Monro Muffler Brake Inc (MNRO)

Short-term

Turnover ratios

1. Inventory Turnover: Monro Muffler Brake Inc's inventory turnover has varied over the past five years, with the ratio ranging from 0.18 to 0.29. In 2024, the ratio decreased to 0.26, indicating that the company's inventory turned over approximately 0.26 times during the year. A lower inventory turnover may suggest inefficiencies in managing inventory levels or slow sales.

2. Receivables Turnover: The data for receivables turnover is missing for the first three years but shows significantly high values of 101.26 and 152.52 for 2021 and 2020, respectively. These high figures suggest that Monro Muffler Brake Inc efficiently collects its accounts receivables, turning them over over a hundred times in those years.

3. Payables Turnover: The payables turnover ratio for Monro Muffler Brake Inc has been relatively stable around 0.16 to 0.34 over the last five years. In 2022, there was a spike in the ratio to 0.34, indicating that the company took longer to pay its suppliers that year. A higher payables turnover may sometimes suggest a strong bargaining position with suppliers.

4. Working Capital Turnover: The data for working capital turnover is missing for all years except 2020, where the ratio is reported as 3.60. A higher working capital turnover ratio implies that the company is efficient in utilizing its working capital to generate revenue. In this case, the ratio indicates that for every dollar of working capital invested, the company generated $3.60 in sales.

Overall, analyzing these activity ratios provides insight into how effectively Monro Muffler Brake Inc is managing its inventory, receivables, payables, and working capital to support its operations and generate revenue.

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Average number of days

Monro Muffler Brake Inc's activity ratios provide insight into how efficiently the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an improvement over the years, decreasing from 2,023.42 days in 2020 to 1,399.00 days in 2024.
- A high DOH indicates that Monro Muffler Brake Inc may be holding too much inventory, tying up financial resources. The recent decrease is a positive sign, suggesting better inventory management.

2. Days of Sales Outstanding (DSO):
- The DSO data is missing for most years, except for 2021 and 2020, where it was 3.60 days and 2.39 days, respectively.
- Lower DSO values indicate that Monro Muffler Brake Inc is efficient in collecting payments from customers quickly. However, a comparison over more years would provide better insights into the trend.

3. Number of Days of Payables:
- The trend in the number of days of payables shows fluctuations, with an increase from 1,074.14 days in 2020 to 2,287.46 days in 2024.
- A high number of days of payables indicates that the company takes longer to pay its suppliers, which could have implications for relationships and discounts. The recent increase may be a concern that needs further investigation.

Overall, while Monro Muffler Brake Inc has shown improvement in managing its inventory and collecting payments efficiently, the increase in the number of days of payables warrants monitoring to ensure sustainable supplier relationships.

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Long-term

The long-term activity ratios of Monro Muffler Brake Inc, specifically the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in utilizing its assets to generate sales.

The fixed asset turnover ratio has shown a generally increasing trend over the past five years, indicating that Monro Muffler Brake Inc has been able to generate more sales per dollar of fixed assets invested. This suggests an improvement in the company's efficiency in utilizing its long-term assets such as property, plant, and equipment to generate revenue.

On the other hand, the total asset turnover ratio has remained relatively stable around 0.70 over the same period. This ratio indicates how efficiently the company is utilizing all its assets, including both fixed and current assets, to generate sales. A total asset turnover ratio of less than 1 implies that Monro Muffler Brake Inc may have a higher level of assets relative to its sales, possibly indicating underutilization of assets.

Overall, while the fixed asset turnover ratio suggests that Monro Muffler Brake Inc has improved its efficiency in utilizing its fixed assets to generate sales, the stability of the total asset turnover ratio calls for further analysis to assess the overall asset utilization efficiency of the company.