REX American Resources Corporation (REX)

Short-term

Turnover ratios

The activity ratios of REX American Resources Corporation reveal important insights into the company's operational efficiency over the past five years.

1. Inventory turnover:
- The inventory turnover ratio has steadily increased from 11.15 in 2020 to 27.24 in 2024.
- This indicates that REX has been more effective in managing its inventory during this period, with products being sold and restocked at a quicker pace.

2. Receivables turnover:
- The receivables turnover ratio has shown fluctuations over the years, with a peak in 2023 at 30.40 and a slight decrease to 28.82 in 2024.
- Overall, the company has been successful in collecting its receivables efficiently, although a downward trend in recent years may require attention.

3. Payables turnover:
- The payables turnover ratio has seen variability, ranging from 17.47 in 2024 to 23.47 in 2023.
- Fluctuations in payables turnover suggest changes in REX's payment practices to suppliers, which can impact cash flow and supplier relationships.

4. Working capital turnover:
- The working capital turnover ratio has increased from 1.74 in 2020 to 2.16 in 2024.
- This indicates that REX has been utilizing its working capital more effectively to generate revenue, reflecting improved efficiency in managing its short-term assets and liabilities.

Overall, REX American Resources Corporation has demonstrated improvements in its operational efficiency as shown by the increasing inventory turnover and working capital turnover ratios. However, fluctuations in receivables and payables turnover ratios suggest the need for continued monitoring and potential adjustments to maintain a balanced and efficient operational cycle.

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Average number of days

The Days of Inventory on Hand (DOH) for REX American Resources Corporation have shown a decreasing trend over the past five years, indicating that the company has been managing its inventory more efficiently to convert it into sales. The decline from 32.74 days in 2020 to 13.40 days in 2024 is a positive sign as it suggests that the company is holding less inventory on average.

The Days of Sales Outstanding (DSO) have also improved over the years, showing a decreasing trend from 16.60 days in 2020 to 12.66 days in 2024. This implies that the company is collecting payments from its customers more quickly, which could boost its liquidity and cash flow.

On the other hand, the Number of Days of Payables has shown fluctuation but has remained relatively stable over the five-year period, ranging from 15.55 days in 2023 to 20.89 days in 2024. This suggests that the company has been consistent in managing its payables and maintaining vendor relationships.

Overall, the trends in the activity ratios indicate that REX American Resources Corporation has been effectively managing its working capital by reducing inventory levels, improving collection from customers, and maintaining stability in its payables. These trends reflect positively on the company's operational efficiency and financial health.

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Long-term

The fixed asset turnover ratio measures how efficiently a company generates revenue from its fixed assets. REX American Resources Corporation's fixed asset turnover has fluctuated over the past five years. The ratio decreased from 6.31 in 2023 to 5.36 in 2024, indicating a slight decrease in the efficiency of generating revenue from fixed assets. However, the company's fixed asset turnover remains relatively high, suggesting that REX American Resources Corporation effectively utilizes its fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects how efficiently a company generates revenue from all its assets. REX American Resources Corporation's total asset turnover also varies over the five-year period. The ratio declined from 1.48 in 2023 to 1.25 in 2024, indicating a decrease in the efficiency of generating sales from total assets. Despite this decrease, the company's total asset turnover remains above 1, implying that REX American Resources Corporation is effectively using its total assets to generate revenue, albeit at a slightly lower rate compared to the previous year.

In summary, although there have been fluctuations in both fixed asset turnover and total asset turnover ratios for REX American Resources Corporation, the company continues to demonstrate efficient utilization of its assets to generate revenue. These ratios provide insights into the company's operational efficiency and asset management strategies over the past five years.