New York Times Company (NYT)

Short-term

Turnover ratios

The Inventory Turnover ratio for New York Times Company has shown fluctuating trends over the past few years, ranging from a high of 32.56 in December 2020 to a low of 19.70 in September 2022. This ratio measures how efficiently the company is managing its inventory by indicating the number of times the inventory is sold and replaced during a specific period. A higher turnover ratio is generally favorable as it signifies that inventory is being sold quickly.

The Receivables Turnover and Payables Turnover ratios have not been provided, indicating that data on how efficiently the company is managing its receivables and payables is not available.

The Working Capital Turnover ratio peaked at 27.33 in December 2022, signifying a high level of sales generated per unit of working capital invested. This ratio reflects how effectively the company is utilizing its working capital to generate revenue.

Overall, while the Inventory Turnover and Working Capital Turnover ratios provide insights into New York Times Company's operational efficiency, the lack of data on Receivables and Payables turnover ratios restricts a comprehensive analysis of the company's overall activity efficiency.

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Average number of days

Based on the data provided for New York Times Company, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The average days of inventory on hand for New York Times Company ranged from 11.21 to 18.53 days over the period from December 31, 2020, to September 30, 2022.
- The DOH increased initially from 11.21 to 18.53 days, suggesting a potential buildup of inventory or slower inventory turnover.
- A higher DOH could indicate inefficiencies in managing inventory or a mismatch between production and sales.

2. Days of Sales Outstanding (DSO):
- The data for DSO is missing for all periods provided, indicating that the company's financial statement does not provide information on this measure.
- DSO is typically used to assess how quickly a company collects its outstanding accounts receivable.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is also missing for all periods.
- This metric helps evaluate how long a company takes to pay its suppliers or creditors.

In conclusion, the analysis of New York Times Company's activity ratios based on the available data suggests some insights into inventory management efficiency. However, limitations in the data provided prevent a comprehensive assessment of the company's overall working capital management effectiveness.

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Long-term

The Fixed Asset Turnover ratio for New York Times Company has been gradually increasing over the years, indicating improved efficiency in generating revenue from its fixed assets. The ratio went from 2.92 in March 2020 to 4.27 in March 2023 before leveling off around the 4.00 mark. This suggests that the company has been effectively utilizing its fixed assets to generate sales.

On the other hand, the Total Asset Turnover ratio shows a fluctuating trend, starting at 0.90 in March 2020 and reaching a peak of 0.95 in June 2023. Despite some ups and downs, the ratio remained relatively stable around 0.90-0.95 from 2020 to 2024. This indicates that New York Times Company has been efficiently using its total assets to generate revenue, although there have been some variations in performance.

Overall, the rising Fixed Asset Turnover ratio coupled with the stable Total Asset Turnover ratio indicates that New York Times Company has been effectively managing its asset utilization to drive revenue growth and enhance operational efficiency over the years.