Kelly Services A Inc (KELYA)

Short-term

Turnover ratios

Based on the provided data for Kelly Services A Inc, let's analyze the activity ratios:

1. Inventory Turnover:
- Unfortunately, there is no data available for the inventory turnover ratio for any of the periods provided. This may indicate that information on how efficiently the company is managing its inventory is not disclosed or not calculable based on the available data.

2. Receivables Turnover:
- The receivables turnover ratio shows how many times a company collects its accounts receivable during a specific period. From the data provided, we see that the receivables turnover ratio fluctuates over time.
- There was a significant increase in the ratio from December 31, 2022, to March 31, 2024. This may indicate that Kelly Services A Inc improved its collection efficiency during this period, collecting its receivables more frequently.

3. Payables Turnover:
- Unfortunately, there is no data available for the payables turnover ratio for any of the periods provided. This makes it challenging to evaluate how quickly the company is paying its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. A higher ratio indicates better utilization of working capital.
- The data shows a decreasing trend in the working capital turnover ratio from March 31, 2020, to December 31, 2022, suggesting a decline in the efficiency of working capital utilization during this period.
- However, there is an improvement in the ratio from December 31, 2022, to December 31, 2024. This indicates that Kelly Services A Inc was able to enhance its working capital efficiency in generating sales revenue during this later period.

In conclusion, while there are limitations due to missing data for certain ratios, the analysis of the available activity ratios suggests fluctuations and trends in the efficiency of managing receivables and working capital for Kelly Services A Inc over the periods provided.

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Average number of days

Based on the data provided, Kelly Services A Inc's activity ratios can be evaluated as follows:

1. Days of Sales Outstanding (DSO):
- The DSO measures how long it takes for the company to collect its accounts receivable.
- In December 2021, the DSO was 105.88 days, indicating that on average, it took the company this many days to collect its outstanding sales.
- The DSO increased significantly to 379.85 days in December 2022, suggesting a potential issue with the company's credit and collection policies.
- Subsequently, the DSO decreased to 87.63 days by December 2023 before increasing slightly to 105.65 days by December 2024.
- Overall, the company needs to monitor and potentially improve its accounts receivable collection efficiency to maintain healthy cash flows.

2. Number of Days of Payables:
- The information for the number of days of payables is not available in the data provided.
- Days of payables measures how long it takes for a company to pay its suppliers.
- Without this data, it is challenging to assess the company's efficiency in managing its payables.

3. Days of Inventory on Hand (DOH):
- The data for the DOH is not available in the provided dataset.
- DOH metric measures how long it takes for the company to sell its inventory.
- Without this information, it is difficult to evaluate the efficiency of the company in managing its inventory levels.

In conclusion, based on the available data, Kelly Services A Inc should focus on improving its accounts receivable collection process to reduce the DSO, which can positively impact its cash flow and overall financial health. Additionally, managing payables efficiently and monitoring inventory levels are also critical components of the company's working capital management.

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Long-term

Kelly Services A Inc's long-term activity ratios show a fluctuating trend over the years.

- The Fixed Asset Turnover ratio decreased from a high of 196.50 in December 2023 to a low of 51.56 in December 2022, indicating a significant decline in the efficiency of utilizing fixed assets to generate revenue during this period. However, there was a gradual recovery in the ratio from 2023 onwards, reaching 168.12 by December 2024.

- The Total Asset Turnover ratio decreased from 2.31 in March 2020 to 0.54 in December 2022, reflecting a downward trend in the efficiency of using total assets to generate sales. Subsequently, there was an improvement in the ratio, reaching 1.65 by December 2024.

Overall, both ratios show varying levels of efficiency in asset utilization over the years, with improvements seen in later periods after a period of decline. It is important for Kelly Services A Inc to continue monitoring and managing their asset turnover ratios to maximize efficiency and profitability.