REX American Resources Corporation (REX)

Short-term

Turnover ratios

The inventory turnover ratio for REX American Resources Corporation has shown an improving trend over the last few years, increasing from 9.59 in January 31, 2021, to 17.40 in January 31, 2025. This indicates that the company is selling its inventory more efficiently, with a higher turnover rate in recent years.

The receivables turnover ratio data is not available for the provided years, limiting our ability to assess the efficiency of REX American Resources Corporation in collecting its accounts receivable.

Similarly, data for the payables turnover ratio is not provided, so we cannot evaluate how quickly the company pays its suppliers.

The working capital turnover ratio has fluctuated over the years, with a peak of 2.69 in January 31, 2023, and a low of 1.63 in January 31, 2021. This ratio measures how effectively the company is using its working capital to generate revenue, and the fluctuation in this ratio suggests varying efficiency in utilizing its working capital resources for revenue generation.

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Average number of days

Based on the provided data, REX American Resources Corporation's activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The DOH indicates the average number of days it takes for the company to sell its inventory. A lower DOH is generally favorable as it suggests faster inventory turnover.
- REX American Resources Corporation's DOH has decreased from 38.05 days on January 31, 2021, to 20.98 days on January 31, 2025.
- The decreasing trend in DOH indicates that the company has been managing its inventory more efficiently over the years, potentially leading to lower carrying costs and better liquidity.

2. Days of Sales Outstanding (DSO):
- DSO reveals the average number of days it takes for the company to collect payments from its customers. A lower DSO is preferred as it signifies faster cash collection.
- The data indicates that DSO is not available for the years provided, which may suggest that REX American Resources Corporation's data on accounts receivable and sales information for those years is incomplete or not disclosed.
- Without data on DSO, it is challenging to assess the efficiency of the company in collecting receivables or managing its credit terms with customers.

3. Number of Days of Payables:
- The number of days of payables shows the average number of days the company takes to pay its suppliers. A longer period may indicate favorable payment terms extended to the company.
- Similar to DSO, the data does not provide information on the number of days of payables for the years specified.
- The absence of information on payables days limits the ability to evaluate the company's payment practices and its relationships with suppliers.

In conclusion, while the data for the Days of Inventory on Hand (DOH) shows a positive trend towards more efficient inventory management over the years, the lack of information on Days of Sales Outstanding (DSO) and Number of Days of Payables limits a comprehensive assessment of REX American Resources Corporation's overall activity ratios related to receivables and payables management.

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Long-term

The Fixed Asset Turnover ratio for REX American Resources Corporation has shown a significant improvement over the period from January 31, 2021, to January 31, 2023, increasing from 2.25 to 5.67. This indicates that the company is generating more revenue relative to its fixed assets during this period. However, the data for January 31, 2024, and January 31, 2025, is not available for analysis.

The Total Asset Turnover ratio for the company experienced fluctuations during the same period, with an increase from 0.78 on January 31, 2021, to 1.48 on January 31, 2023. This suggests that REX American Resources Corporation has been more efficient in utilizing its total assets to generate sales. However, there was a slight decline in the ratio to 1.25 on January 31, 2024, followed by a more noticeable decrease to 0.89 on January 31, 2025, indicating potential challenges in asset utilization.

Overall, the Fixed Asset Turnover and Total Asset Turnover ratios of REX American Resources Corporation reflect varying levels of efficiency in generating revenue in relation to its fixed and total assets over the analyzed period. Monitoring these ratios can provide insights into the company's operational performance and efficiency in asset utilization.