Manhattan Associates Inc (MANH)

Short-term

Turnover ratios

Inventory Turnover: Manhattan Associates Inc's inventory turnover ratio was not provided for the years 2020 to 2024, indicating that the company did not have specific data available to calculate this ratio. A higher inventory turnover ratio is generally preferred as it indicates that the company is efficiently managing its inventory levels.

Receivables Turnover: The receivables turnover ratio for Manhattan Associates Inc ranged from 4.60 to 5.27 over the period from 2020 to 2024. This ratio shows how many times the company collects its accounts receivable during a given period. A higher turnover ratio is generally favorable, as it indicates that the company efficiently collects payments from its customers.

Payables Turnover: Manhattan Associates Inc's payables turnover ratio ranged from 19.55 to 24.16 during the period from 2020 to 2024. This ratio indicates how quickly the company pays its suppliers. A higher turnover ratio suggests that the company is effectively managing its payables and may have good relationships with its suppliers.

Working Capital Turnover: The working capital turnover ratio for Manhattan Associates Inc increased from 4.17 in 2021 to 10.19 in 2024. This ratio measures how effectively the company is utilizing its working capital to generate sales. A higher ratio indicates efficient utilization of working capital. The increasing trend in this ratio suggests that the company is becoming more efficient in generating revenue with its available working capital.

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Average number of days

Manhattan Associates Inc's activity ratios show the efficiency of its operations regarding inventory management, accounts receivable collection, and accounts payable settlement.

1. Days of Inventory on Hand (DOH): The data indicates that no specific details on the days of inventory on hand were provided for any of the years from 2020 to 2024. This lack of information makes it challenging to assess Manhattan Associates Inc's efficiency in managing its inventory levels.

2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding increased from 69.24 days in 2020 to 79.43 days in 2022 but decreased to 73.31 days by the end of 2024. This shows a prolonged period of time taken to collect accounts receivable in 2022, although an improvement was seen by 2024. Efforts may be needed to expedite the collection process in the future.

3. Number of Days of Payables: The Number of Days of Payables remained relatively consistent over the years, ranging from 15.11 to 18.67 days. This indicates that Manhattan Associates Inc generally takes around two weeks to less than a month to settle its accounts payable obligations.

In summary, Manhattan Associates Inc should focus on optimizing inventory levels, streamlining accounts receivable collection processes, and maintaining efficient accounts payable management to enhance its overall working capital management and operational efficiency.

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Long-term

Manhattan Associates Inc's fixed asset turnover has shown a positive trend over the years, increasing from 32.71 in 2020 to 75.08 in 2024. This indicates that the company has been able to generate significantly more revenue relative to its fixed assets, reflecting operational efficiency and effective utilization of fixed assets to generate sales.

In contrast, the total asset turnover has been relatively stable, fluctuating around the range of 1.23 to 1.39 over the same period. This ratio measures the company's ability to generate sales from its total assets, including both fixed and current assets. While the total asset turnover has not shown significant improvement, it still indicates that Manhattan Associates Inc has been effectively utilizing its total assets to generate revenue, although the growth has been more moderate compared to the fixed asset turnover.

Overall, the increasing trend in fixed asset turnover suggests that Manhattan Associates Inc has been successful in efficiently utilizing its fixed assets to drive revenue growth, which is a positive indicator of the company's operational performance and asset management efficiency.