Jack In The Box Inc (JACK)

Short-term

Turnover ratios

The inventory turnover ratio for Jack In The Box Inc has shown a decreasing trend over the past 5 years, from 191.77 in 2020 to 187.29 in 2024. This indicates that the company is selling its inventory less frequently in recent years.

The receivables turnover ratio has generally been increasing, from 13.03 in 2020 to 18.80 in 2024. This suggests that the company is collecting its receivables more efficiently over time.

The payables turnover ratio has fluctuated over the years but has not shown a clear trend. It was 11.15 in 2020 and increased to 13.02 in 2021 before decreasing to 10.57 in 2024.

Unfortunately, the data for the working capital turnover ratio is missing for all years, making it impossible to analyze how effectively the company is utilizing its working capital to generate sales.

Overall, these activity ratios provide insights into how efficiently Jack In The Box Inc is managing its inventory, receivables, and payables turnover processes.

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Average number of days

Activity ratios provide insights into how efficiently a company manages its resources in generating sales and collecting payments.

1. Days of Inventory on Hand (DOH):
DOH represents the average number of days the company holds inventory before it is sold. Jack In The Box Inc's DOH has fluctuated over the past five years, ranging from 1.63 days to 2.64 days. The lower the DOH, the better, indicating efficient inventory management. In 2024, the DOH increased to 1.95 days from 1.63 days in 2023, potentially indicating slower inventory turnover.

2. Days of Sales Outstanding (DSO):
DSO measures the average number of days it takes for the company to collect revenue after a sale is made. Jack In The Box Inc's DSO has decreased over the years, from 28.02 days in 2020 to 19.41 days in 2024. A lower DSO suggests efficient credit management and prompt collection of receivables, which is positive for cash flow and liquidity.

3. Number of Days of Payables:
This ratio indicates how many days on average the company takes to pay its suppliers. Jack In The Box Inc's number of days of payables has fluctuated but generally remained within a range of around 28 to 35 days. A higher number of days of payables may indicate that the company is taking longer to pay its vendors, potentially improving cash flow but could strain relationships with suppliers if prolonged.

Overall, the trend in Jack In The Box Inc's activity ratios shows improvements in managing inventory levels, prompt collection of receivables, and relatively consistent payment practices to suppliers. Monitoring these ratios over time can help assess the company's operational efficiency and financial health.

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Long-term

Jack In The Box Inc's long-term activity ratios reflect the efficiency of the company in utilizing its assets to generate sales. The fixed asset turnover ratio has fluctuated over the past five years, ranging from 3.04 to 4.11. This ratio indicates that the company generated $3.65 to $4.11 in sales for every dollar invested in fixed assets. A higher fixed asset turnover ratio suggests the company is efficiently using its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also varied, with values ranging from 0.50 to 0.65. This ratio indicates that the company generated sales amounting to 50% to 65% of its total assets. A higher total asset turnover ratio generally suggests better asset utilization efficiency.

Overall, the fluctuation in both ratios over the years indicates changes in how effectively Jack In The Box Inc is generating revenue relative to its assets. It is important for the company to analyze the drivers behind these changes to ensure optimal asset utilization and operational efficiency going forward.