Lancaster Colony Corporation (LANC)

Activity ratios

Short-term

Turnover ratios

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 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Inventory turnover 9.67 10.60 10.80 9.64 10.65 10.74 11.76 9.64 10.88 9.04 9.07 8.46 10.62 11.92 11.01 10.71 13.68 12.16 12.81 12.24
Receivables turnover 19.59 18.26 18.64 15.48 15.85 13.95 13.86 12.55 12.37 14.61 14.92 13.93 14.98 14.33 15.61 13.88 15.41 15.26 17.31 14.51
Payables turnover 14.10 14.17 16.40 14.24 15.09 12.00 12.45 11.81 13.70 11.78 11.02 10.48 11.73 13.02 13.63 13.58 16.29 12.88 13.45 13.68
Working capital turnover 7.20 7.47 7.71 8.49 8.86 9.33 9.09 9.15 9.00 8.84 7.22 6.56 5.88 5.08 4.78 5.01 5.14 5.46 5.40 5.72

Lancaster Colony Corporation's activity ratios provide insights into the efficiency of the company's operations. The inventory turnover ratio has shown a fluctuating trend over the periods analyzed, ranging between 8.46 and 13.68. This indicates that the company is managing its inventory effectively, with a higher turnover generally being more favorable.

The receivables turnover ratio has also exhibited variability, ranging from 12.37 to 19.59. A higher turnover implies that the company is collecting its receivables more quickly, which is a positive sign of efficient credit management.

On the other hand, the payables turnover ratio has ranged from 10.48 to 16.40, reflecting the speed at which the company is paying its suppliers. A higher turnover suggests that the company is managing its payables efficiently.

The working capital turnover ratio has shown fluctuations between 4.78 and 9.33, reflecting how efficiently the company is utilizing its working capital to generate sales. A higher ratio indicates that the company is effectively using its working capital to support its operations and generate revenue.

Overall, Lancaster Colony Corporation's activity ratios demonstrate a mix of efficiency in managing inventory, receivables, and payables, with varying levels of effectiveness in utilizing working capital to drive sales over the periods analyzed.

Average number of days

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 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Days of inventory on hand (DOH) days 37.75 34.43 33.81 37.86 34.26 33.99 31.04 37.88 33.54 40.39 40.23 43.16 34.38 30.62 33.17 34.07 26.67 30.03 28.49 29.82
Days of sales outstanding (DSO) days 18.63 19.99 19.58 23.58 23.02 26.17 26.34 29.08 29.50 24.98 24.46 26.20 24.36 25.48 23.38 26.29 23.69 23.93 21.09 25.16
Number of days of payables days 25.89 25.76 22.25 25.62 24.19 30.41 29.32 30.90 26.65 30.98 33.13 34.82 31.13 28.03 26.78 26.88 22.40 28.33 27.13 26.68

Lancaster Colony Corporation's activity ratios reveal trends in how effectively the company manages its inventory, receivables, and payables.

Days of Inventory on Hand (DOH) have been relatively stable over the periods analyzed, fluctuating between 30 to 40 days. The lower the DOH, the more efficient the company is in managing its inventory levels. Lancaster Colony Corporation has maintained a reasonable level of inventory turnover, suggesting effective inventory management.

Days of Sales Outstanding (DSO) have shown some variability, ranging from about 18 to 30 days. A lower DSO indicates faster collection of receivables and efficient credit management. Despite fluctuations, Lancaster Colony Corporation has generally maintained a satisfactory DSO level, demonstrating effective credit and collection practices.

Number of Days of Payables indicates the average number of days it takes the company to pay its suppliers. Lancaster Colony Corporation's payables period has also fluctuated, ranging from about 22 to 35 days. A longer payables period can indicate more favorable payment terms with suppliers, providing the company with additional working capital. The company's payables period has shown some variability, but overall, it appears to be managing its payables effectively within a reasonable range.

In conclusion, Lancaster Colony Corporation has demonstrated effective management of its inventory, receivables, and payables based on the analysis of its activity ratios over the periods provided.

Long-term

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 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Fixed asset turnover 3.92 3.87 3.81 3.80 3.78 3.75 3.66 3.65 3.71 3.67 3.71 3.85 4.02 4.25 4.34 4.50 4.55 4.51 4.58 4.73
Total asset turnover 1.55 1.60 1.63 1.64 1.64 1.57 1.55 1.51 1.54 1.46 1.40 1.35 1.33 1.31 1.30 1.31 1.34 1.35 1.36 1.38

Lancaster Colony Corporation's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insight into how efficiently the company is utilizing its assets to generate sales revenue.

The fixed asset turnover ratio has shown a generally decreasing trend over the periods analyzed, with a range of 3.66 to 4.73. This indicates that the company is generating fewer sales revenue for each dollar invested in fixed assets over time. A high fixed asset turnover ratio is generally preferred as it signifies efficient utilization of fixed assets to generate sales.

On the other hand, the total asset turnover ratio has displayed some fluctuations but is relatively stable, ranging from 1.30 to 1.64. This ratio indicates how effectively the company is using all its assets to generate sales. A higher total asset turnover ratio suggests efficient utilization of both fixed and current assets to generate sales revenue.

Overall, while the total asset turnover ratio of Lancaster Colony Corporation appears relatively stable, the decreasing trend in the fixed asset turnover ratio may imply a potential inefficiency in generating sales revenue from its fixed assets. It would be advisable for the company to assess its fixed asset management strategies to improve efficiency and profitability in the long term.