New York Times Company (NYT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 34.89 | 49.46 | 50.02 | 0.00 |
| Receivables turnover | 10.09 | 10.96 | 9.12 | 9.71 | 8.49 |
| Payables turnover | 16.75 | 16.70 | 12.92 | 11.98 | 0.00 |
| Working capital turnover | 14.39 | 28.22 | 5.39 | 5.11 | 6.49 |
The activity ratios of New York Times Co. provide insights into the efficiency of the company in managing its inventory, receivables, payables, and working capital.
1. Inventory turnover: The data for inventory turnover is not available for the years provided, indicating that inventory turnover was not computed or the company may not hold significant levels of inventory for its operations.
2. Receivables turnover: The receivables turnover ratio measures how efficiently the company collects on its credit sales. The decreasing trend in receivables turnover from 2019 to 2023 may indicate a slight decrease in the efficiency of collecting accounts receivable over time. However, with a receivables turnover above 8 in all years, the company is collecting its outstanding receivables efficiently.
3. Payables turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. The increasing trend in payables turnover from 2019 to 2023 suggests that the company is taking longer to pay its suppliers over time. A higher payables turnover ratio may indicate that the company is taking advantage of more favorable credit terms or managing its cash flow effectively.
4. Working capital turnover: The working capital turnover ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. The fluctuating trend in working capital turnover from 2019 to 2023 indicates changes in the efficiency of working capital utilization. With a working capital turnover above 5 in all years, the company is effectively utilizing its working capital to generate sales.
Overall, the analysis of the activity ratios suggests that New York Times Co. is efficiently managing its receivables and working capital, while also potentially optimizing its payables management for improved cash flow and operational efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 10.46 | 7.38 | 7.30 | — |
| Days of sales outstanding (DSO) | days | 36.17 | 33.32 | 40.04 | 37.59 | 42.98 |
| Number of days of payables | days | 21.79 | 21.86 | 28.24 | 30.48 | — |
Activity ratios provide insights into how efficiently a company is managing its assets and liabilities. Here is a detailed analysis of the activity ratios for New York Times Co. over the past five years:
1. Days of Inventory on Hand (DOH): Unfortunately, the data for this ratio is missing for all five years, which limits our ability to assess how quickly the company is turning its inventory into sales. Without this information, it is difficult to evaluate the efficiency of the company's inventory management.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding ratio shows the average number of days it takes the company to collect its accounts receivable. It indicates how efficiently the company is managing its credit sales. Over the past five years, New York Times Co. has shown a generally improving trend in this ratio, with the number of days decreasing from 42.98 days in 2019 to 36.48 days in 2023. This suggests that the company has been able to collect its receivables more quickly, which is a positive sign for its liquidity and cash flow.
3. Number of Days of Payables: This ratio represents the average number of days the company takes to pay its accounts payable. A lower number of days indicates a faster payment cycle. New York Times Co. has shown a fluctuating trend in this ratio over the five years, ranging from 34.17 days in 2023 to 560.56 days in 2019. The significant increase in 2019 may be an anomaly or due to specific circumstances. However, the decreasing trend from 2020 to 2023 suggests that the company has been managing its payables more efficiently in recent years.
In conclusion, while the company's inventory management efficiency is unknown due to missing data, it appears that New York Times Co. has been improving its accounts receivable collection process and managing its payables more effectively over the past five years. These trends indicate a positive direction in terms of optimizing working capital and cash flow management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 4.76 | 4.30 | 3.69 | 3.00 | 2.89 |
| Total asset turnover | 0.90 | 0.94 | 0.83 | 0.77 | 0.87 |
The long-term activity ratios of New York Times Co. indicate how efficiently the company is utilizing its assets to generate revenue over the years.
The fixed asset turnover ratio has shown an increasing trend from 3.00 in 2020 to 4.72 in 2023, indicating that the company is generating more revenue from its fixed assets. This suggests that New York Times Co. has been able to effectively use its long-term assets such as property, plant, and equipment to drive sales.
On the other hand, the total asset turnover ratio has fluctuated slightly over the same period, ranging from 0.77 in 2020 to 0.89 in 2023. This ratio measures how efficiently the company is utilizing all its assets, including both short-term and long-term assets. Although there has been some variability, the overall trend suggests that the company is effectively utilizing its total assets to generate revenue.
In conclusion, the improvement in fixed asset turnover combined with the relatively stable total asset turnover indicates that New York Times Co. has been successful in generating revenue from both its fixed and total assets in the long term. This efficiency in asset utilization is a positive sign of operational effectiveness and can contribute to the company's overall financial performance.