Mister Car Wash, Inc. Common Stock (MCW)

Short-term

Turnover ratios

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

1. Inventory Turnover:
- The inventory turnover ratio has shown fluctuations over the quarters, ranging from a low of 29.26 to a high of 69.24.
- Overall, the company's inventory turnover has been relatively high, indicating efficient management of inventory levels and quick sales of products.

2. Receivables Turnover:
- The receivables turnover data is not available for any of the periods, suggesting that the company may not have substantial accounts receivable or has not disclosed this information.

3. Payables Turnover:
- Similar to receivables turnover, payables turnover data is not provided for the periods, making it difficult to assess the company's efficiency in paying its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio has shown a decreasing trend from 47.82 to 13.70 over the quarters, indicating a decline in the company's efficiency in generating revenue relative to its working capital.
- The working capital turnover data is not available for the recent periods, limiting the ability to evaluate the company's performance in converting working capital into sales.

Overall, the inventory turnover ratio highlights Mister Car Wash, Inc.'s strong inventory management practices, while the lack of data for receivables and payables turnover limits the assessment of the company's efficiency in managing receivables and payables. The decreasing trend in the working capital turnover ratio suggests potential inefficiencies in utilizing working capital to generate sales in the earlier periods.

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Average number of days

The Days of Inventory on Hand (DOH) for Mister Car Wash, Inc. Common Stock decreased from 12.07 days as of December 31, 2020, to 5.81 days by December 31, 2024. This indicates an improvement in the management of inventory, with the company being able to sell its inventory faster over the years.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data is not provided, which limits the analysis of Mister Car Wash, Inc.'s accounts receivable and accounts payable turnover and efficiency.

Overall, based on the available Days of Inventory on Hand (DOH) data, Mister Car Wash, Inc. Common Stock appears to have effectively managed its inventory levels and improved its inventory turnover ratio over the years, which may indicate efficient operational practices in terms of managing inventory levels and sales.

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Long-term

Mister Car Wash, Inc.'s Fixed Asset Turnover ratio has shown fluctuation over the years, starting from a low of 0.62 in March 2021 and reaching a peak of 1.64 in March 2022. The ratio then experienced a downward trend, dropping to 0.61 in September 2023, before slightly recovering to 0.63 in June 2023. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue.

On the other hand, the Total Asset Turnover ratio has remained relatively stable around 0.32 for most of the period from December 2020 to September 2024, indicating that the company's total assets are generating a consistent level of sales revenue. This ratio provides insight into how effectively the company is utilizing all its assets to generate sales.

Overall, the Fixed Asset Turnover ratio demonstrates the company's ability to generate revenue from its fixed assets, while the Total Asset Turnover ratio indicates the efficiency of utilizing all assets in generating sales. Monitoring these ratios over time can provide valuable insights into Mister Car Wash, Inc.'s operational efficiency and asset utilization strategies.