Kelly Services A Inc (KELYA)
Activity ratios
Short-term
Turnover ratios
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 12.44 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 206.94 | — | — | — |
| Receivables turnover | 4.17 | 2.78 | 2.75 | — | 0.96 | — | — | — | 3.45 | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 7.97 | 6.82 | 6.82 | 4.64 | 2.44 | 4.13 | 4.25 | 5.88 | 9.94 | 10.64 | 10.41 | 7.05 | 7.24 | 7.27 | 8.27 | 10.01 | 10.27 | 11.66 | 11.93 | 12.95 |
Based on the activity ratios provided for Kelly Services, Inc., the following analysis can be made:
1. Receivables Turnover: The receivables turnover ratio reflects how efficiently the company is managing its accounts receivable. A higher receivables turnover indicates that Kelly Services, Inc. is collecting its receivables more frequently during the year. The trend shows a consistent level of around 3.4 to 4.2 times per year, which is a positive sign of effective management of receivables.
2. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company is generating revenue relative to its working capital. A higher ratio indicates that Kelly Services, Inc. is effectively utilizing its working capital to generate sales. The company has maintained a stable working capital turnover ratio in the range of 7.94 to 8.70, suggesting efficient utilization of resources to drive revenue generation.
3. Inventory Turnover and Payables Turnover: Unfortunately, the data does not provide information on the inventory turnover and payables turnover ratios for Kelly Services, Inc. These ratios are important for assessing how well the company manages its inventory levels and pays its suppliers. More data or information on these ratios would be needed to conduct a comprehensive analysis of the company's inventory and accounts payable management.
Overall, based on the available data, Kelly Services, Inc. appears to be managing its receivables efficiently and effectively utilizing its working capital to generate revenue. Additional data on inventory turnover and payables turnover would further enhance the analysis of the company's operational efficiency.
Average number of days
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 29.35 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 1.76 | — | — | — |
| Days of sales outstanding (DSO) | days | 87.61 | 131.21 | 132.84 | — | 379.85 | — | — | — | 105.88 | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
From the activity ratios provided for Kelly Services, Inc., we can see fluctuations in the efficiency of managing inventory and collecting receivables over the past eight quarters.
The Days of Inventory on Hand (DOH) ratio is not available for any of the quarters, indicating that the company may not track this metric or it may be negligible.
The Days of Sales Outstanding (DSO) ratio, on the other hand, shows a general decreasing trend from Q1 2022 to Q4 2023. This suggests that the company has been more efficient in collecting payments from customers over time, with a significant decrease in the number of days outstanding.
The number of days of payables is not provided for any quarter, so it is not possible to analyze the efficiency of managing payables based on this data.
Overall, the improving trend in the Days of Sales Outstanding ratio indicates that Kelly Services, Inc. has been effectively managing their accounts receivable and improving their cash conversion cycle over the quarters analyzed. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's performance in this area.
Long-term
| 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 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 196.57 | 134.08 | 135.82 | 94.43 | 51.56 | 97.27 | 96.44 | 115.69 | 138.99 | 135.66 | 125.72 | 114.62 | 110.15 | 113.08 | 116.44 | 137.42 | 124.26 | 65.69 | 66.03 | 35.54 |
| Total asset turnover | 1.87 | 1.51 | 1.51 | 1.04 | 0.54 | 0.90 | 0.90 | 1.33 | 1.70 | 1.75 | 1.73 | 1.71 | 1.76 | 1.93 | 2.09 | 2.31 | 2.16 | 2.19 | 2.17 | 2.24 |
The long-term activity ratios of Kelly Services, Inc. show the efficiency with which the company utilizes its fixed assets and total assets to generate revenue.
The fixed asset turnover ratio has shown a fluctuating trend over the past eight quarters, with values ranging from 156.26 to 200.08. This ratio peaked in Q3 2022 at 200.08 and decreased in subsequent quarters. The higher fixed asset turnover ratios indicate that Kelly Services is effectively using its fixed assets to generate sales. In contrast, the lower ratios suggest a potential inefficiency in utilizing fixed assets for revenue generation.
On the other hand, the total asset turnover ratio has been relatively stable over the same period, fluctuating between 1.80 and 1.91. This ratio measures the company's ability to generate sales from its total assets. Generally, a higher total asset turnover indicates better efficiency in asset utilization, while a lower ratio may suggest underutilization or inefficiency in asset management.
Overall, Kelly Services, Inc. has shown varying levels of efficiency in utilizing both fixed assets and total assets to generate revenue. It is essential for the company to monitor these ratios consistently to ensure optimal utilization of its assets for sustainable growth and profitability.