Madison Square Garden Sports Corp (MSGS)

Short-term

Turnover ratios

The activity ratios of Madison Square Garden Sports Corp over the indicated periods reveal notable trends in inventory, receivables, and payables management.

Inventory Turnover:
The inventory turnover ratio increased significantly from 11.82 times in June 2021 to 26.61 times in June 2022, indicating a substantial improvement in inventory management or sales efficiency within that year. Subsequently, there was a slight decline to 22.10 times in June 2023. The absence of data beyond this date precludes further analysis of inventory activity trends.

Receivables Turnover:
The receivables turnover ratio shows a consistent upward trajectory, rising from 7.74 times in June 2021 to 10.67 in June 2022, then further to 11.99 in June 2023. This suggests increasingly efficient collection processes and better management of accounts receivable, supported by additional increases to 12.82 times in June 2024 and a notable jump to 35.30 times in June 2025, indicating substantial improvement in receivables management efficiency in that latter period.

Payables Turnover:
Payables turnover ratio experienced fluctuations, decreasing sharply from 126.64 times in June 2021 to 44.44 times in June 2022, implying that the company was paying its suppliers more slowly, or extending credit terms. It then increased again to 60.36 times in June 2023, reflecting possibly improved payment practices or shorter supplier credit terms. The ratio further stabilized to 62.27 times in June 2024 and slightly decreased to 53.62 times in June 2025, indicating relatively consistent payables management following the earlier fluctuations.

Working Capital Turnover:
Data for working capital turnover is not available for any of the periods considered, resulting in an inability to analyze trends related to the company’s efficiency in utilizing working capital.

In summary, the ratios demonstrate an overall trend of improving receivables management efficiency, a significant initial enhancement in inventory turnover which slightly receded, and fluctuating payables turnover suggesting adjustments in payment practices. The absence of data on working capital turnover limits insights into the overall efficiency of working capital utilization.

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Average number of days

The activity ratios for Madison Square Garden Sports Corp, specifically the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days Payables, reveal notable trends over the period from June 30, 2021, to June 30, 2023, with projections into 2024 and 2025.

Days of Inventory on Hand (DOH):
The DOH decreased significantly from 30.89 days in 2021 to 13.72 days in 2022, indicating a substantial improvement in inventory management or a reduction in inventory levels relative to sales. In 2023, there was a slight increase to 16.51 days, suggesting a minor elongation in inventory turnover, potentially due to changes in inventory strategy or product demand. Data for 2024 and 2025 are not available, so subsequent trends cannot be assessed.

Days of Sales Outstanding (DSO):
The DSO shows a consistent downward trend, decreasing from 47.14 days in 2021 to 34.19 days in 2022, and further to 30.45 days in 2023. This decline reflects an improvement in accounts receivable collections, implying enhanced efficiency in cash collection processes or tighter credit policies. The trend continues into 2024 with a further reduction to 28.46 days, and a significant drop to 10.34 days is projected for 2025, which indicates a potent acceleration in receivables turnover, potentially impacting cash flow positively.

Number of Days Payables:
The number of days payable increased from 2.88 days in 2021 to 8.21 days in 2022, then slightly decreased to 6.05 days in 2023. The overall increase indicates a trend toward longer payment periods to suppliers, which could be a strategic move to optimize working capital or negotiations favoring extended payment terms. The figures for 2024 and 2025 show stability, with slight variations around 5.86 to 6.81 days, suggesting a relatively steady approach to managing payables in the near term.

Summary of Trends:
The data suggests that Madison Square Garden Sports Corp has enhanced its operational efficiency over the observed period, notably in inventory and receivables management. The significant reduction in DSO indicates more prompt collection of receivables, enhancing liquidity. The decrease in DOH, though modest in 2023, highlights efficient inventory management. The increase in days payable suggests a cautious approach to managing liabilities, possibly to preserve cash flow.

Overall, these activity ratios reflect strategic improvements aimed at optimizing working capital and operational efficiency; however, ongoing analysis of future data is necessary to confirm sustained trends.

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Long-term

The analysis of Madison Square Garden Sports Corp's long-term activity ratios reveals significant changes over the specified periods. The fixed asset turnover ratio, which measures how effectively the company utilizes its fixed assets to generate sales, demonstrates a notable upward trend. From 0.56 on June 30, 2021, it increased to 1.14 by June 30, 2022, indicating improved efficiency in utilizing fixed assets. This upward momentum accelerates sharply in the subsequent year, rising to 29.10 on June 30, 2023, suggesting a substantial enhancement in the deployment or utilization of fixed assets relative to sales. However, the ratio data for June 30, 2024, and June 30, 2025, are not available, leaving the trend during this period indeterminate.

In contrast, the total asset turnover ratio, which assesses the overall efficiency of all assets in generating sales, shows a steady but less dramatic increase over the period. Beginning at 0.32 on June 30, 2021, it advances to 0.63 by June 30, 2022, then slightly to 0.67 on June 30, 2023. The ratio continues an upward trajectory through June 30, 2024, reaching 0.76, before slightly declining to 0.71 on June 30, 2025. The gradual improvement in the total asset turnover indicates a consistent enhancement in the company's overall efficiency in asset utilization over time.

This divergence between the fixed asset and total asset turnover ratios suggests that the substantial spike in fixed asset turnover in 2023 could be attributed to specific operational changes, asset disposals, or unique accounting practices related to fixed assets. Meanwhile, the steady increase in total asset turnover reflects a broader trend of improved efficiency across the company's entire asset base. Overall, the data indicate that Madison Square Garden Sports Corp has been progressively improving the effectiveness of its assets in generating sales, with a particularly noteworthy leap in fixed asset utilization in 2023.