Saia Inc (SAIA)

Short-term

Turnover ratios

The activity ratios of Saia Inc provide insights into the efficiency of the company's operations.

1. Inventory Turnover:
- The inventory turnover ratio for Saia Inc ranged from 29.15 to 111.92, with fluctuations over the years.
- A higher inventory turnover ratio indicates that inventory is being sold quickly, which is generally favorable, as it minimizes holding costs.

2. Receivables Turnover:
- The receivables turnover ratio fluctuated between 7.27 and 9.46 over the period under review.
- A higher receivables turnover ratio suggests that the company is efficient in collecting payments from its customers.

3. Payables Turnover:
- The payables turnover ratio varied between 8.50 and 24.41, indicating changes in the company's payment practices.
- A lower payables turnover ratio may indicate that the company takes longer to pay its suppliers, which could be a strategy to manage cash flow.

4. Working Capital Turnover:
- The working capital turnover ratio ranged from 8.04 to 403.60, showing significant variability.
- A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales.

Overall, analyzing these activity ratios provides valuable insights into how effectively Saia Inc is managing its inventory, receivables, payables, and working capital to support its operational activities.

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Average number of days

Saia Inc's activity ratios show the efficiency of the company in managing its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH):
- The DOH indicates how many days, on average, the company holds onto its inventory before it is sold.
- In September 2022, and September 2024, Saia Inc had 3.26 days and 7.88 days of inventory on hand, respectively.
- A lower DOH is generally preferable as it suggests a faster turnover of inventory, but the company's DOH fluctuates and is not consistently improving.

2. Days of Sales Outstanding (DSO):
- The DSO measures how long it takes for the company to collect on its outstanding sales.
- The DSO ranged from a low of 38.60 days in March 2023 to a high of 50.23 days in September 2021.
- A lower DSO is preferred as it indicates faster collection of receivables, but Saia Inc experienced some fluctuations in its DSO over the years.

3. Number of Days of Payables:
- This ratio shows how many days, on average, the company takes to pay its suppliers.
- Saia Inc's number of days of payables ranged from 14.96 days in December 2024 to 42.92 days in September 2021.
- A higher number of days of payables may indicate the company is taking longer to pay its suppliers, potentially benefiting from extended payment terms, but this can also strain supplier relationships.

In summary, while Saia Inc's activity ratios show some fluctuations over the years, there may be opportunities for the company to improve its efficiency in managing inventory, collecting receivables, and managing payables to enhance overall operational performance.

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Long-term

Saia Inc's long-term activity ratios provide insights into how effectively the company is utilizing its assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures the company's ability to generate sales from its investment in fixed assets, such as property, plant, and equipment. A higher ratio indicates better efficiency in utilizing fixed assets. Saia Inc's Fixed Asset Turnover has shown a decreasing trend from 1.62 in March 2020 to 1.25 in December 2024. The fluctuation in this ratio suggests varying levels of efficiency in utilizing fixed assets over the years.

2. Total Asset Turnover: This ratio reflects how well the company is using all its assets to generate revenue. A higher ratio indicates better efficiency in asset utilization. Saia Inc's Total Asset Turnover ratio has fluctuated over the years, from 1.15 in March 2020 to 1.01 in December 2024. The downward trend in this ratio indicates a decrease in the company's efficiency in generating sales relative to its total assets over the period under consideration.

In conclusion, analyzing Saia Inc's long-term activity ratios reveals fluctuations in the company's efficiency in utilizing both fixed and total assets to generate revenue. Management may need to focus on improving asset utilization to drive better financial performance in the future.