QuinStreet Inc (QNST)

Short-term

Turnover ratios

The activity ratios of QuinStreet Inc., specifically the inventory turnover, receivables turnover, payables turnover, and working capital turnover, reveal notable trends and characteristics over the periods analyzed.

Inventory Turnover:
The company exhibits minimal or no inventory activity for most periods, as indicated by the consistently unavailable inventory turnover ratios, which are marked as missing ("—") for all periods except June 30, 2022, where it records a value of 122.14. This exceptionally high ratio suggests an extremely rapid inventory turnover when inventory is reported, indicative of a just-in-time inventory management approach or negligible inventory holdings typical in service-oriented or digital business models. The absence of data during other periods further implies that inventory management is not a central component of QuinStreet’s operations.

Receivables Turnover:
Throughout the observed periods, receivables turnover fluctuates, reflecting changes in the efficiency of collecting accounts receivable. The ratio decreased from approximately 7.28-7.29 in late 2020 to a low of 4.42 around the first quarter of 2024, indicating a potential slowdown in collection efficiency during that period. Subsequently, the ratio rebounds to approximately 8.05 by mid-2025, suggesting an improvement in collections. Higher receivables turnover ratios imply faster collection periods, reducing the days sales outstanding; conversely, lower ratios, such as during early 2024, could point to extended collection periods or credit policies leading to delayed cash inflows.

Payables Turnover:
The payables turnover ratio exhibits variability across the periods, with some periods showing steady values around 12-13, indicating a consistent pace in paying suppliers. Notably, the ratio peaks at 15.08 in September 2023 and again at 15.21 in December 2024, which suggests that the company has expedited its payments to suppliers during these times. Conversely, lower ratios like 9.39 in September 2020 suggest a more extended period to settle payables initially, although subsequent periods display an overall increasing trend, potentially reflecting improved cash management or negotiated payment terms.

Working Capital Turnover:
The working capital turnover ratio shows a general upward trend from approximately 6.27 in September 2020 to a high of 15.83 in September 2024, indicating that the company has become more efficient in utilizing its working capital to generate sales or revenue. This suggests improved operational efficiency, possibly due to better receivables collection, optimized payables, or a more effective management of current assets and liabilities. The ratio’s sustained increase highlights a positive trend toward leveraging working capital more effectively.

Overall Interpretation:
QuinStreet Inc.'s activity ratios illustrate a company with minimal physical inventory holdings, consistent collection and payment practices, and notable improvements in working capital efficiency over time. The extremely high inventory turnover in June 2022 indicates a significant moment of operational efficiency or a reporting anomaly, but overall, the ratios suggest a focus on optimizing receivables and payables management and enhancing working capital utilization. The patterns reflect a mature operation increasingly adept at managing its short-term assets and liabilities to support revenue generation.

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Average number of days

The activity ratios for QuinStreet Inc. over the specified period reveal a notable pattern primarily characterized by the clarity of the Days of Inventory on Hand (DOH) and variable Days of Sales Outstanding (DSO) alongside relatively stable Days of Payables.

The DOH data indicates that the company maintained a very rapid inventory turnover rate, with only a single reported value of 2.99 days on June 30, 2022. The absence of DOH data for all other periods suggests that inventory management is minimal, consistent with the company's digital and service-oriented operations, which typically do not require significant physical inventory. This extremely low or unreported DOH aligns with a business model that operates primarily on digital services and advertising revenue, reducing the need for inventory.

The DSO demonstrates fluctuation over time, with an initial average around 50 days in 2020 and early 2021, implying that it typically collects receivables approximately 50 days after invoicing. Notably, there is a significant increase in DSO starting March 2023, reaching 64.59 days, indicating a slowdown in receivables collection during that period. Subsequent periods show a reduction, with values generally hovering around the mid-40s to mid-50s days, suggesting some improvement in collection efficiency. The highest recorded DSO was 82.56 days in September 2024, implying stretched receivables that could impact cash flow, though this appears to be an anomaly considering the overall trend.

Regarding the Days of Payables, the company appears to manage its payables efficiently, with figures mainly under 30 days. The average ranges from approximately 21.92 days in March 2025 to around 31.42 days in September 2024. These relatively consistent periods of payment indicate a disciplined approach to managing obligations, optimizing cash flow, and possibly leveraging supplier credit terms. The slight reductions toward the end of the period suggest a tendency to shorten payable periods, potentially reflecting tighter liquidity management or improved operational efficiency.

Overall, QuinStreet’s activity ratios suggest a lean inventory profile consistent with a digital business, combined with a receivables collection cycle that experienced some periods of elongation but generally remained within a moderate range. The manageable payables cycle complements this pattern, indicating effective working capital management during the analyzed timeframe.

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Long-term

The analysis of QuinStreet Inc’s long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, reveals notable trends and insights over the provided periods.

Fixed Asset Turnover:
This ratio measures how efficiently the company utilizes its fixed assets (property, plant, equipment) to generate sales. The data indicates that the ratio experienced a decline from 82.23 in the quarter ending September 30, 2020, to a low of 32.44 during the quarter ending June 30, 2021. Following this trough, there was a modest recovery, with values fluctuating between approximately 33.59 in December 2021 and 66.12 in March 2022. However, the ratio subsequently declined again, reaching around 28.62 by June 30, 2023. The absence of data beyond this point precludes further assessment of recent trends, but the overall pattern suggests periods of both efficiency and reduction in fixed asset utilization.

Total Asset Turnover:
This ratio assesses the company's ability to generate sales from all its assets. Historically, it demonstrated steady growth from 1.21 on September 30, 2020, to approximately 1.36-1.40 through September 2022, indicating improving efficiency. From late 2022 onwards, there was a pronounced upward movement, with the ratio increasing from approximately 1.47 in December 2022 to 2.54 by June 30, 2025. This substantial increase implies that QuinStreet has become increasingly effective in using its total assets to generate sales over the period.

Summary:
The data suggests that QuinStreet Inc’s overall asset utilization in generating sales has improved substantially from late 2022 onward, reflecting potentially better operational efficiency or strategic asset management. Conversely, the fixed asset turnover displays greater volatility, with initial high ratios decreasing significantly in 2021 and remaining relatively low in subsequent periods. This disparity could indicate a shift in asset composition or changes in fixed asset utilization efficiency within the company. The upward trend in total asset turnover signals positive development in overall operational effectiveness, whereas the fluctuations in fixed asset turnover point to varying fixed asset management or changes in asset base structure over time.