Mister Car Wash, Inc. Common Stock (MCW)

Short-term

Turnover ratios

Mister Car Wash, Inc.'s inventory turnover has shown fluctuations over the years, starting at 30.24 in December 2020, increasing to 50.75 by December 2024. This indicates that the company's ability to sell and replace its inventory has improved significantly over this period, suggesting efficient inventory management.

The receivables turnover ratio was not provided for any of the years, indicating that data on the collection of accounts receivable is not available. This could be due to the nature of the company's business model or the lack of significant accounts receivable balances.

Similarly, payables turnover data was not provided for any of the years, making it difficult to assess how quickly the company is paying its trade payables. This ratio is essential for understanding the company's relationship with its suppliers and its ability to manage its working capital effectively.

The working capital turnover ratio, available for December 2020 at 47.82, shows how efficiently the company is using its working capital to generate sales. However, data for subsequent years is not available, limiting the ability to evaluate any changes or trends in this ratio over time.

Overall, while the inventory turnover ratio indicates improved efficiency in inventory management, the lack of data on receivables and payables turnover ratios restricts a comprehensive analysis of Mister Car Wash, Inc.'s complete activity ratios.

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Average number of days

The analysis of Mister Car Wash, Inc.'s Common Stock activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH):
- The company's DOH decreased from 12.07 days in 2020 to 7.19 days in 2024.
- This indicates that Mister Car Wash, Inc. has been more efficient in managing its inventory levels, holding less inventory on hand to meet sales demands over time.
- A decreasing trend in DOH is generally positive, as it signifies effective inventory management and potentially lower carrying costs.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding for any of the years, indicating a lack of accounts receivable data.
- DSO measures how long it takes for a company to collect payment after a sale, and not having this information could hinder a comprehensive analysis of the company's receivables management.

3. Number of Days of Payables:
- Similarly, the data does not include details on the Number of Days of Payables for any of the years, suggesting a lack of accounts payable information.
- The payables turnover ratio, which relates to the number of days it takes a company to pay its suppliers, is an essential metric for assessing a company's liquidity and payment practices.

In conclusion, based on the provided information, Mister Car Wash, Inc. has shown improvements in its inventory management efficiency, as indicated by the decreasing trend in Days of Inventory on Hand. However, additional data on Days of Sales Outstanding and Number of Days of Payables would be necessary for a more comprehensive analysis of the company's overall working capital management and liquidity position.

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Long-term

The Fixed Asset Turnover ratio for Mister Car Wash, Inc. Common Stock has shown a significant increase from 0.61 in December 31, 2020, to 1.61 in December 31, 2021, before slightly decreasing to 1.56 in December 31, 2022. The ratio is not available for December 31, 2023, and December 31, 2024. This increase signifies that the company has been able to generate more revenue from its fixed assets over the years.

In contrast, the Total Asset Turnover ratio has shown a more stable trend, increasing from 0.30 in December 31, 2020, to 0.33 in December 31, 2022, before slightly dropping to 0.32 in both December 31, 2023, and December 31, 2024. This indicates that the company has been efficient in generating revenue from all its assets as a whole, with a minor fluctuation in recent years.

Overall, the upward trend in the Fixed Asset Turnover ratio suggests improved efficiency in utilizing fixed assets to generate sales, which is a positive indicator for long-term financial health. In comparison, the stable Total Asset Turnover ratio signifies consistent revenue generation from all assets, showcasing the company's ability to effectively utilize its total asset base.