Monro Muffler Brake Inc (MNRO)
Activity ratios
Short-term
Turnover ratios
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 23, 2023 | Sep 30, 2023 | Sep 23, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 4.42 | 4.84 | 3.63 | 3.98 | 3.83 | 3.88 | 5.65 | 5.75 | 6.05 | 5.90 | 6.27 | 6.56 | 6.91 | 5.28 | 5.02 | 4.97 | 4.70 | 4.50 | 4.34 |
| Receivables turnover | — | 82.27 | 83.29 | 102.33 | 30.72 | 83.30 | 1,582.87 | 89.21 | 64,514.35 | 92.27 | 25.50 | 101.93 | 107.05 | 115.36 | 41.53 | 90.88 | 70.33 | 65.95 | 27.30 | 50.15 |
| Payables turnover | — | 2.46 | 2.62 | 2.11 | 2.43 | 2.14 | 2.17 | 2.96 | 3.01 | 3.10 | 3.32 | 3.88 | 4.81 | 5.70 | 6.65 | 7.23 | 6.77 | 6.48 | 6.50 | 5.43 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the activity ratios provided for Monro Muffler Brake Inc, we can analyze the efficiency of the company's operations:
1. Inventory Turnover:
The inventory turnover ratio measures how efficiently a company is managing its inventory. Monro Muffler Brake Inc's inventory turnover ratio has been gradually increasing over the periods, indicating that the company is selling its inventory more quickly. This improvement reflects effective inventory management and possibly strong demand for its products.
2. Receivables Turnover:
The receivables turnover ratio shows how efficiently a company is collecting payments from its customers. Monro Muffler Brake Inc's receivables turnover ratio fluctuates significantly across periods. The extremely high value in one period (e.g., June 30, 2023) might be due to data anomalies. In general, a higher turnover ratio indicates better credit management and faster collections.
3. Payables Turnover:
The payables turnover ratio measures how quickly a company pays its suppliers. Monro Muffler Brake Inc's payables turnover ratio has been decreasing over periods, which may indicate a longer time taken to pay suppliers. This could potentially strain relationships with suppliers if not managed efficiently.
4. Working Capital Turnover:
The working capital turnover ratio assesses how effectively a company is utilizing its working capital to generate sales. The absence of data for this ratio across all periods suggests that Monro Muffler Brake Inc may not be focusing on this metric or it may not be applicable to the company's operations.
In conclusion, Monro Muffler Brake Inc shows varying efficiency levels in managing its inventory, collecting receivables, and paying its suppliers. The company could benefit from consistent monitoring and improvement in these activity ratios to enhance overall operational efficiency.
Average number of days
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 23, 2023 | Sep 30, 2023 | Sep 23, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 82.61 | 75.41 | 100.48 | 91.82 | 95.20 | 94.04 | 64.58 | 63.46 | 60.30 | 61.90 | 58.26 | 55.68 | 52.83 | 69.16 | 72.64 | 73.50 | 77.70 | 81.08 | 84.17 |
| Days of sales outstanding (DSO) | days | — | 4.44 | 4.38 | 3.57 | 11.88 | 4.38 | 0.23 | 4.09 | 0.01 | 3.96 | 14.32 | 3.58 | 3.41 | 3.16 | 8.79 | 4.02 | 5.19 | 5.53 | 13.37 | 7.28 |
| Number of days of payables | days | — | 148.23 | 139.17 | 172.72 | 150.13 | 170.58 | 168.50 | 123.43 | 121.29 | 117.74 | 109.90 | 94.12 | 75.93 | 64.03 | 54.90 | 50.48 | 53.94 | 56.31 | 56.15 | 67.21 |
Based on the provided data on Monro Muffler Brake Inc's activity ratios:
1. Days of Inventory on Hand (DOH):
- Monro Muffler Brake Inc's DOH has shown a downward trend from 84.17 days as of December 31, 2020, to 82.61 days as of December 31, 2024. This suggests that the company has been managing its inventory more efficiently over the years, with a slight increase in the most recent period.
2. Days of Sales Outstanding (DSO):
- Monro Muffler Brake Inc's DSO fluctuated during the period, ranging from 0.01 days as of September 23, 2023, to 14.32 days as of March 31, 2023. The company managed to keep its DSO relatively low, indicating efficient management of accounts receivable and timely collection of sales proceeds.
3. Number of Days of Payables:
- Monro Muffler Brake Inc's number of days of payables increased significantly over the years, from 67.21 days as of December 31, 2020, to 148.23 days as of December 31, 2024. This indicates that the company is taking longer to pay its suppliers, which could potentially strain vendor relationships if not managed carefully.
In conclusion, Monro Muffler Brake Inc has shown improvements in managing its inventory and accounts receivable efficiently, but the company needs to monitor and potentially optimize its payables management to maintain healthy supplier relationships and overall liquidity.
Long-term
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Dec 23, 2023 | Sep 30, 2023 | Sep 23, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | — | 4.49 | — | 4.46 | 4.34 | 4.35 | 4.37 | 1.78 | 1.77 | 1.71 | 1.65 | 1.59 | 1.48 | 3.44 | 3.31 |
| Total asset turnover | — | 0.72 | 0.73 | 0.72 | 0.75 | 0.73 | 0.74 | 0.74 | 0.75 | 0.74 | 0.75 | 0.75 | 0.75 | 0.75 | 0.73 | 0.71 | 0.69 | 0.65 | 0.62 | 0.60 |
Monro Muffler Brake Inc's fixed asset turnover has shown fluctuation over the years. The ratio increased steadily from 2020 to 2022, indicating efficient use of fixed assets to generate sales. However, there was a decrease in the ratio from mid-2022 through 2023, reflecting a potential decline in productivity or the need for additional investments in fixed assets. The ratio then began to rise again in late 2023, suggesting an improvement in asset utilization.
In terms of total asset turnover, the company's performance has been relatively stable over the years. The ratio hovered around 0.7, indicating that Monro Muffler Brake Inc generated approximately 70 cents in sales for every dollar of assets on its balance sheet. The slight fluctuations in the ratio suggest that the company has been able to effectively generate revenue with its total asset base.
Overall, while the fixed asset turnover ratio experienced some variability, the total asset turnover remained relatively consistent. Monro Muffler Brake Inc should continue to monitor its asset utilization to ensure optimal performance and efficiency in the long term.