QuinStreet Inc (QNST)

Short-term

Turnover ratios

The activity ratios for QuinStreet Inc, as provided, offer insights into the efficiency with which the company manages its assets and liabilities over the period from June 30, 2021, to June 30, 2025.

Inventory Turnover:
The inventory turnover ratio is available for June 30, 2021 (68.77) and June 30, 2022 (122.14), showing a significant increase, which suggests an improved efficiency in utilizing inventory or possibly a reduction in inventory levels relative to sales. The data for subsequent years is not provided, limiting the ability to analyze longer-term trends.

Receivables Turnover:
This ratio shows a steady upward trend from 6.58 in June 2021 to 8.57 in June 2023, indicating that QuinStreet Inc has become more effective at collecting receivables within its credit periods. However, in subsequent periods, there is a decline to 5.49 in June 2024 before rising again slightly to 8.05 in June 2025, reflecting some variability in receivables management that warrants further investigation.

Payables Turnover:
The payables turnover ratio demonstrates a consistent upward trend across the period, increasing from 11.23 in June 2021 to 14.03 in June 2023, and further to 15.79 in June 2025. This trend indicates an increasing frequency of paying off payables, which could suggest improved liquidity management or strategic attempts to extend payables periods while maintaining vendor relationships.

Working Capital Turnover:
This ratio has improved significantly over the observed period, rising from 6.39 in June 2021 to a peak of 14.37 in June 2024 before slightly declining to 13.26 in June 2025. The increase signifies that the company has been generating more sales relative to its working capital, reflecting greater operational efficiency or more effective utilization of working capital resources.

Overall, the analysis of QuinStreet Inc.’s activity ratios indicates an evolving pattern of operational efficiency. There is a noticeable enhancement in receivables and working capital management, with increasing ratios suggesting better asset utilization. The inventory turnover experienced a substantial spike but lacks continuous data beyond June 2022 for a comprehensive trend assessment. The rising payables turnover highlights improved payables management. These trends collectively point towards a strategic focus on optimizing asset and liability management, although some fluctuations in receivable collection periods suggest areas for ongoing improvement.

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Average number of days

The activity ratios of QuinStreet Inc, focusing on inventory management, receivables collection, and payables period, reveal noteworthy trends over the analyzed period.

Days of Inventory on Hand (DOH):
In the fiscal year ending June 30, 2021, the company maintained an inventory turnover period of approximately 5.31 days. This significantly decreased to 2.99 days by June 30, 2022, indicating a more efficient inventory management or a reduction in inventory levels. Data for subsequent years (June 30, 2023, and beyond) is unavailable, preventing assessment of longer-term trends or current inventory practices.

Days of Sales Outstanding (DSO):
The receivables collection period decreased from about 55.48 days in June 2021 to 51.06 days in June 2022, showcasing improved receivables management. This trend continued with a further reduction to 42.59 days by June 30, 2023, reflecting enhanced collection efficiency. However, a notable increase occurred in the fiscal year ending June 30, 2024, with DSO rising to 66.54 days, suggesting a deterioration in receivables collection or changes in credit policies. Subsequently, the DSO decreased again to 45.32 days by June 30, 2025, indicating some recovery in collection periods.

Number of Days of Payables:
The company's payment period to suppliers decreased from 32.50 days in June 2021 to 29.30 days in June 2022, suggesting a slight tightening of payment terms or increased cash flow pressure. The payable period then contracted further to 26.02 days by June 30, 2023. In the following years, the payables period fluctuated, increasing to 31.02 days in June 2024 before decreasing again to 23.12 days by June 30, 2025, indicating variations in payment policies or working capital management.

Overall, the activity ratios suggest that QuinStreet Inc has experienced periods of operational efficiency, notably in reducing receivables and inventory days in earlier years, although some fluctuations have been observed, especially in receivables collection practices around 2024. The pattern of payables indicates efforts to adjust payment cycles, possibly to optimize cash flow. The longer DSO in 2024 warrants further investigation to understand credit policy changes or customer payment behaviors.

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Long-term

The long-term activity ratios for QuinStreet Inc, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, reveal insights into the company's efficiency in utilizing its assets over the analyzed periods.

The Fixed Asset Turnover ratio experienced a decline from 36.13 on June 30, 2022, to 28.62 on June 30, 2023. Previously, it increased from 32.44 in June 2021. This downward trend indicates that the company's fixed assets became less efficient in generating sales during this period, possibly reflecting capital investments that have yet to fully translate into revenue or a strategic shift in asset utilization.

In contrast, the Total Asset Turnover ratio shows a consistent upward trajectory, increasing from 1.29 in June 2021 to 1.39 in June 2022, and further to 1.72 in June 2023. It continues to rise slightly to 1.66 in June 2024 and then shows a significant leap to 2.54 by June 2025. This pattern suggests that overall, the company has been improving its efficiency in using its total assets to generate sales over time, especially in the most recent fiscal year.

In summary, while the fixed assets are used less efficiently relative to prior years, the company's total asset efficiency has improved substantially. This could reflect a strategic shift towards leveraging more current or intangible assets, or a reorganization that optimizes asset deployment across the enterprise. The divergence in trends between fixed and total asset turnover ratios warrants further analysis to understand the underlying factors, such as changes in asset composition, investment strategies, or operational efficiencies.