QuinStreet Inc (QNST)
Activity ratios
Short-term
Turnover ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 122.14 | 68.77 | 34.21 |
| Receivables turnover | 5.49 | 8.56 | 7.14 | 6.32 | 7.18 |
| Payables turnover | 11.77 | 14.03 | 12.46 | 11.23 | 11.91 |
| Working capital turnover | 14.37 | 9.46 | 7.95 | 6.39 | 4.92 |
QuinStreet Inc's activity ratios provide insight into how efficiently the company manages its assets and liabilities.
1. Inventory Turnover: The company did not report inventory turnover for the most recent two periods. However, the previous years show a positive trend, with significant improvements in 2022 and 2023 compared to 2020 and 2021. This indicates that QuinStreet has been more effective in selling its inventory in recent years.
2. Receivables Turnover: The receivables turnover ratio has been fluctuating over the past five years, with a peak in 2023 and a decrease in 2024. This suggests that the company may have been collecting its accounts receivables more efficiently in 2023 compared to other years. A lower ratio in 2024 could indicate a longer collection period for outstanding receivables.
3. Payables Turnover: The payables turnover ratio has also fluctuated over the years, with a general decreasing trend. This suggests that QuinStreet is taking longer to pay its suppliers, which could impact its relationships with vendors if not managed effectively.
4. Working Capital Turnover: The working capital turnover ratio has shown steady improvement over the five-year period. This indicates that QuinStreet is generating more revenue from its working capital, reflecting improved efficiency in managing its current assets and liabilities.
Overall, QuinStreet's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the years. The company may need to focus on streamlining its operations to improve turnover ratios and optimize its working capital management further.
Average number of days
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 2.99 | 5.31 | 10.67 |
| Days of sales outstanding (DSO) | days | 66.54 | 42.66 | 51.14 | 57.71 | 50.82 |
| Number of days of payables | days | 31.02 | 26.02 | 29.30 | 32.50 | 30.64 |
QuinStreet Inc's activity ratios provide insight into the efficiency of the company's operations and management of its working capital.
Firstly, the Days of Inventory on Hand (DOH) decreased over the years, from 10.67 days in 2020 to 2.99 days in 2022. This indicates that the company has been managing its inventory more efficiently, possibly by reducing excess inventory levels or improving inventory turnover.
Secondly, the Days of Sales Outstanding (DSO) fluctuated over the years but generally decreased from 57.71 days in 2021 to 42.66 days in 2023, suggesting that QuinStreet Inc has been collecting its accounts receivable more quickly. A lower DSO indicates that the company is efficient in collecting payments from customers, which can improve cash flow and liquidity.
Lastly, the Number of Days of Payables remained relatively stable over the years, indicating that the company's payment terms with suppliers have not changed significantly. It increased slightly from 30.64 days in 2020 to 31.02 days in 2024.
Overall, these activity ratios suggest that QuinStreet Inc has been effectively managing its working capital by optimizing inventory levels, improving accounts receivable collection, and maintaining stable payment terms with suppliers.
Long-term
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 30.90 | 34.67 | 62.52 | 84.46 | 86.68 |
| Total asset turnover | 1.66 | 1.72 | 1.39 | 1.29 | 1.37 |
QuinStreet Inc's long-term activity ratios provide insights into the efficiency of the company's utilization of its fixed assets and total assets to generate revenue over the past five years.
The fixed asset turnover ratio has shown a declining trend over the period, indicating that the company's ability to generate revenue from its fixed assets has decreased. A significant drop from 86.68 in 2020 to 30.90 in 2024 suggests a potential underutilization or lower productivity of fixed assets in generating sales.
On the other hand, the total asset turnover ratio has fluctuated over the years but generally demonstrates an acceptable efficiency in generating sales from total assets. While the ratio peaked at 1.72 in 2023, it decreased to 1.66 in 2024 but remained relatively stable. This implies a consistent level of efficiency in utilizing both fixed and current assets to drive revenue for the company.
Overall, the declining trend in fixed asset turnover raises concerns about the company's efficiency in utilizing its fixed assets effectively. It may warrant further investigation into potential reasons behind the decrease and strategies to improve the productivity of fixed assets to enhance overall performance in the long term.