Rollins Inc (ROL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 71.54 | 70.19 | 70.88 | 74.05 | 76.93 | 74.71 | 73.72 | 75.25 | 76.58 | 81.41 | 75.34 | 72.62 | 70.41 | 81.47 | 71.50 | 63.87 | 67.05 | 51.26 | 40.59 | 56.17 |
| Receivables turnover | 14.30 | 12.46 | 13.17 | 14.80 | 14.26 | 12.55 | 13.38 | 14.60 | 14.22 | 12.83 | 13.09 | 14.89 | 14.43 | 13.10 | 126.00 | 115.64 | 107.60 | 111.51 | 108.07 | 139.08 |
| Payables turnover | 56.99 | 47.36 | 49.71 | 66.02 | 52.20 | 55.88 | 32.39 | 59.43 | 53.22 | 54.25 | 43.86 | 54.69 | 45.70 | 57.07 | 28.62 | 31.31 | 32.01 | 27.62 | 28.79 | 32.82 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | 156.64 | — | — | — | — | — | — | — | — |
The inventory turnover ratio for Rollins Inc has shown fluctuation over the past few years, ranging from a low of 40.59 to a high of 81.47. The ratio indicates that the company is efficiently managing its inventory levels, with a higher ratio typically indicating faster sales of inventory. However, the ratio has not shown a consistent trend and has displayed some volatility.
The receivables turnover ratio has also varied over the years, with values ranging from a low of 10.83 to a high of 139.08. This ratio reflects how quickly the company is collecting payments from its customers. A higher ratio suggests more effective management of accounts receivable, indicating that the company is collecting payments promptly. In some periods, the ratio has been relatively low, which may indicate challenges in collecting receivables efficiently.
The payables turnover ratio for Rollins Inc has shown fluctuations as well, with values ranging from 27.62 to 66.02. This ratio demonstrates how quickly the company is paying off its suppliers. A higher ratio implies that the company is efficiently managing its payables by making timely payments. The fluctuation in this ratio may suggest changes in the company's payment policies or supplier relationships.
The working capital turnover ratio, provided for some periods only, shows a significant value for March 31, 2022, indicating an efficient utilization of working capital during that period. However, the absence of data for other periods limits a comprehensive analysis of this ratio's trend over time.
Overall, the activity ratios for Rollins Inc reflect varying levels of efficiency in managing inventory, receivables, payables, and working capital. It is essential for the company to monitor these ratios consistently and strive for improvements to optimize its operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 5.10 | 5.20 | 5.15 | 4.93 | 4.74 | 4.89 | 4.95 | 4.85 | 4.77 | 4.48 | 4.84 | 5.03 | 5.18 | 4.48 | 5.11 | 5.71 | 5.44 | 7.12 | 8.99 | 6.50 |
| Days of sales outstanding (DSO) | days | 25.52 | 29.30 | 27.71 | 24.66 | 25.59 | 29.09 | 27.29 | 24.99 | 25.67 | 28.44 | 27.88 | 24.51 | 25.30 | 27.86 | 2.90 | 3.16 | 3.39 | 3.27 | 3.38 | 2.62 |
| Number of days of payables | days | 6.40 | 7.71 | 7.34 | 5.53 | 6.99 | 6.53 | 11.27 | 6.14 | 6.86 | 6.73 | 8.32 | 6.67 | 7.99 | 6.40 | 12.75 | 11.66 | 11.40 | 13.22 | 12.68 | 11.12 |
Rollins Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.
1. Days of Inventory on Hand (DOH): This ratio indicates the average number of days it takes for the company to sell its inventory. From March 31, 2020, to December 31, 2024, the DOH has fluctuated but generally trended downwards, suggesting that Rollins Inc has been able to manage its inventory more efficiently over time. The decrease in DOH signifies an improvement in inventory turnover and a more agile supply chain management.
2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect accounts receivable. The DSO figures show some variability, with a significant spike in DSO in the third and fourth quarters of 2021. This increase could indicate issues with credit management or delayed customer payments during that period. However, the DSO improved thereafter, indicating better collection practices.
3. Number of Days of Payables: This ratio reflects the average number of days it takes for the company to pay its suppliers. The data suggests that Rollins Inc has been able to effectively manage its payables, with a decrease in days of payables from 2020 to 2024. This could be a deliberate strategy to optimize cash flow or negotiate favorable payment terms with suppliers.
Overall, analyzing Rollins Inc's activity ratios reveals a positive trend towards more efficient inventory management and payment practices. However, the company needs to monitor fluctuations in DSO closely to ensure timely collection of receivables and maintain a healthy cash flow position.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 27.08 | 25.63 | 25.01 | 24.80 | 24.24 | 23.87 | 23.19 | 22.24 | 21.03 | 19.94 | 19.33 | 18.44 | 17.95 | 17.94 | 17.00 | 15.35 | 12.14 | 11.41 | 11.01 | 10.65 |
| Total asset turnover | 1.20 | 1.18 | 1.17 | 1.19 | 1.18 | 1.12 | 1.10 | 1.29 | 1.27 | 1.23 | 1.16 | 1.15 | 1.18 | 1.24 | 1.19 | 1.18 | 1.17 | 1.18 | 1.15 | 1.17 |
The long-term activity ratios of Rollins Inc, based on the provided data, demonstrate an increasing trend in both the fixed asset turnover and total asset turnover ratios over the years.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio reflects how efficiently the company generates sales from its investments in fixed assets.
- With a consistent upward trajectory from 10.65 in March 2020 to 27.08 in December 2024, the ratio indicates that Rollins Inc has been effectively utilizing its fixed assets to generate revenue.
- The significant increase in the ratio suggests improvements in operational efficiency and effective management of fixed assets over the years.
2. Total Asset Turnover:
- The total asset turnover ratio measures the company's ability to generate sales in relation to its total assets.
- Despite some fluctuations, the ratio generally shows an increasing trend from 1.17 in March 2020 to 1.20 in December 2024.
- This indicates that Rollins Inc has been more efficient in generating revenue in comparison to the size of its asset base.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests improved asset utilization efficiency and effective management of assets by Rollins Inc over the analyzed period.