Vail Resorts Inc (MTN)

Short-term

Turnover ratios

Analyzing Vail Resorts Inc's activity ratios provides insights into its efficiency in managing its assets and liabilities.

Inventory turnover has been relatively stable over the past five years, ranging from 3.11 to 4.47. This ratio indicates how many times the company sells and replaces its inventory during a period, with a higher ratio suggesting more efficient inventory management.

Receivables turnover has also been consistent, albeit showing a slight decline from 18.41 in 2020 to 7.68 in 2024. This ratio reflects how quickly the company collects cash from its credit sales, and a higher turnover is generally favorable.

Payables turnover has fluctuated over the years, with a noticeable decrease from 6.53 in 2020 to 3.01 in 2024. This ratio represents how quickly the company pays its suppliers and indicates the efficiency of managing its accounts payable.

The working capital turnover ratio, although not available for the latest year, shows a significant fluctuation. A higher ratio indicates efficient use of working capital to generate sales revenue, which could imply strong operational performance and effective working capital management.

Overall, Vail Resorts Inc's activity ratios suggest that it has maintained relatively efficient management of inventory, receivables, and payables over the years, despite some fluctuations. Further analysis and comparison with industry benchmarks can provide a more comprehensive understanding of the company's operational efficiency.

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Average number of days

Days of inventory on hand (DOH) indicates how efficiently Vail Resorts manages its inventory. A lower number of days suggests that the company is better at turning its inventory into sales. Over the five-year period, the trend in DOH has been fluctuating without a clear pattern, showing variability in inventory management.

Days of sales outstanding (DSO) measures how quickly Vail Resorts collects its accounts receivable. A lower DSO indicates a faster collection of cash from customers. In this case, the DSO has shown a decreasing trend over the period, improving efficiency in collecting receivables.

Number of days of payables indicates how long it takes for Vail Resorts to pay its suppliers. A higher number of days suggests that the company takes longer to settle its payables. The trend in the number of days of payables has been increasing over the period, indicating a slower pace of paying suppliers.

Overall, Vail Resorts has shown mixed performance in its activity ratios over the five-year period, with fluctuations in the days of inventory on hand, a decreasing trend in days of sales outstanding, and an increasing trend in the number of days of payables. This indicates the need for further analysis to understand the underlying factors influencing these ratios and their impact on the company's operations.

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Long-term

Vail Resorts Inc's long-term activity ratios indicate its effectiveness in utilizing its assets to generate sales revenue.

The fixed asset turnover has been relatively stable over the past five years, ranging from 0.90 to 1.22. This ratio measures how efficiently the company is using its fixed assets to generate sales. A higher ratio indicates that the company is generating more revenue per dollar of fixed assets investment. Vail Resorts Inc's fixed asset turnover has been consistently above 1, indicating that the company is efficiently utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has shown a more significant improvement over the years, increasing from 0.31 in 2021 to 0.51 in 2024. This ratio measures how well the company is using all its assets to generate sales. A higher total asset turnover ratio indicates that the company is generating more sales revenue per dollar of total assets investment. The steady increase in Vail Resorts Inc's total asset turnover suggests that the company is becoming more efficient in generating sales revenue with its total asset base.

Overall, Vail Resorts Inc's long-term activity ratios demonstrate the company's ability to efficiently utilize both fixed and total assets to generate revenue, which is a positive indicator of operational efficiency and effectiveness in managing its assets.