Jack In The Box Inc (JACK)

Short-term

Turnover ratios

Jack In The Box Inc's activity ratios reflect the efficiency of the company in managing its operations and resources.

1. Inventory turnover: The inventory turnover ratio has been consistently high, indicating that Jack In The Box Inc is efficiently managing its inventory levels and quickly converting inventory into sales. This signifies effective inventory control and strong sales performance.

2. Receivables turnover: The receivables turnover ratio has fluctuated over the periods but generally shows that the company efficiently collects outstanding receivables. A higher ratio indicates that Jack In The Box Inc is effectively managing its credit policies and collecting payments from customers in a timely manner.

3. Payables turnover: The payables turnover ratio has also varied, but overall, it reflects that the company is efficiently managing its payables by paying suppliers promptly. A higher turnover ratio suggests that Jack In The Box Inc is effectively utilizing trade credit and managing its cash flow effectively.

4. Working capital turnover: The table does not provide data for working capital turnover. However, a high working capital turnover ratio would indicate that Jack In The Box Inc is efficiently using its working capital to generate sales revenue. This ratio would provide insights into how effectively the company is utilizing its current assets to support its operations.

Overall, the activity ratios suggest that Jack In The Box Inc is proficient in managing its resources, controlling inventory levels, collecting receivables, and managing payables effectively, which are all crucial aspects of maintaining a healthy operational performance.

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Average number of days

Days of inventory on hand (DOH) measure how efficiently a company manages its inventory. In the most recent period of September 30, 2024, Jack In The Box Inc had 1.95 days of inventory on hand, indicating a slight improvement compared to the previous period. The trend over the past few quarters shows a decreasing trend, suggesting better inventory management.

Days of sales outstanding (DSO) reflect how quickly the company collects its accounts receivable. As of September 30, 2024, Jack In The Box Inc had 19.41 days of sales outstanding, which is lower compared to the previous quarter, indicating a faster collection of receivables. The trend in DSO has been fluctuating over the past few periods, indicating potential variability in the company's credit policies or customer payment behaviors.

Number of days of payables shows how long a company takes to pay its suppliers. As of September 30, 2024, Jack In The Box Inc had 34.52 days of payables, reflecting an increase from the previous quarter. The trend in payables days has been fluctuating, with periods of both increases and decreases. A higher number of days of payables may indicate a more favorable position for the company in terms of managing its working capital.

Overall, the activity ratios of Jack In The Box Inc suggest improvements in inventory management and faster collection of receivables in the most recent period. However, the fluctuating trends in these ratios indicate some variability in the company's operations and cash flow management.

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Long-term

The fixed asset turnover ratio for Jack In The Box Inc has shown a generally declining trend from September 2020 to September 2024. This ratio measures the efficiency of the company in generating revenue from its fixed assets. The decreasing trend indicates that the company is generating less revenue for every dollar invested in fixed assets over the years.

On the other hand, the total asset turnover ratio has shown fluctuations but with no clear trend over the same period. This ratio measures the efficiency of the company in generating revenue from all its assets. The variations in this ratio could be due to changes in the company's asset base or its revenue generation strategies.

Overall, the fixed asset turnover and total asset turnover ratios are important indicators of operational efficiency and asset utilization for Jack In The Box Inc. The company may need to assess its asset management strategies and operational efficiency to improve these ratios and enhance overall performance.