Monro Muffler Brake Inc (MNRO)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 5.35 | 5.90 | 5.28 | 4.50 |
| Receivables turnover | — | 31.07 | 99.70 | 41.53 | 27.30 |
| Payables turnover | — | 3.27 | 3.32 | 6.65 | 6.50 |
| Working capital turnover | — | — | — | — | — |
Monro Muffler Brake Inc's activity ratios provide insights into how efficiently the company manages its inventory, receivables, and payables.
- Inventory Turnover: Monro Muffler Brake Inc's inventory turnover has been generally increasing over the years, from 4.50 in 2021 to 5.35 in 2024. This indicates that the company is selling its inventory more frequently, which is a positive sign of efficient inventory management.
- Receivables Turnover: The receivables turnover ratio shows how efficiently the company collects its accounts receivable. Monro Muffler Brake Inc's receivables turnover ratio has fluctuated significantly, with a notable increase from 2021 to 2023, reaching 99.70, before dropping to 31.07 in 2024. This may indicate changes in the company's credit policies or the creditworthiness of its customers.
- Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Monro Muffler Brake Inc's payables turnover has seen a slight decrease from 6.65 in 2022 to 3.27 in 2024. A lower payables turnover may suggest the company is taking longer to pay its suppliers, which could impact relationships with its vendors.
- Working Capital Turnover: The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales. Unfortunately, there is no data provided for Monro Muffler Brake Inc's working capital turnover for any of the years, making it challenging to assess the company's efficiency in this aspect.
Overall, monitoring these activity ratios helps in evaluating Monro Muffler Brake Inc's operational efficiency, inventory management, and effectiveness in managing its accounts receivable and payables. The trends observed in these ratios can provide valuable insights for stakeholders assessing the company's financial health and performance.
Average number of days
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 68.20 | 61.90 | 69.16 | 81.08 |
| Days of sales outstanding (DSO) | days | — | 11.75 | 3.66 | 8.79 | 13.37 |
| Number of days of payables | days | — | 111.51 | 109.90 | 54.90 | 56.15 |
Analyzing the activity ratios of Monro Muffler Brake Inc based on the provided data, we observe the following trends:
1. Days of Inventory on Hand (DOH):
- Monro Muffler Brake Inc managed its inventory efficiently over the years, with a decreasing trend in the Days of Inventory on Hand (DOH). From 81.08 days on March 31, 2021, it decreased to 61.90 days on March 31, 2023, showcasing effective inventory management practices. In the following year, the DOH increased slightly to 68.20 days by March 31, 2024.
2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding (DSO) metric reflects the average number of days a company takes to collect revenue after a sale. Monro Muffler Brake Inc improved its collection efficiency significantly, as the DSO dropped from 13.37 days on March 31, 2021, to just 3.66 days on March 31, 2023. This indicates a more efficient collection process. However, there was a slight increase in DSO to 11.75 days by March 31, 2024, suggesting a potential slowdown in collections.
3. Number of Days of Payables:
- The Number of Days of Payables represents the average number of days a company takes to pay its suppliers. Monro Muffler Brake Inc delayed its payments to suppliers, as evidenced by the increase in this metric. The number of days of payables rose from 56.15 days on March 31, 2021, to 109.90 days on March 31, 2023, and further increased to 111.51 days by March 31, 2024. This indicates a possible strategy to manage cash flow by extending payment terms.
In conclusion, Monro Muffler Brake Inc exhibited effective inventory management, improving collection efficiency, and a strategy of extending payables over the analyzed years. These trends suggest the company's focus on optimizing working capital and cash flow management.
Long-term
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 4.35 | 1.71 | 3.44 |
| Total asset turnover | — | 0.75 | 0.75 | 0.73 | 0.62 |
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. A higher ratio indicates better asset utilization. Monro Muffler Brake Inc's fixed asset turnover has fluctuated over the years. In March 2021, it was 3.44, indicating that the company generated $3.44 in sales for every $1 of fixed assets. However, by March 2022, this ratio decreased to 1.71, suggesting a potential decline in the efficiency of utilizing fixed assets. The ratio significantly improved in March 2023 to 4.35, which could be a signal of better asset management. The data for March 2024 and 2025 is missing.
Total asset turnover ratio assesses how well a company is using its total assets to generate revenue. A higher ratio implies efficient asset utilization and sales generation. Monro Muffler Brake Inc's total asset turnover has shown an increasing trend from March 2021 to March 2023. In March 2021, the ratio stood at 0.62, indicating that the company generated $0.62 in sales for every $1 of total assets. The ratio increased to 0.73 in March 2022 and further to 0.75 in March 2023, reflecting improved efficiency in utilizing total assets to generate revenue. The ratio remained stable at 0.75 in March 2024. Data for March 2025 is unavailable.
Overall, the analysis of Monro Muffler Brake Inc's long-term activity ratios suggests that the company experienced fluctuations in fixed asset turnover and demonstrated a generally improving trend in total asset turnover during the period under consideration. Efficient asset utilization is crucial for driving profitability and financial performance in the long term.