Ryder System Inc (R)

Short-term

Turnover ratios

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently Ryder System, Inc. manages its inventory.
- In 2022, the inventory turnover ratio was 123.35, showing a significant increase from the previous year. This indicates that Ryder System was able to sell and replace its inventory 123.35 times during the year.
- The consistently high inventory turnover ratios over the years suggest effective inventory management practices, leading to a quick turnover of inventory.

2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently Ryder System collects its accounts receivable.
- In 2022, the receivables turnover ratio was 7.46, a slight decrease from the previous year. This implies that on average, Ryder System collected its receivables 7.46 times during the year.
- The consistent and relatively stable receivables turnover ratios over the years suggest that Ryder System has been successful in managing its accounts receivable efficiently.

3. Payables Turnover:
- The payables turnover ratio reflects how quickly Ryder System pays its suppliers.
- In 2022, the payables turnover ratio was 12.54, showing a slight decrease from the previous year. This indicates that Ryder System paid its suppliers 12.54 times during the year on average.
- The stable payables turnover ratios over the years suggest that Ryder System has been maintaining consistent payment terms with its suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently Ryder System utilizes its working capital to generate revenue.
- Data for working capital turnover is not provided for the years shown. Without this data, it is difficult to evaluate how effectively Ryder System has been utilizing its working capital to generate sales.

Overall, based on the analysis of activity ratios, Ryder System, Inc. appears to have efficient inventory management practices, consistent accounts receivable collection, and stable payment terms with suppliers. Further details on the working capital turnover ratio would provide a more comprehensive analysis of the company's overall operational efficiency.

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Average number of days

Ryder System, Inc.'s activity ratios provide insights into its efficiency in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
Ryder's days of inventory on hand have fluctuated over the past five years, with the highest level recorded in 2019 at 3.90 days and the lowest in 2023 at an unknown value. A decrease in DOH generally indicates better inventory management efficiency as the company is selling goods quicker or holding less inventory. It would be helpful to know the 2023 data to assess the trend more accurately.

2. Days of Sales Outstanding (DSO):
The days of sales outstanding have shown some variability, with the highest level in 2021 at 55.33 days and the lowest in 2022 at 48.93 days. A lower DSO suggests faster collections, which is a positive sign as it indicates that Ryder is efficiently converting credit sales into cash. However, the 2023 data would be needed to assess the trend for the most recent year.

3. Number of Days of Payables:
Ryder's number of days of payables has generally increased over the past five years, reaching a peak in 2021 at 34.72 days and the lowest in 2023 at 32.06 days. An increase in days of payables may indicate a more extended time to pay suppliers, potentially improving cash flow by allowing the company to hold onto cash longer. However, a very high days of payables figure may also signal strained relationships with suppliers.

Overall, the analysis of Ryder System, Inc.'s activity ratios suggests that the company has made improvements in managing inventory and collecting receivables efficiently, but the trend in payables is slightly increasing. Further data for 2023 would be necessary to provide a complete picture of the company's recent performance in these areas.

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Long-term

Ryder System, Inc.'s long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate revenue over the years. The fixed asset turnover ratio has shown an overall increasing trend from 2019 to 2022, indicating that the company has become more efficient in generating revenue from its fixed assets. However, there was a slight decrease in 2023.

On the other hand, the total asset turnover ratio reflects a similar pattern of improvement, albeit at a slower pace compared to the fixed asset turnover. The company's ability to generate revenue from all its assets has been increasing over the five-year period, indicating improved efficiency in asset utilization.

Overall, both the fixed asset turnover and total asset turnover ratios suggest that Ryder System, Inc. has been effectively using its long-term assets to generate sales, with a notable improvement in recent years. This trend is a positive sign of operational efficiency and effective management of the company's asset base.