Saia Inc (SAIA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 29.15 | 60.69 | 56.99 |
| Receivables turnover | 8.74 | 9.21 | 8.89 | 8.27 | 8.39 |
| Payables turnover | 24.41 | 10.47 | 13.43 | 10.82 | 12.50 |
| Working capital turnover | 20.39 | 8.82 | 10.86 | 24.12 | — |
Saia Inc's inventory turnover has shown a steady improvement from 56.99 in December 31, 2020, to 60.69 in December 31, 2021, indicating that the company is managing its inventory more efficiently. However, there was a significant drop in inventory turnover to 29.15 in December 31, 2022, suggesting a potential issue in managing inventory levels efficiently during that period. Unfortunately, no data was available for the years 2023 and 2024.
On the other hand, Saia Inc's receivables turnover has remained relatively stable, ranging from 8.27 in December 31, 2021, to 9.21 in December 31, 2023. This indicates that the company is collecting its receivables at a consistent pace over the years.
Regarding payables turnover, there has been some variability in the company's payment cycle. The payables turnover ratio decreased from 12.50 in December 31, 2020, to 10.47 in December 31, 2023, suggesting that Saia Inc is taking longer to pay its suppliers. However, there was a significant increase in payables turnover to 24.41 in December 31, 2024, indicating a notable improvement in managing payables during that period.
Saia Inc's working capital turnover was not available for December 31, 2020. However, there was a significant increase in the working capital turnover from 10.86 in December 31, 2022, to 20.39 in December 31, 2024, indicating that the company is generating more revenue relative to its working capital investment.
In conclusion, Saia Inc shows varying trends in activity ratios such as inventory turnover, receivables turnover, payables turnover, and working capital turnover over the years, reflecting different aspects of the company's operational efficiency and financial management.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 12.52 | 6.01 | 6.40 |
| Days of sales outstanding (DSO) | days | 41.75 | 39.62 | 41.05 | 44.12 | 43.52 |
| Number of days of payables | days | 14.96 | 34.86 | 27.19 | 33.73 | 29.21 |
Saia Inc's activity ratios provide insight into its efficiency in managing inventory, collecting receivables, and paying off payables.
1. Days of Inventory on Hand (DOH): The DOH shows how many days it takes for Saia Inc to sell its inventory. A lower number is generally favorable as it indicates efficient inventory management. From 2020 to 2022, the DOH decreased from 6.40 days to 6.01 days, suggesting an improvement in inventory turnover. However, there was a significant increase in 2023 to 12.52 days, but the data for 2023 and 2024 are not available.
2. Days of Sales Outstanding (DSO): The DSO measures how long it takes for Saia Inc to collect payment on credit sales. A lower DSO is preferred as it indicates faster collections. The trend for Saia Inc's DSO was relatively stable from 2020 to 2024, ranging from 39.62 to 44.12 days. The decrease in DSO from 2022 to 2023 indicates an improvement in the efficiency of receivables collection.
3. Number of Days of Payables: This ratio reflects how long Saia Inc takes to pay its suppliers. A longer payment period may indicate better cash flow management. The number of days of payables for Saia Inc fluctuated over the years, with the lowest figure in 2024 at 14.96 days. An increase in days of payables can provide the company with more liquidity to fund operations or investments.
Overall, analyzing these activity ratios together can provide a comprehensive view of Saia Inc's operational efficiency and effectiveness in managing its working capital components.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.26 | 1.63 | 1.88 | 1.79 | 1.60 |
| Total asset turnover | 1.01 | 1.12 | 1.28 | 1.24 | 1.17 |
Saia Inc's Fixed Asset Turnover ratio has shown a positive trend over the five-year period, increasing from 1.60 in 2020 to 1.26 in 2024. This indicates that the company generated more revenue relative to its fixed assets in 2020 compared to 2024. However, the ratio dipped in 2024, signaling a decrease in the efficiency of utilizing fixed assets to generate sales.
On the other hand, the Total Asset Turnover ratio indicates how efficiently the company is using all its assets to generate revenue. Saia Inc's Total Asset Turnover ratio experienced fluctuations over the years, with a general decline from 1.17 in 2020 to 1.01 in 2024. This suggests that the company is generating less revenue per dollar of total assets in 2024 compared to 2020.
Overall, Saia Inc's long-term activity ratios show a mixed performance. While the Fixed Asset Turnover ratio improved initially but declined in the latest year, the Total Asset Turnover ratio exhibited a general decreasing trend over the five-year period. It indicates some inefficiencies in the company's utilization of assets to generate revenue, which may require further analysis to address and enhance operational efficiency.