Post Holdings Inc (POST)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.47 | 7.98 | 7.45 | 5.44 | 6.71 |
| Receivables turnover | 13.64 | 10.75 | 11.01 | 10.67 | 12.76 |
| Payables turnover | 13.85 | 9.68 | 9.25 | 8.87 | 9.83 |
| Working capital turnover | 10.38 | 4.18 | 4.80 | 3.59 | 4.29 |
The activity ratios of Post Holdings Inc indicate the efficiency of the company in managing its inventory, receivables, payables, and working capital over the past five years.
The inventory turnover ratio has shown a fluctuating trend, decreasing from 7.42 in 2021 to 6.47 in 2023. This suggests that the company's ability to sell its inventory has slightly decreased over the years.
Conversely, the receivables turnover ratio has been increasing steadily, from 11.24 in 2021 to 13.64 in 2023, indicating that the company has been more effective in collecting payments from its customers.
The payables turnover ratio has also shown a consistent increase, reaching 13.90 in 2023 from 9.34 in 2021, reflecting the company's improved efficiency in paying its suppliers.
The working capital turnover ratio has exhibited a fluctuating trend, with a significant increase from 2019 to 2020 and another substantial increase from 2022 to 2023. This indicates that the company has been using its working capital more efficiently to generate sales.
In summary, while the inventory turnover has slightly decreased, the receivables, payables, and working capital turnovers have all improved, reflecting a positive trend in the efficiency of Post Holdings Inc's operational activities over the past five years.
Average number of days
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 56.43 | 45.72 | 48.97 | 67.08 | 54.42 |
| Days of sales outstanding (DSO) | days | 26.75 | 33.95 | 33.15 | 34.21 | 28.60 |
| Number of days of payables | days | 26.35 | 37.69 | 39.47 | 41.17 | 37.13 |
Days of Inventory on Hand (DOH) indicates how many days it takes for the company to turn its inventory into sales. Over the past five years, Post Holdings Inc's DOH has fluctuated, increasing from 45.72 days in 2022 to 56.43 days in 2023. The increase in DOH suggests that the company is taking longer to sell its inventory, which could tie up working capital.
Days of Sales Outstanding (DSO) measures the average number of days it takes for the company to collect payment after making a sale. Post Holdings Inc's DSO has shown variability, decreasing from 33.95 days in 2022 to 26.75 days in 2023. The decrease indicates that the company is collecting payments more efficiently.
Number of Days of Payables indicates the average number of days the company takes to pay its suppliers. Post Holdings Inc's payables days have fluctuated over the past five years, decreasing from 33.26 days in 2022 to 26.25 days in 2023. A lower number of payables days could imply that the company is managing its payables more effectively.
Taken together, these activity ratios suggest that Post Holdings Inc has shown improvement in collecting payments from customers and managing payables, although there has been an increase in the days of inventory on hand, indicating potential issues with inventory management.
Long-term
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 3.46 | 3.34 | 2.72 | 2.65 | 3.27 |
| Total asset turnover | 0.60 | 0.52 | 0.40 | 0.39 | 0.48 |
The fixed asset turnover ratio for Post Holdings Inc has shown a generally positive trend over the past five years, indicating an improvement in the company's ability to generate sales from its fixed assets. The ratio has increased from 3.27 in 2019 to 3.46 in 2023, suggesting more efficient utilization of the company's property, plant, and equipment to generate revenue.
Similarly, the total asset turnover ratio has also exhibited a positive trend, increasing from 0.48 in 2019 to 0.60 in 2023. This indicates that the company has become more efficient in generating sales from its total assets over the years.
Overall, the long-term activity ratios reflect a favorable trend, suggesting that Post Holdings Inc has been effectively managing and leveraging its assets to drive revenue growth. This improvement in asset turnover ratios indicates enhanced operational efficiency and effective utilization of resources, which could potentially lead to improved financial performance and profitability.