Myers Industries Inc (MYE)
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 | 8.24 | 8.00 | 8.14 | 8.00 | 8.81 | 7.55 | 7.31 | 7.61 | 7.69 | 7.34 | 7.48 | 7.55 | 7.21 | 9.39 | 9.09 | 9.54 | 11.01 | 11.61 | 12.30 | 12.33 |
| Receivables turnover | 7.14 | 7.11 | 7.40 | 6.81 | 6.73 | 6.89 | 6.51 | 6.14 | 7.58 | 6.03 | 6.41 | 5.95 | 6.10 | 6.48 | 6.78 | 7.65 | 8.28 | 8.25 | 7.48 | 7.69 |
| Payables turnover | 9.46 | 9.54 | 9.78 | 8.74 | 11.19 | 8.40 | 7.63 | 7.48 | 8.81 | 8.45 | 7.28 | 7.55 | 7.77 | 9.51 | 10.04 | 9.47 | 10.40 | 9.42 | 9.86 | 9.74 |
| Working capital turnover | 8.89 | 9.99 | 9.37 | 9.71 | 7.53 | 7.74 | 7.50 | 7.70 | 8.73 | 6.97 | 8.54 | 7.30 | 12.30 | 5.63 | 6.16 | 7.04 | 5.04 | 5.48 | 5.03 | 5.76 |
By analyzing Myers Industries Inc.'s activity ratios, we can gain insights into how efficiently the company is managing its assets and liabilities.
1. Inventory Turnover: The inventory turnover ratio measures how effectively the company is selling its inventory. Myers Industries Inc. had a relatively stable inventory turnover ranging between 5.56 to 6.60 over the past eight quarters. This suggests that the company is efficiently managing its inventory levels and converting them into sales.
2. Receivables Turnover: The receivables turnover ratio indicates how quickly the company collects its accounts receivable. Myers Industries Inc. showed varying receivables turnover ratios over the quarters, with values ranging from 6.12 to 7.41. A higher turnover ratio signifies that the company is efficiently collecting on its credit sales.
3. Payables Turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. Myers Industries Inc. had fluctuating payables turnover ratios, with values ranging from 5.72 to 8.38. A higher turnover ratio indicates that the company is efficiently managing its accounts payable.
4. Working Capital Turnover: The working capital turnover ratio measures how effectively the company is utilizing its working capital to generate sales. Myers Industries Inc. demonstrated improving working capital turnover ratios over the quarters, ranging from 7.49 to 9.99. A higher turnover ratio suggests that the company is utilizing its working capital efficiently to generate revenue.
In summary, based on the activity ratios analysis, Myers Industries Inc. appears to be effectively managing its inventory, receivables, payables, and working capital to support its sales operations efficiently.
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 | 44.32 | 45.61 | 44.87 | 45.61 | 41.42 | 48.37 | 49.93 | 47.99 | 47.45 | 49.72 | 48.83 | 48.31 | 50.65 | 38.86 | 40.15 | 38.28 | 33.14 | 31.45 | 29.67 | 29.59 |
| Days of sales outstanding (DSO) | days | 51.13 | 51.34 | 49.30 | 53.60 | 54.24 | 53.00 | 56.07 | 59.47 | 48.18 | 60.52 | 56.90 | 61.39 | 59.86 | 56.30 | 53.87 | 47.74 | 44.07 | 44.24 | 48.80 | 47.46 |
| Number of days of payables | days | 38.57 | 38.28 | 37.33 | 41.74 | 32.63 | 43.44 | 47.82 | 48.77 | 41.43 | 43.21 | 50.14 | 48.37 | 46.99 | 38.40 | 36.35 | 38.53 | 35.10 | 38.73 | 37.02 | 37.48 |
Analyzing Myers Industries Inc.'s activity ratios based on the provided data, we observe the following trends:
1. Days of Inventory on Hand (DOH): Myers Industries Inc. has shown relatively stable inventory management over the past eight quarters, with the average DOH ranging from 55.30 days to 65.63 days. In Q4 2023, the company held inventory for approximately 59.85 days, which is somewhat in line with the historical average. This indicates that Myers Industries Inc. has effectively managed its inventory levels to support sales without excessive stockpiling.
2. Days of Sales Outstanding (DSO): The DSO metric reflects the average number of days it takes for Myers Industries Inc. to collect its accounts receivable. The company has experienced some fluctuations in DSO over the period, with values ranging from 49.27 days to 59.61 days. In Q4 2023, the DSO stood at 57.75 days, which is higher compared to the historical average. This may suggest that the company is taking longer to collect payments from customers, possibly impacting its cash flow efficiency.
3. Number of Days of Payables: Myers Industries Inc.'s payables period has shown variability over the past quarters, with the number of days of payables ranging from 43.56 days to 63.78 days. In Q4 2023, the company took approximately 52.08 days to settle its payables, falling within the historical range. The stable payables period indicates that Myers Industries Inc. has maintained consistency in managing its trade credit arrangements with suppliers.
Overall, while Myers Industries Inc. demonstrates proficient inventory management and stable payables period, the company should focus on improving its accounts receivable collection efficiency to optimize its working capital and cash flow position.
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 | 7.53 | 7.80 | 8.11 | 8.41 | 8.86 | 9.06 | 9.05 | 8.83 | 8.29 | 7.74 | 7.53 | 6.76 | 6.90 | 9.08 | 8.89 | 9.23 | 9.38 | 9.58 | 9.56 | 9.32 |
| Total asset turnover | 1.50 | 1.57 | 1.59 | 1.60 | 1.66 | 1.61 | 1.55 | 1.57 | 1.57 | 1.42 | 1.47 | 1.34 | 1.28 | 1.34 | 1.36 | 1.43 | 1.46 | 1.50 | 1.55 | 1.60 |
Myers Industries Inc.'s long-term activity ratios, namely the fixed asset turnover and total asset turnover, provide insights into the efficiency with which the company utilizes its assets to generate sales revenue.
1. Fixed Asset Turnover: This ratio indicates how effectively the company is using its fixed assets to generate sales. In the latest quarter, Q4 2023, the fixed asset turnover was 7.53, showing that Myers Industries Inc. generated $7.53 in sales for every dollar invested in fixed assets. The trend over the past eight quarters demonstrates a generally declining trend in fixed asset turnover, indicating a potential decrease in efficiency in utilizing fixed assets to generate revenue.
2. Total Asset Turnover: This ratio measures the efficiency of the company in using all its assets to generate sales. Myers Industries Inc.'s total asset turnover ranged from 1.50 to 1.66 over the past eight quarters. A higher total asset turnover ratio is generally favorable as it indicates that the company is generating more sales from its total assets. Myers Industries Inc.'s total asset turnover ratio has fluctuated within a relatively narrow range, suggesting stable efficiency in utilizing total assets to generate revenue over time.
In conclusion, while Myers Industries Inc. has shown consistent efficiency in utilizing its total assets to generate sales, there has been a declining trend in the efficiency of utilizing fixed assets for revenue generation. It may be worth investigating further to understand the factors contributing to the fluctuations in these long-term activity ratios.