Matson Inc (MATX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 11.03 | 16.11 | 11.36 | 9.29 | 10.60 |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 77.04 | 24.31 | 42.38 | — | — |
Based on the data provided for Matson Inc's activity ratios, we can draw several insights:
1. Receivables Turnover:
- The trend in receivables turnover shows a decline from 2019 to 2023, indicating that Matson Inc took longer to collect its accounts receivable over the years.
- A higher receivables turnover ratio is generally favorable as it suggests faster collection of payments from customers. However, the decreasing trend might imply a potential issue with the company's credit policies or the creditworthiness of customers.
2. Payables Turnover:
- The data indicates that Matson Inc did not report any payables turnover for the years 2021, 2022, and 2023. This could be due to a lack of accounts payable during these periods or insufficient information provided.
- In contrast, the payables turnover for 2020 and 2019 points to a decreasing trend, suggesting that the company took longer to pay its suppliers in those years.
3. Working Capital Turnover:
- The working capital turnover ratio improved significantly from 2019 to 2023, indicating that Matson Inc generated more revenue for each dollar of working capital invested in the business.
- A higher working capital turnover ratio generally reflects efficient utilization of working capital to support sales activities, which can lead to improved profitability.
Overall, the analysis of Matson Inc's activity ratios suggests areas that may require further examination, such as collections from customers, payments to suppliers, and the management of working capital. The company should evaluate its credit and payment policies to enhance operational efficiency and support sustainable growth in the future.
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 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 33.09 | 22.65 | 32.14 | 39.31 | 34.44 |
| Number of days of payables | days | — | — | — | — | — |
Days of inventory on hand (DOH) is not provided in the table for Matson Inc for the years 2019 to 2023, making it difficult to assess the efficiency of the company in managing its inventory.
Days of sales outstanding (DSO) decreased from 38.85 days in 2020 to 47.72 days in 2023. This indicates that Matson Inc took longer to collect its accounts receivable in 2023 compared to 2020, which may suggest a slower account receivable turnover and potentially a less efficient credit management process.
The number of days of payables is not available for the years 2019 to 2021, but it increased from 45.81 days in 2019 to 54.26 days in 2020. This increase indicates that Matson Inc took longer to pay its suppliers in 2020, which may imply a stretching of payment terms or possibly cash flow constraints.
Overall, based on the activity ratios provided, Matson Inc's efficiency in managing inventory, collecting receivables, and paying suppliers shows mixed results over the years, with potential room for improvement in certain areas such as reducing DSO and managing payables effectively.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.47 | 2.20 | 2.08 | 1.39 | 1.37 |
| Total asset turnover | 0.72 | 1.00 | 1.06 | 0.81 | 0.77 |
Long-term activity ratios for Matson Inc, as reflected by the fixed asset turnover and total asset turnover ratios, provide insights into the efficiency of the company's utilization of its fixed and total assets in generating sales revenue.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how efficiently the company utilizes its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets.
- Matson Inc's fixed asset turnover has shown fluctuations over the years, ranging from 1.38 in 2019 to 2.21 in 2022. This suggests variations in the company's ability to generate sales using its fixed assets efficiently.
- The downward trend observed from 2022 to 2023 (2.21 to 1.48) may raise concerns about potentially declining efficiency in utilizing fixed assets to generate revenue.
2. Total Asset Turnover:
- The total asset turnover ratio assesses the company's overall efficiency in generating sales revenue from all assets, including fixed and current assets.
- Matson Inc's total asset turnover ratios have also varied over the years, ranging from 0.72 in 2023 to 1.06 in 2021. This illustrates the company's ability to efficiently utilize its total assets in revenue generation.
- The decline in the total asset turnover ratio from 2021 to 2023 may suggest a lower efficiency in utilizing total assets to generate sales revenue.
Overall, assessing both fixed asset turnover and total asset turnover ratios provides a comprehensive view of Matson Inc's long-term asset utilization efficiency. The fluctuations in these ratios highlight the importance of monitoring the company's effectiveness in generating revenue relative to its asset base. Further analysis and comparison with industry benchmarks may help in evaluating the company's long-term asset management performance.