Callaway Golf Company (MODG)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 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 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 1.41 1.52 1.32 1.16 1.10 1.42 1.67 1.76 1.64 2.85 3.80 4.49 4.93 5.16 4.34 3.81 3.54 4.36 3.75 3.33
Receivables turnover 19.80 13.16 9.98 8.55 21.03 13.42 9.46 8.08 24.66 10.74 7.31 5.39 11.23 6.07 6.22 5.65 11.03 6.38 4.95 4.53
Payables turnover 8.54 10.83 8.54 4.72 6.60 6.61 5.81 5.79 6.33 8.68 11.47 10.90 26.22 — — — 23.82 — — —
Working capital turnover 6.03 5.88 5.56 5.86 11.32 11.66 11.93 13.99 10.27 5.49 5.10 3.50 3.00 2.71 2.89 5.56 6.23 4.71 4.26 4.38

Topgolf Callaway Brands Corp's activity ratios provide insights into how efficiently the company is managing its assets and operations.

1. Inventory Turnover: This ratio indicates how many times inventory is sold and replaced over a specific period. Topgolf's inventory turnover has been fluctuating between 1.65 and 2.53 over the past eight quarters, suggesting some inconsistency in managing inventory levels. It's important for the company to monitor and optimize inventory levels to ensure efficient use of resources.

2. Receivables Turnover: This ratio measures how efficiently the company is collecting outstanding receivables from customers. The trend in Topgolf's receivables turnover from 8.49 to 17.79 indicates that the company has been able to collect receivables more quickly in recent quarters, reflecting effective credit control and collection strategies.

3. Payables Turnover: The payables turnover ratio reflects how quickly the company is paying its suppliers. Topgolf's payables turnover has ranged from 7.10 to 15.66, showing some variability in the payment cycle. A higher turnover suggests that the company is managing its payables efficiently, but too high a turnover may indicate potential cash flow issues.

4. Working Capital Turnover: This ratio measures how effectively the company is utilizing its working capital to generate sales. Topgolf's working capital turnover has decreased from 14.26 to 5.77 over the past eight quarters, indicating a decline in efficiency in converting working capital into revenue. The company should focus on improving this ratio to maximize the utilization of its resources.

Overall, Topgolf Callaway Brands Corp should continue to monitor these activity ratios closely and implement strategies to enhance operational efficiency and optimize asset management.

Average number of days

Dec 31, 2023 Sep 30, 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 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 259.75 240.86 277.12 314.97 333.25 256.50 218.82 207.96 221.95 127.87 95.95 81.25 74.04 70.77 84.06 95.93 103.14 83.72 97.29 109.51
Days of sales outstanding (DSO) days 18.44 27.74 36.58 42.68 17.36 27.20 38.59 45.17 14.80 33.97 49.93 67.75 32.49 60.09 58.70 64.61 33.10 57.22 73.74 80.57
Number of days of payables days 42.74 33.72 42.73 77.30 55.27 55.19 62.78 63.06 57.70 42.03 31.83 33.50 13.92 — — — 15.32 — — —

The analysis of Topgolf Callaway Brands Corp's activity ratios reveals insights into how efficiently the company manages its inventory, collects receivables, and pays its vendors.

1. Days of Inventory on Hand (DOH): The trend in DOH shows an increase from Q1 2022 to Q1 2023, indicating that the company is holding inventory for a longer period. This may suggest challenges in managing inventory levels efficiently or changes in demand patterns affecting stock turnover. A higher DOH could tie up capital in inventory and increase carrying costs.

2. Days of Sales Outstanding (DSO): The DSO trend fluctuates but generally increases from Q1 2022 to Q1 2023, indicating that the company is taking longer to collect payments from customers. A rising DSO could signal potential issues with credit management or collection processes, impacting cash flow and liquidity.

3. Number of Days of Payables: The trend in days of payables shows variations but generally decreases from Q1 2022 to Q1 2023, suggesting that the company is taking longer to settle its payables. A longer payment period may indicate improved working capital management but could also strain vendor relationships if stretched too far.

Overall, the analysis of activity ratios for Topgolf Callaway Brands Corp highlights potential inefficiencies in inventory management, accounts receivable collection, and accounts payable practices that may warrant further investigation to optimize working capital and operational efficiency.

Long-term

Dec 31, 2023 Sep 30, 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 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 1.90 1.96 2.01 2.08 2.14 2.24 2.28 2.25 2.12 2.06 1.88 1.49 10.67 10.29 9.58 10.50 12.49 12.02 11.37 11.46
Total asset turnover 0.45 0.45 0.45 0.45 0.45 0.46 0.45 0.43 0.40 0.37 0.33 0.25 0.79 0.76 0.77 0.74 0.85 0.82 0.71 0.69

The fixed asset turnover ratio for Topgolf Callaway Brands Corp has shown a declining trend over the past eight quarters, starting at 2.21 in Q4 2022 and decreasing to 1.99 in Q4 2023. This indicates that the company's ability to generate sales from its fixed assets has slightly weakened over time. However, the ratio remains relatively stable within the range of 1.99 to 2.33, suggesting that Topgolf Callaway Brands Corp is still efficiently utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has remained relatively stable around the 0.47 range over the same period, indicating that the company's overall ability to generate sales from its total assets has not seen significant fluctuations. This suggests that Topgolf Callaway Brands Corp is maintaining a consistent level of efficiency in utilizing its total assets to generate revenue.

Overall, the long-term activity ratios for Topgolf Callaway Brands Corp indicate that the company has been maintaining a relatively stable level of efficiency in generating revenue from both its fixed assets and total assets. However, the slight decline in the fixed asset turnover ratio warrants monitoring to ensure the company continues to effectively utilize its fixed assets for revenue generation.