Ryder System Inc (R)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 19.04 | 15.72 | 15.41 |
| Receivables turnover | 6.79 | 6.87 | 7.46 | 6.60 | 7.12 |
| Payables turnover | 1.88 | 1.81 | 1.94 | 1.45 | 1.72 |
| Working capital turnover | — | — | — | — | — |
Ryder System Inc's inventory turnover has shown a consistent improvement over the years, rising from 15.41 in 2020 to 19.04 in 2022. This indicates that the company is managing its inventory more efficiently, with products being sold and replenished at a faster rate.
The receivables turnover ratio, however, displays some fluctuations, decreasing from 7.12 in 2020 to 6.60 in 2021, then increasing to 7.46 in 2022 before dropping to 6.87 in 2023. This suggests that Ryder System Inc may have faced challenges in collecting payments from customers in certain periods.
In terms of payables turnover, the company's performance has been somewhat stable, ranging from 1.45 in 2021 to 1.94 in 2022. A higher payables turnover ratio indicates that Ryder System Inc is taking longer to pay its suppliers, which could be beneficial for managing cash flow and working capital.
Finally, the working capital turnover ratio data is not available for any of the years provided, indicating that we are unable to analyze how effectively the company is utilizing its working capital to generate sales.
Overall, Ryder System Inc's activity ratios reflect a positive trend in inventory management and a relatively stable performance in managing receivables and payables turnover, but more information would be needed to evaluate its working capital turnover effectively.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 19.17 | 23.22 | 23.69 |
| Days of sales outstanding (DSO) | days | 53.76 | 53.09 | 48.93 | 55.34 | 51.25 |
| Number of days of payables | days | 194.10 | 201.76 | 188.52 | 251.72 | 211.90 |
Activity ratios are used to measure how efficiently a company is managing its assets and liabilities to generate revenue. Let's analyze the activity ratios for Ryder System Inc based on the provided data:
1. Days of Inventory on Hand (DOH):
- The DOH ratio indicates how many days it takes for a company to sell its inventory. A lower DOH indicates efficient inventory management.
- Ryder System Inc's DOH has decreased from 23.69 days in 2020 to 19.17 days in 2022, showing an improvement in managing inventory levels efficiently.
- However, there is no data available for 2023 and 2024, which limits the ability to assess the trend further.
2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for a company to collect payments from its customers. A lower DSO indicates faster collection of receivables.
- Ryder System Inc's DSO increased from 51.25 days in 2020 to 55.34 days in 2021 but then decreased to 48.93 days in 2022, indicating a better receivables collection efficiency in 2022.
- However, the DSO increased again to 53.09 days in 2023 and 53.76 days in 2024, which may suggest a slower collection of receivables in those years.
3. Number of Days of Payables:
- This ratio measures how long a company takes to pay its suppliers. A longer number of days of payables may indicate better cash flow management but could also strain relationships with suppliers.
- Ryder System Inc's number of days of payables has fluctuated over the years, from 211.90 days in 2020 to 188.52 days in 2022, before increasing slightly to 194.10 days in 2024.
- The decrease in 2022 and the subsequent increase in 2024 may suggest changes in payment terms and supplier relationships.
In conclusion, Ryder System Inc has shown improvements in managing inventory efficiency and payables over the years, but there have been fluctuations in receivables collection efficiency. Further analysis and comparison with industry benchmarks would provide a more comprehensive assessment of the company's activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 11.39 | 10.08 | 10.46 | 9.81 | 9.08 |
| Total asset turnover | 0.76 | 0.75 | 0.83 | 0.70 | 0.65 |
Ryder System Inc's long-term activity ratios indicate how efficiently the company is utilizing its assets to generate sales.
1. Fixed Asset Turnover: The fixed asset turnover ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. An increasing trend in this ratio over the years, from 9.08 in 2020 to 11.39 in 2024, indicates that Ryder System Inc has been able to generate more revenue from its fixed assets. This suggests that the company is effectively using its long-term assets to drive sales.
2. Total Asset Turnover: The total asset turnover ratio reflects how well the company is utilizing all its assets to generate revenue. While there was an increase in this ratio from 0.65 in 2020 to 0.83 in 2022, it declined to 0.76 in 2024. This indicates that the company's overall efficiency in generating revenue from its total assets improved initially but declined in 2024.
In conclusion, Ryder System Inc has shown improvement in its efficiency in generating revenue from its fixed assets over the years. However, the overall efficiency in utilizing all assets to generate revenue has shown some fluctuations. Monitoring these ratios can help stakeholders assess the company's operational efficiency and asset utilization strategies.