Skyline Corporation (SKY)

Short-term

Turnover ratios

Skyline Corporation's activity ratios provide insight into the efficiency of its operations.

1. Inventory Turnover: Skyline Corporation's inventory turnover ratio has been fluctuating over the years. In the initial periods, the company had a relatively high inventory turnover rate, indicating efficient management of inventory. However, in recent periods, there has been a decline in the ratio, suggesting a slower turnover of inventory on hand.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly the company collects its accounts receivables. Skyline Corporation's receivables turnover ratio has shown variability, with some periods indicating a relatively faster collection of receivables compared to others. The sudden missing data in March 2025 might indicate an anomaly that requires further investigation.

3. Payables Turnover: The payables turnover ratio shows how many times a company pays off its accounts payable during a period. Skyline Corporation's payables turnover ratio has also displayed fluctuations. A higher turnover ratio suggests the company is paying its suppliers more frequently, whereas a lower ratio may indicate a longer payment cycle.

4. Working Capital Turnover: This ratio measures how efficiently the company is utilizing its working capital to generate sales. Skyline Corporation's working capital turnover has generally decreased over the years, which could signal a decrease in the company's ability to generate sales relative to its working capital.

Overall, analyzing these activity ratios highlights the efficiency and effectiveness of Skyline Corporation's operations in managing its inventory, receivables, payables, and working capital. The trends observed in these ratios can provide valuable insights for assessing the company's operational performance and potential areas for improvement.

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Average number of days

Skyline Corporation's activity ratios provide insights into the efficiency of its inventory management, sales collection process, and payment to suppliers.

1. Days of Inventory on Hand (DOH):
The DOH ratio measures how many days, on average, the company holds inventory before it is sold. Skyline's DOH fluctuated over the periods provided, ranging from a low of 41.24 days to a high of 95.32 days. A lower DOH indicates efficient inventory turnover, while a higher DOH suggests excess inventory or slow sales. Skyline's DOH shows variability, with some periods showing better inventory management than others.

2. Days of Sales Outstanding (DSO):
The DSO ratio signifies the average number of days it takes for the company to collect revenue after making a sale. Skyline's DSO ranged from as low as 6.30 days to a high of 19.37 days. A lower DSO is favorable as it indicates quicker collection of receivables, while a higher DSO may point to credit issues or ineffective collection procedures. Skyline experienced fluctuations in DSO over the periods, with some quarters showing improvements in collecting sales revenue promptly.

3. Number of Days of Payables:
This ratio evaluates the average number of days it takes for the company to pay its suppliers. Skyline's payables days ranged from 7.61 days to 20.79 days. A lower number of days indicates faster payment to suppliers, while a higher number suggests the company is stretching payment terms. Skyline's payables days varied across the periods, indicating changes in the company's payment practices and relationships with suppliers.

Overall, Skyline Corporation should closely monitor its activity ratios to ensure efficient inventory management, timely collection of sales revenue, and appropriate payment to suppliers for sustainable financial health and operational efficiency.

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Long-term

Skyline Corporation's long-term activity ratios provide insights into the efficiency of the company in managing its fixed and total assets.

1. Fixed Asset Turnover: This ratio indicates how efficiently the company generates sales from its fixed assets. The trend shows an increasing pattern from June 2020 to September 2022, peaking at 17.24 in September 2022. This indicates that the company was able to generate increasing sales from its fixed assets during this period. However, the ratio decreased in the following periods, reaching 12.73 in June 2023, possibly indicating a decline in asset efficiency. It is important to note that the ratio was not provided for the periods beyond December 2023.

2. Total Asset Turnover: This ratio measures the company's ability to generate sales from all its assets. The trend shows fluctuations over the years, with the ratio peaking at 1.89 in December 2021. There is a general declining trend from December 2021 onwards, with the ratio dropping to 1.03 in March 2024. This may suggest a decrease in overall asset efficiency during this period.

In summary, Skyline Corporation's fixed asset turnover ratio showed an initial increase followed by fluctuations, while the total asset turnover ratio exhibited a peak followed by a declining trend. Further analysis would be needed to understand the factors contributing to these trends and their implications for the company's operational performance.