Matson Inc (MATX)

Short-term

Turnover ratios

Matson Inc's activity ratios provide insights into how efficiently the company manages its assets and operations. Let's analyze the activity ratios based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a specific period. Matson Inc's inventory turnover was not available for most periods, but as of December 31, 2023, and March 31, 2024, the ratios were 109.81 and 95.59, respectively. These high values indicate that Matson Inc efficiently manages its inventory.

2. Receivables Turnover:
- The receivables turnover ratio shows how many times a company collects its accounts receivable during a period. Unfortunately, data for Matson Inc's receivables turnover were not available for the periods provided, implying that an analysis of its receivables management efficiency cannot be made.

3. Payables Turnover:
- Payables turnover ratio indicates how quickly a company pays its suppliers. Similar to receivables turnover, data for Matson Inc's payables turnover were not available for the periods provided, limiting the assessment of the company's payables management efficiency.

4. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company uses its working capital to generate sales. Matson Inc improved its working capital turnover from 42.62 in December 2021 to 69.55 in December 2024. The increasing trend suggests that the company has enhanced its ability to generate sales using its working capital more effectively.

In conclusion, based on the available data, Matson Inc appears to effectively manage its inventory and improve its working capital turnover over time. However, a more comprehensive analysis would require data on receivables and payables turnover to provide a complete picture of the company's activity ratios.

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Average number of days

Matson Inc's activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying suppliers.

1. Days of Inventory on Hand (DOH):
Matson Inc's DOH has shown a positive trend, decreasing from 3.82 days as of March 31, 2024, to 3.32 days as of December 31, 2023. This indicates that the company is maintaining a relatively low level of inventory and efficiently turning over its inventory into sales.

2. Days of Sales Outstanding (DSO):
The DSO for Matson Inc is not provided for the periods mentioned in the data, suggesting that specific information on the average collection period for accounts receivable is not available. Without this data, it is challenging to assess the efficiency of the company in collecting payments from customers.

3. Number of Days of Payables:
Similar to DSO, the information on the number of days of payables for Matson Inc is not provided in the data. This metric helps in understanding how long the company takes to pay its suppliers, which is crucial for managing cash flow and creditor relationships.

In summary, while Matson Inc demonstrates efficiency in managing its inventory levels based on the decreasing trend in DOH, the lack of data on DSO and payables limits a comprehensive assessment of its overall activity ratios and working capital management.

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Long-term

The Fixed Asset Turnover ratio for Matson Inc has shown a steady increase from 1.37 in March 2020 to a peak of 2.52 in June 2022. This ratio indicates that the company generated $2.52 in revenue for every dollar invested in fixed assets during that period. However, the ratio declined thereafter to 1.31 in September 2023 and was not reported for the following periods.

In contrast, the Total Asset Turnover ratio shows a fluctuating trend for Matson Inc. It started at 0.77 in March 2020, increased to 1.06 by December 2021, and then decreased to 0.74 by December 2024. This ratio illustrates how efficiently the company utilizes all its assets to generate sales revenue. The declining trend in the later periods may indicate a decrease in the company's efficiency in generating sales relative to its total asset base.

Overall, the Fixed Asset Turnover ratio demonstrates the efficiency of Matson Inc in utilizing its fixed assets to generate revenue. On the other hand, the Total Asset Turnover ratio provides insights into the company's overall efficiency in asset utilization. Both ratios are essential in assessing the company's operational performance and efficiency over time.