ODP Corp (ODP)

Short-term

Turnover ratios

1. Inventory Turnover:
- ODP Corp's inventory turnover ratio fluctuated over the years, with values ranging from 7.20 to 8.15. A higher inventory turnover ratio indicates that the company is efficiently managing its inventory by selling and restocking goods at a faster pace.

2. Receivables Turnover:
- ODP Corp did not provide data for receivables turnover for any of the years specified, which makes it challenging to assess how quickly the company collects its accounts receivable. A higher receivables turnover ratio would typically indicate a more efficient collection process.

3. Payables Turnover:
- Similar to receivables turnover, ODP Corp did not disclose information on payables turnover for any of the years, making it difficult to analyze the company's efficiency in paying its suppliers and managing its accounts payable.

4. Working Capital Turnover:
- The working capital turnover ratio for ODP Corp shows a significant increase from 37.06 in 2020 to 166.49 in 2022. This suggests that the company is generating more revenue relative to its working capital. However, the absence of data for 2023 and 2024 limits a comprehensive evaluation of the company's efficiency in using its working capital effectively.

In conclusion, while the analysis of ODP Corp's activity ratios provides some insights into its operational efficiency, the lack of data for certain metrics hinders a complete assessment of the company's overall performance in managing its inventory, receivables, payables, and working capital.

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Average number of days

Based on the provided data, ODP Corp's activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The DOH indicates how many days, on average, the company holds inventory before selling it.
- ODP Corp's DOH has increased from 44.79 days on December 31, 2020, to 50.69 days on December 31, 2024.
- A higher DOH may suggest slower inventory turnover or potential issues in managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO):
- The DSO reflects the average number of days it takes for the company to collect revenue after making a sale.
- The data provided shows "— days" for all years, indicating that specific information on DSO is not available.
- Without DSO data, it is challenging to assess the efficiency of ODP Corp in collecting receivables.

3. Number of Days of Payables:
- This ratio signifies the average number of days the company takes to pay its suppliers.
- The data shows "— days" for all years, suggesting that information on the payment terms ODP Corp negotiates with suppliers is not provided.
- Understanding the company's payment patterns is crucial for assessing its liquidity management and relationships with suppliers.

In conclusion, while the trend in ODP Corp's DOH indicates a potential issue related to inventory management, the lack of information on DSO and payables hinders a comprehensive analysis of the company's overall activity ratios.

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Long-term

The fixed asset turnover ratio for ODP Corp has shown a consistent upward trend from 16.86 in 2020 to 24.12 in 2022, indicating that the company is generating more sales relative to its investment in fixed assets. However, the data for 2023 and 2024 is unavailable.

On the other hand, the total asset turnover ratio has fluctuated over the years, with a slight decrease from 1.75 in 2020 to 1.74 in 2021, followed by an increase to 2.05 in 2022, and then a slight decline to 1.98 in 2024. This suggests that the company's ability to generate sales from its total assets has varied, possibly due to changes in business operations or asset utilization efficiency.

Overall, the increasing trend in fixed asset turnover and the fluctuating yet relatively stable total asset turnover indicate that ODP Corp has been efficiently utilizing its assets to generate sales, though further analysis of the underlying reasons for these fluctuations would be necessary to provide a more conclusive assessment of the company's long-term activity ratios.