Myers Industries Inc (MYE)

Short-term

Turnover ratios

By analyzing Myers Industries Inc.'s activity ratios, we can gain insights into the efficiency of the company's management of its inventory, receivables, payables, and working capital over the past five years.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company sells and replaces its inventory during a specific period.
- Myers Industries Inc.'s inventory turnover has fluctuated over the years but has generally remained above 5, indicating efficient management of inventory.
- A slight decrease in inventory turnover from 2022 to 2023 may signal a slightly longer time taken to sell and replace inventory.

2. Receivables Turnover:
- The receivables turnover ratio reveals how many times a company collects its accounts receivable during a given period.
- Myers Industries Inc. has maintained a relatively stable receivables turnover ratio above 6, indicating prompt collection of receivables.
- The decrease in receivables turnover from 2021 to 2022 suggests a longer collection period for receivables in 2022.

3. Payables Turnover:
- The payables turnover ratio reflects how many times a company pays off its accounts payable during a specific period.
- Myers Industries Inc.'s payables turnover has varied but generally remained above 5, indicating a consistent payment cycle.
- The decrease in payables turnover from 2022 to 2023 may imply a longer time taken to settle accounts payable in 2023.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales.
- Myers Industries Inc. has shown fluctuations in working capital turnover, with a significant increase from 2020 to 2021, followed by a decrease in 2022.
- The high working capital turnover ratio in 2020 and 2021 suggests effective utilization of working capital to generate sales, while the drop in 2022 and subsequent increase in 2023 may require further investigation into underlying factors.

Overall, the analysis of Myers Industries Inc.'s activity ratios highlights the company's ability to efficiently manage its inventory, receivables, payables, and working capital. Monitoring these ratios over time can provide valuable insights into the company's operational performance and financial health.

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Average number of days

Based on the provided data, we can observe the following trends in Myers Industries Inc.'s activity ratios:

1. Days of Inventory on Hand (DOH):
- The DOH has shown fluctuations over the past five years, ranging from 46.91 days in 2019 to 71.10 days in 2020, with a current value of 59.85 days in 2023.
- A higher DOH indicates that Myers Industries Inc. is holding inventory for a longer period, which could potentially tie up capital and increase carrying costs.

2. Days of Sales Outstanding (DSO):
- The DSO has varied over the years, with values ranging from 44.18 days in 2019 to 60.61 days in 2020, currently standing at 57.75 days in 2023.
- A higher DSO suggests that the company is taking longer to collect cash from its credit sales, which may impact cash flow and liquidity.

3. Number of Days of Payables:
- The number of days of payables has shown fluctuations, ranging from 49.67 days in 2019 to 65.95 days in 2020, with a current value of 52.08 days in 2023.
- A higher number of days of payables indicates that Myers Industries Inc. is taking longer to settle its payables, potentially benefiting from extended credit terms.

Overall, the company's activity ratios reflect variations in its inventory management, accounts receivable collection, and accounts payable practices over the past five years. Management should focus on optimizing these ratios to improve operational efficiency and working capital management.

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Long-term

Myers Industries Inc.'s fixed asset turnover has shown some fluctuations over the past five years, ranging from a low of 6.90 in 2020 to a high of 9.38 in 2019. The fixed asset turnover ratio indicates how efficiently the company is utilizing its fixed assets to generate sales. A higher fixed asset turnover ratio is generally preferred as it implies that the company is generating more sales per dollar of investment in fixed assets.

On the other hand, the total asset turnover ratio, which measures the efficiency of the company in using all its assets to generate sales, has also fluctuated over the same period. The ratio has ranged from a low of 1.28 in 2020 to a high of 1.66 in 2022. A higher total asset turnover ratio indicates that the company is generating more sales for each dollar of assets it owns.

Overall, both the fixed asset turnover and total asset turnover ratios of Myers Industries Inc. have shown some variability over the past five years, indicating fluctuations in the company's efficiency in utilizing its assets to generate sales. It would be important to further assess the reasons behind these fluctuations to better understand the company's long-term asset management and operational efficiency.