover ratios suggests that Hawkins Inc has improved its asset utilization efficiency over time, which may positively impact the company's profitability and overall financial performance.