Saia Inc (SAIA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 29.15 | 60.69 | 56.99 | 40.61 |
| Receivables turnover | 9.20 | 8.89 | 8.27 | 8.39 | 8.71 |
| Payables turnover | 10.47 | 13.43 | 10.82 | 12.50 | 13.03 |
| Working capital turnover | 8.81 | 10.86 | 24.12 | — | — |
Based on the provided data for Saia Inc., we can analyze the activity ratios as follows:
1. Inventory Turnover: Unfortunately, specific data for inventory turnover is not available for the years 2019 to 2023, making it difficult to assess the company's efficiency in managing its inventory levels.
2. Receivables Turnover: The receivables turnover ratio indicates how many times during a specific period the company collects its outstanding receivables. Saia Inc. has shown a relatively consistent performance in this area over the last five years, with ratios ranging from 8.27 to 9.21. A higher turnover ratio suggests that the company is efficient in collecting its receivables, which is a positive sign for its cash flow management.
3. Payables Turnover: Unfortunately, specific data for payables turnover is not available for the years 2019 to 2023, making it challenging to evaluate how quickly the company is paying its suppliers.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company is using its working capital to generate sales revenue. Saia Inc. has shown a significant fluctuation in this ratio, with a substantial decrease from 24.12 in 2021 to 8.82 in 2023. A higher turnover ratio indicates that the company is effectively using its working capital to generate sales, while a lower ratio may suggest inefficiency in utilizing its resources.
In summary, based on the available data, Saia Inc. has demonstrated steady performance in collecting its receivables over the years. However, the lack of information on inventory and payables turnover limits a comprehensive analysis of the company's overall activity efficiency. Additionally, the significant decline in the working capital turnover ratio from 2021 to 2023 warrants further investigation into the company's operational and financial management practices.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 12.52 | 6.01 | 6.40 | 8.99 |
| Days of sales outstanding (DSO) | days | 39.66 | 41.05 | 44.12 | 43.52 | 41.90 |
| Number of days of payables | days | 34.86 | 27.19 | 33.73 | 29.21 | 28.01 |
Based on the provided data, we observe the following trends in Saia Inc.'s activity ratios:
1. Days of Inventory on Hand (DOH): Unfortunately, there is no information available for Days of Inventory on Hand for any year, making it challenging to assess Saia Inc.'s efficiency in managing its inventory levels.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding decreased from 41.76 days in 2019 to 39.62 days in 2023. This indicates that Saia Inc. has become more effective in collecting its accounts receivable over the years. A lower DSO suggests that the company is converting its sales into cash more quickly, improving its cash flow and liquidity position.
3. Number of Days of Payables: The data on the Number of Days of Payables is not provided for any year, making it difficult to evaluate Saia Inc.'s payment practices and relationships with its suppliers.
In conclusion, while Saia Inc. has shown improvement in managing its accounts receivable by decreasing its Days of Sales Outstanding, the lack of data on inventory management and payables restricts a comprehensive assessment of the company's overall efficiency in its operating cycle. It would be beneficial to have additional information on these ratios to gain a more complete understanding of Saia Inc.'s activity ratios and operational performance.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.63 | 1.88 | 1.79 | 1.60 | 1.69 |
| Total asset turnover | 1.11 | 1.28 | 1.24 | 1.17 | 1.26 |
Saia Inc.'s fixed asset turnover has shown a declining trend over the past five years, decreasing from 1.70 in 2019 to 1.63 in 2023. This indicates that the company's efficiency in generating sales from its fixed assets has slightly weakened. However, the figures are still relatively stable, suggesting a consistent utilization of fixed assets to generate revenue.
On the other hand, the total asset turnover ratio for Saia Inc. has also experienced a downward trajectory over the same period, dropping from 1.26 in 2019 to 1.12 in 2023. This implies a decrease in the efficiency of generating sales from all assets, including both fixed and current assets. Despite the decline, the ratio remains above 1, indicating that the company is generating more in sales than the value of its total assets.
Overall, while the long-term activity ratios of Saia Inc. have exhibited a declining trend, they are still at levels that suggest the company is effectively utilizing its assets to generate revenue. Further analysis and comparison with industry standards may provide additional insights into the company's asset management efficiency.