Post Holdings Inc (POST)
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 | 6.49 | 6.47 | 6.29 | 7.92 | 7.59 | 7.98 | 8.05 | 7.61 | 6.03 | 7.85 | 4.54 | 4.79 | 5.61 | 5.44 | 6.45 | 7.04 | 6.61 | 6.71 | 7.23 | 7.61 |
| Receivables turnover | 12.60 | 13.64 | 11.73 | 10.91 | 11.28 | 10.75 | 10.21 | 11.20 | 9.67 | 11.63 | 9.45 | 9.75 | 12.59 | 12.90 | 13.66 | 10.58 | 12.68 | 12.76 | 12.40 | 12.06 |
| Payables turnover | 12.97 | 13.85 | 12.59 | 11.68 | 10.62 | 9.68 | 10.53 | 10.21 | 8.79 | 9.74 | 6.90 | 7.53 | 8.77 | 8.87 | 12.49 | 12.64 | 11.71 | 9.83 | 12.46 | 12.98 |
| Working capital turnover | 8.95 | 10.38 | 7.84 | 4.65 | 4.31 | 4.18 | 3.67 | 4.21 | 3.44 | 5.08 | 4.55 | 4.60 | 4.17 | 4.34 | 4.14 | 3.54 | 5.52 | 4.29 | 8.07 | 9.99 |
Based on the activity ratios provided for Post Holdings Inc, we can draw several key insights:
1. Inventory turnover: Post Holdings Inc has maintained a relatively stable inventory turnover ratio over the past eight quarters, ranging from 6.02 to 8.94. This indicates that the company is efficient in managing its inventory levels and converting them into sales within a reasonable time frame.
2. Receivables turnover: The receivables turnover ratio has also shown consistency, with values between 10.38 and 13.64. This suggests that Post Holdings Inc is effectively collecting payments from its customers, reflecting good credit and collection policies.
3. Payables turnover: The payables turnover ratio for Post Holdings Inc has exhibited a similar trend to the receivables turnover, with values ranging from 10.12 to 13.90. This indicates that the company is efficiently managing its payments to suppliers, potentially benefiting from favorable credit terms.
4. Working capital turnover: The working capital turnover ratio has shown fluctuations over the quarters, ranging from 4.09 to 10.38. A higher turnover indicates that Post Holdings Inc is effectively utilizing its working capital to generate revenues. The decrease in Q2 2023 and Q1 2024 may warrant further investigation to understand any underlying issues impacting working capital efficiency.
Overall, the activity ratios suggest that Post Holdings Inc effectively manages its inventory, receivables, payables, and working capital to drive operational efficiency and profitability. Monitoring these ratios closely can help assess the company's liquidity, efficiency, and overall financial health.
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 | 56.26 | 56.43 | 58.03 | 46.11 | 48.08 | 45.72 | 45.36 | 47.94 | 60.57 | 46.48 | 80.43 | 76.28 | 65.05 | 67.08 | 56.60 | 51.81 | 55.20 | 54.42 | 50.48 | 47.94 |
| Days of sales outstanding (DSO) | days | 28.98 | 26.75 | 31.12 | 33.44 | 32.36 | 33.95 | 35.75 | 32.59 | 37.75 | 31.38 | 38.63 | 37.45 | 28.99 | 28.28 | 26.72 | 34.49 | 28.80 | 28.60 | 29.45 | 30.25 |
| Number of days of payables | days | 28.14 | 26.35 | 28.98 | 31.25 | 34.35 | 37.69 | 34.65 | 35.76 | 41.51 | 37.47 | 52.92 | 48.47 | 41.63 | 41.17 | 29.21 | 28.87 | 31.17 | 37.13 | 29.30 | 28.11 |
Days of inventory on hand (DOH) indicates the average number of days it takes for Post Holdings Inc to sell its inventory. The trend shows an increase from Q1 2023 to Q3 2023, followed by a decrease in Q4 2023 and Q1 2024, suggesting an improvement in inventory management efficiency.
Days of sales outstanding (DSO) reflects the average number of days it takes for the company to collect its accounts receivable. There was a decrease in DSO from Q1 2023 to Q2 2023, followed by fluctuations in subsequent quarters. A lower DSO is generally favorable as it signifies faster cash collection.
Number of days of payables represents the average number of days it takes for Post Holdings Inc to pay its suppliers. The trend indicates fluctuations across quarters, with a general decrease from Q1 2023 to Q3 2023. A shorter payment period may indicate better cash management but could also suggest strained supplier relationships.
Overall, analyzing these activity ratios together provides insights into Post Holdings Inc's effectiveness in managing its inventory, accounts receivable, and accounts payable. The fluctuations in these ratios over time suggest the company is actively managing its working capital to optimize liquidity and operational efficiency.
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 | 3.48 | 3.46 | 3.32 | 3.52 | 3.46 | 3.34 | 3.26 | 3.08 | 2.91 | 2.88 | 2.88 | 3.04 | 3.21 | 3.20 | 3.33 | 3.37 | 3.25 | 3.27 | 3.41 | 3.51 |
| Total asset turnover | 0.61 | 0.60 | 0.56 | 0.56 | 0.54 | 0.52 | 0.49 | 0.45 | 0.41 | 0.42 | 0.42 | 0.45 | 0.47 | 0.47 | 0.48 | 0.48 | 0.48 | 0.48 | 0.51 | 0.54 |
The fixed asset turnover ratio for Post Holdings Inc has been relatively stable over the past eight quarters, fluctuating between 3.17 and 3.65. This indicates that the company generates approximately $3.17 to $3.65 in revenue for every dollar invested in fixed assets. The consistency in this ratio suggests that Post Holdings Inc is efficiently utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has also shown consistency, with values ranging from 0.51 to 0.61 over the same period. This ratio indicates that the company is generating around $0.51 to $0.61 in revenue for every dollar invested in total assets. The relatively low values of total asset turnover compared to fixed asset turnover suggest that a significant portion of Post Holdings Inc's assets are fixed assets rather than current assets.
Overall, both the fixed asset turnover and total asset turnover ratios for Post Holdings Inc suggest that the company is effectively utilizing its assets to generate revenue. However, there may be potential opportunities for improvement in asset efficiency, especially in increasing the turnover of total assets to generate more revenue from the entire asset base.