ODP Corp (ODP)

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	5.04	4.85	4.73	5.14	7.50	6.97	6.39	7.57	7.88	8.05	7.45	7.95	8.43	7.72	7.92	8.54	7.79	7.87	7.34	7.89
Receivables turnover	16.06	14.98	16.06	—	15.82	14.24	14.87	15.15	17.88	18.88	13.89	13.56	15.31	14.95	14.89	12.40	7.46	6.15	12.01	11.50
Payables turnover	5.11	4.63	4.58	—	7.56	7.27	6.75	6.72	7.12	7.85	7.28	7.70	8.40	7.44	8.03	7.89	7.83	7.77	7.50	7.43
Working capital turnover	—	—	—	—	166.27	39.14	77.94	99.62	71.40	13.09	30.42	29.57	36.88	51.21	25.93	29.69	29.97	35.29	52.03	40.35

ODP Corp's activity ratios provide insights into the efficiency of its operations.

- Inventory turnover has been relatively stable over the periods, averaging around 7.25 times per year. This indicates that ODP is managing its inventory efficiently, turning over its stock multiple times annually.

- Receivables turnover has shown some variability, with an average of approximately 15 times per year. This indicates that ODP is collecting its receivables efficiently, with a faster turnover leading to quicker cash conversion.

- Payables turnover has also been consistent, averaging around 7 times per year. This suggests that ODP is managing its payables efficiently, taking advantage of credit terms while also paying suppliers in a timely manner.

- Working capital turnover has fluctuated significantly, with a wide range of values observed. The high values in some periods indicate that ODP is generating significant revenue relative to its working capital, while lower values suggest a decrease in revenue generation efficiency.

Overall, ODP Corp's activity ratios reflect a mixed performance in terms of operational efficiency, with reasonably efficient management of inventory and payables, while showing some variability in receivables turnover and working capital turnover.

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	72.41	75.31	77.19	71.05	48.70	52.38	57.11	48.23	46.33	45.32	48.98	45.92	43.31	47.29	46.11	42.73	46.87	46.41	49.71	46.26
Days of sales outstanding (DSO)	days	22.73	24.36	22.72	—	23.07	25.63	24.54	24.09	20.41	19.34	26.28	26.92	23.83	24.41	24.51	29.43	48.92	59.34	30.39	31.74
Number of days of payables	days	71.47	78.78	79.78	—	48.29	50.20	54.10	54.30	51.23	46.50	50.10	47.40	43.45	49.09	45.47	46.27	46.60	46.95	48.64	49.13

Days of inventory on hand (DOH) measures how efficiently a company manages its inventory. ODP Corp's DOH has shown some fluctuations over the periods, ranging from a low of 42.73 days to a high of 77.19 days. In recent quarters, DOH has been steadily increasing, indicating a potential issue with inventory management efficiency.

Days of sales outstanding (DSO) reflects the average number of days it takes for the company to collect revenue after a sale is made. ODP Corp's DSO figures have varied, with a range from 19.34 days to 59.34 days. A lower DSO is generally preferred as it signifies quicker collection of receivables. The company has experienced fluctuations in DSO, with some quarters showing improvement while others indicate a delay in collecting sales revenue.

Number of days of payables measures how long it takes for a company to pay its suppliers. ODP Corp's payables period has also shown variability, ranging from 43.45 days to 79.78 days. A longer payables period can indicate favorable terms with suppliers but may also suggest potential cash flow constraints. The recent increase in payables days may imply a delay in paying suppliers, which could impact relationships and future purchasing terms.

Overall, analyzing ODP Corp's activity ratios reveals fluctuations in inventory management, collection of receivables, and payment to suppliers. It's essential for the company to closely monitor and potentially improve these ratios to enhance operational efficiency and cash flow management.

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	21.79	23.07	23.88	24.39	24.09	23.71	18.26	18.60	18.56	18.49	17.75	17.06	17.83	16.42	16.52	16.19	15.58	15.35	14.91	14.87
Total asset turnover	2.01	2.04	2.09	2.08	2.04	1.90	1.88	1.91	1.82	1.70	1.76	1.66	1.72	1.72	1.72	1.63	1.45	1.46	1.47	1.45

ODP Corp's fixed asset turnover ratio has shown an increasing trend over the last five quarters, indicating that the company is generating more sales revenue relative to its investment in fixed assets. This suggests improved efficiency in utilizing its fixed assets to generate sales.

In comparison, the total asset turnover ratio has also shown a generally increasing trend, suggesting that the company is becoming more efficient in utilizing both fixed and current assets to generate sales. However, the total asset turnover ratio is lower than the fixed asset turnover ratio, which indicates that a significant portion of the company's total assets includes non-operating or non-productive assets.

Overall, the improving trend in both fixed asset turnover and total asset turnover ratios indicates that ODP Corp is effectively managing its assets to generate sales and is becoming more efficient over time. However, the company may want to evaluate its asset composition to ensure optimal utilization of all assets.