REX American Resources Corporation (REX)

Short-term

Turnover ratios

The analysis of REX American Resources Corporation's activity ratios reveals valuable insights into the efficiency and productivity of the company's operations.

1. Inventory Turnover: REX's inventory turnover ratio has shown fluctuations over the years, ranging from 9.48 to 27.06. A higher inventory turnover indicates that the company is selling its inventory quickly, which is generally considered positive as it reduces holding costs and minimizes the risk of inventory obsolescence. The increasing trend in the inventory turnover ratio from 2020 to 2024 suggests improved management of inventory levels.

2. Receivables Turnover: The data provided does not include information on receivables turnover, indicating that the company's accounts receivable turnover ratio is not available for analysis. This ratio helps in understanding how quickly the company collects on its sales, and a higher turnover is typically favorable as it indicates efficient collection practices.

3. Payables Turnover: Similar to receivables turnover, data on payables turnover is not available. The payables turnover ratio is important for understanding how efficiently the company pays its suppliers and manages its working capital.

4. Working Capital Turnover: REX's working capital turnover ratio has shown a generally increasing trend from 1.46 in July 2020 to 1.67 in January 2025. A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital invested. The increasing trend suggests improved operational efficiency and better utilization of working capital resources.

Overall, while the lack of data on receivables and payables turnover limits the comprehensive analysis of REX American Resources Corporation's activity ratios, the trends observed in inventory turnover and working capital turnover indicate positive developments in the company's operational efficiency and management of working capital.

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Average number of days

The analysis of REX American Resources Corporation's activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH):
- The DOH ratio shows the number of days it takes for the company to sell its inventory.
- REX's DOH fluctuated over the period, ranging from a low of 13.49 days to a high of 38.51 days.
- The company has shown some variability in managing its inventory levels efficiently.
- In recent periods, there has been a decreasing trend in DOH, indicating better inventory management.

2. Days of Sales Outstanding (DSO):
- The DSO ratio measures how long it takes the company to collect its accounts receivable.
- The data provided does not show any values for DSO, indicating that this metric may not be available or relevant for REX.

3. Number of Days of Payables:
- The number of days of payables is not provided in the data, suggesting that information regarding the company's payment terms with its suppliers is not available for analysis.
- Payables information is crucial to assessing REX's liquidity and working capital management.

Overall, based on the available information, REX American Resources Corporation appears to have made improvements in managing its inventory levels efficiently. However, further details on accounts receivable collection and payables management would provide a more comprehensive assessment of the company's activity ratios.

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Long-term

The Fixed Asset Turnover ratio for REX American Resources Corporation has shown an increasing trend from April 2020 to July 2023, indicating that the company is generating more revenue per dollar invested in fixed assets. However, there was a slight decline in the ratio in the last quarter of October 2023. Overall, the ratio has been relatively stable and at a healthy level, peaking at 6.46 in April 2023.

On the other hand, the Total Asset Turnover ratio for the company has fluctuated but generally shown an upward trend from April 2020 to July 2023, suggesting that REX American Resources Corporation is utilizing its total assets more efficiently to generate sales. However, there was a decline in the ratio from July 2023 onwards. It is important to note that the Total Asset Turnover ratio is typically lower than the Fixed Asset Turnover ratio, as total assets include both fixed and current assets.

In conclusion, while the Fixed Asset Turnover and Total Asset Turnover ratios have exhibited some fluctuations, the overall trend indicates that REX American Resources Corporation has been effectively utilizing its assets to generate sales. Monitoring these ratios over time can provide valuable insights into the company's operational efficiency and asset utilization.