Manhattan Associates Inc (MANH)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 28.59 | — | — | — | — |
| Receivables turnover | 5.11 | 4.60 | 5.23 | 5.27 | 6.06 |
| Payables turnover | 24.16 | 19.55 | 22.00 | 21.79 | 20.16 |
| Working capital turnover | 8.23 | 7.71 | 4.17 | 4.27 | 12.29 |
Inventory turnover is not provided in the data, which could limit the analysis of Manhattan Associates, Inc.'s efficiency in managing inventory.
The receivables turnover ratio has been relatively stable over the past five years, ranging from 4.58 to 6.04. This indicates that the company is efficient in collecting receivables, with an average of approximately 5.44 times a year.
The payables turnover ratio has been increasing over the years, reaching 17.57 in 2023 from 13.86 in 2019. A higher payables turnover ratio suggests that Manhattan Associates, Inc. is taking longer to pay its suppliers, which could indicate improved liquidity or negotiation power with suppliers.
The working capital turnover ratio has fluctuated over the years but remains above 4, indicating that the company is generating a significant amount of revenue relative to its working capital. However, the significant decrease in 2021 may warrant further investigation into the company's operational efficiency.
Overall, while the company demonstrates efficiency in collecting receivables and managing payables, further analysis of inventory turnover and the working capital turnover ratio is recommended to provide a more comprehensive assessment of Manhattan Associates, Inc.'s operational performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 12.77 | — | — | — | — |
| Days of sales outstanding (DSO) | days | 71.44 | 79.43 | 69.80 | 69.24 | 60.23 |
| Number of days of payables | days | 15.11 | 18.67 | 16.59 | 16.75 | 18.11 |
Days of Inventory on Hand (DOH) for Manhattan Associates, Inc. are not provided in the table, which indicates a lack of specific data on the company's inventory turnover efficiency.
The Days of Sales Outstanding (DSO) have shown fluctuation over the past five years. In 2023, the DSO decreased to 71.74 days from 79.66 days in 2022. This indicates that Manhattan Associates is collecting its accounts receivable more efficiently in 2023 compared to the previous year. However, the DSO is still higher than in 2019, when it was 60.41 days. This suggests that there may be room for further improvement in managing receivables.
The Number of Days of Payables for Manhattan Associates has also varied over the years. In 2023, the company took 20.77 days to pay its payables, showing an improvement from 26.19 days in 2022. This indicates that Manhattan Associates has been managing its payables more effectively in 2023. Compared to 2019 when it took 26.34 days to pay its payables, the company has shown a notable improvement.
Overall, Manhattan Associates seems to have made improvements in managing both its receivables and payables turnover in 2023 compared to the previous year. Efficient management of these activities can have a positive impact on the company's working capital and cash flow management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 79.08 | 60.09 | 47.82 | 32.71 | 27.27 |
| Total asset turnover | 1.39 | 1.35 | 1.23 | 1.26 | 1.66 |
The long-term activity ratios of Manhattan Associates, Inc. provide insight into the efficiency of the company's utilization of its fixed assets and total assets over the years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively a company generates revenue from its investment in fixed assets. Manhattan Associates has shown a consistent improvement in this ratio from 2019 to 2023, increasing from 27.19 to 78.74.
- This indicates that the company has been able to generate significantly higher revenue from its fixed assets in recent years, showcasing improved efficiency in utilizing its property, plants, and equipment to drive sales.
2. Total Asset Turnover:
- The total asset turnover ratio measures how efficiently a company utilizes its total assets to generate sales. Manhattan Associates' total asset turnover has fluctuated over the years, with a slight decline from 1.66 in 2019 to 1.38 in 2023.
- Although the ratio has decreased, Manhattan Associates remains effective in generating revenue relative to its total asset base.
Overall, Manhattan Associates has demonstrated notable improvements in its fixed asset turnover, indicating enhanced operational efficiency in leveraging its fixed assets to generate revenue. Despite fluctuations in the total asset turnover ratio, the company continues to effectively utilize its total assets to drive sales, reflecting steady performance in asset utilization over the years.