Madison Square Garden Sports Corp (MSGS)

Short-term

Turnover ratios

The analysis of Madison Square Garden Sports Corp's activity ratios over the specified periods indicates significant fluctuations corresponding to the company's operational and strategic shifts.

Inventory Turnover:
The inventory turnover ratio exhibited notable variability from a high of 18.32 times as of September 30, 2020, to a low of 4.54 times on September 30, 2021. Subsequently, the ratio increased markedly, reaching peaks of 26.61 in June 2022 and 23.26 in March 2023, before declining again to 7.55 in September 2023. These fluctuations suggest periods of inventory build-up, likely associated with event scheduling, merchandise stocking, or changes in event frequency, followed by times of reduced inventory activity or more efficient inventory management.

Receivables Turnover:
Receivables turnover ratios showed a generally fluctuating pattern, with a peak of 38.35 in September 2020 and a low of 2.83 in March 2021. After a period of variability, ratios increased again, reaching 13.56 in September 2023. The high ratio early in the period indicates efficient collection of receivables or low receivable balances, whereas the dip suggests periods of slower collections or increased receivables. The resurgence toward 13.56 hints at improved collection efforts or reduced receivable levels. Notably, a significant jump to 35.30 in June 2025 (assuming data completeness) suggests a substantial improvement in receivables management.

Payables Turnover:
Payables turnover ratios experienced considerable fluctuations. The ratio was extremely high in September 2020 at 538.37, indicating very rapid payment cycles or possibly a large accounts payable balance relative to purchases. This ratio decreased significantly to 129.13 in March 2021 and fluctuated thereafter, reaching a low of approximately 44.44 in June 2022. Recent ratios, such as 100.19 in September 2023 and 102.13 in March 2025, denote a relatively consistent payment cycle but still point to ongoing variability in creditor payment practices.

Working Capital Turnover:
This ratio was not reported for the entire period. Absence of data precludes an analysis of working capital efficiency over time.

Summary:
Overall, the activity ratios depict a company experiencing operational periods of both high and low efficiency in managing inventories, receivables, and payables. The pronounced fluctuations likely reflect strategic adjustments, seasonal factors, or operational restructuring. The trends suggest phases of inventory accumulation, variable receivables management, and fluctuating creditor payment cycles, all of which are consistent with a dynamic operational environment inherent to a sports and entertainment enterprise.

Note:
Some ratios such as working capital turnover are unavailable across the period, limiting comprehensive liquidity and operating cycle analysis.

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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 Days of Payables, demonstrate variability across the reporting periods, reflecting operational and financial dynamics over time.

Days of Inventory on Hand (DOH):
The DOH exhibits significant fluctuations. Starting at approximately 19.93 days as of September 30, 2020, there is a substantial increase to 60.02 days by December 31, 2020, and peaking further at 80.37 days during September 2021. The duration then declines sharply to 29.71 days at the end of 2021 and further drops to its lowest at 13.72 days in June 2022, indicating a period of increased inventory efficiency or reduced inventory levels. Subsequently, the DOH rises again to 47.73 days by September 2022 and 30.90 days at year-end 2022. In 2023, the inventory duration further decreases, reaching approximately 15.69 days in March and 16.51 days in June. Thereafter, a notable increase occurs with DOH reaching 48.32 days in September 2023 and 38.80 days in December 2023. The subsequent periods (March to September 2024) are not available, but the September 2024 figure indicates a rise to 49.32 days. Overall, the DOH trend reflects periods of inventory buildup and reduction, which may correspond to strategic inventory management or variations in event scheduling and merchandise turnover.

Days of Sales Outstanding (DSO):
The DSO shows a high degree of variability. It was relatively low at 9.52 days as of September 2020 but then surged to 29.84 days at the end of 2020 and dramatically to 128.95 days in March 2021, which suggests postponed collections or extended client credit terms during that period. Afterward, the DSO fluctuates, decreasing to 36.97 days in September 2021, then increasing again to 53.38 days at year-end 2021. In 2022, it falls to 34.19 days in June but increases to 75.05 days by March 2022, then decreases again in later periods, reaching a low of 10.34 days in June 2025. The sharp rise observed in March 2022 followed by subsequent reductions indicates shifting credit collections processes and receivables management efficiencies over time, possibly influenced by seasonality or changes in revenue recognition.

Number of Days of Payables:
This ratio remains relatively stable with minor fluctuations. It was at 0.68 days as of September 2020 and gradually increased to around 2.83 days by March 2021, then stabilizes roughly between 2.39 and 6.82 days over the subsequent periods. Notably, the payables period peaks at 8.21 days in June 2022, but generally stays below 7 days, indicating prompt payment cycles or short-term vendor credit arrangements. The decrease to approximately 3 days in the latter part of 2023 and into 2024 reflects a consistent or slightly accelerated payment schedule.

Overall Interpretation:
The activity ratios suggest that Madison Square Garden Sports Corp has experienced significant operational variability over this period. The fluctuations in DOH and DSO indicate periods of inventory and receivables management adjustments, possibly driven by strategic initiatives, seasonality, or external operational factors such as event scheduling and merchandise turnover. The relatively stable and low accounts payable days suggest a consistent approach to settling liabilities promptly, minimizing financing costs related to payables. The overall trend points toward active management of working capital components, balancing inventory holdings, receivable collections, and payables payments to optimize liquidity and operational efficiency.

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Long-term

The analysis of Madison Square Garden Sports Corp's long-term activity ratios reveals notable fluctuations and evolving efficiencies over recent periods.

The Fixed Asset Turnover ratio has exhibited significant variability from September 2020 through June 2023. Starting at 1.45 in September 2020, it experienced a sharp increase to 13.58 by the end of 2020, indicating a substantial rise in the utilization efficiency of fixed assets to generate revenue during that period. This upward trend continued into 2021, reaching a peak of 29.79 in March 2023, which suggests that the company substantially enhanced its fixed asset utilization, possibly through operational improvements or asset reconfigurations. However, following this peak, the ratio declined sharply to 1.22 by September 2023, signaling a significant decrease in fixed asset productivity or potential changes in asset base or revenue streams.

Conversely, the Total Asset Turnover ratio shows a different trend. It commenced at a relatively moderate level of 0.90 in September 2020 but declined markedly by the end of that year to 0.39, reflecting decreased efficiency in utilizing total assets to generate sales during that period. After reaching a low of 0.20 in March 2021, it gradually increased over subsequent periods, reaching 0.76 by December 2024. The ratio has remained relatively stable around 0.71 to 0.76 from March 2022 onward, indicating a normalization or stabilization of asset utilization efficiency.

Overall, the data suggests that during late 2020 through early 2023, Madison Square Garden Sports aggressively optimized its fixed assets, leading to peak efficiency ratios. However, this trend was not sustainable long-term, as evidenced by the sharp decline in the fixed asset turnover ratio in late 2023. Meanwhile, total asset utilization demonstrated a recovery after initial declines, maintaining relatively steady levels in the most recent periods. These fluctuations could reflect strategic shifts, asset revaluations, operational adjustments, or external market conditions impacting the company's asset productivity.