Skyline Corporation (SKY)

Short-term

Turnover ratios

To analyze Skyline Corporation's activity ratios, we will focus on the following ratios: Inventory turnover, Receivables turnover, Payables turnover, and Working capital turnover.

1. Inventory Turnover:
- The inventory turnover ratio is a measure of how efficiently a company manages its inventory. Skyline Corporation's inventory turnover has been relatively stable, ranging between 5.84 to 10.39 over the past few years. A higher turnover ratio indicates that the company is selling its inventory quickly.

2. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects on its credit sales. Skyline Corporation's receivables turnover varied widely over the period, from 24.35 to 58.07. A higher turnover ratio suggests that the company is collecting its receivables more effectively.

3. Payables Turnover:
- The payables turnover ratio shows how quickly a company pays its suppliers. Skyline Corporation's payables turnover ranged between 20.42 to 55.84. A higher turnover ratio indicates that the company is paying its suppliers more promptly.

4. Working Capital Turnover:
- The working capital turnover ratio reflects how efficiently a company uses its working capital to generate sales. Skyline Corporation's working capital turnover has been decreasing steadily from 6.45 to 3.85. A higher turnover ratio is generally preferred as it signals effective utilization of working capital.

In summary, Skyline Corporation has shown stable inventory turnover, varying receivables turnover with periods of improvement, fluctuating payables turnover, and a decreasing trend in working capital turnover. Evaluating these activity ratios provides insights into the company's operational efficiency and management of its resources. Further analysis in conjunction with other financial metrics would be necessary to assess the overall financial health and performance of Skyline Corporation.

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Average number of days

Based on the provided data, Skyline Corporation's activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The average DOH for Skyline Corporation over the period from March 31, 2020, to December 31, 2024, was approximately 45.96 days.
- Skyline's inventory turnover efficiency declined in the most recent periods, as evidenced by the increasing trend in DOH from March 31, 2022, to December 31, 2024.
- A decreasing trend or lower DOH is preferred as it indicates that the company is selling its inventory more quickly.

2. Days of Sales Outstanding (DSO):
- The average DSO for Skyline Corporation over the same period was around 10.59 days.
- Skyline experienced fluctuations in its DSO over the years, reflecting changes in its credit policies or customer payment behavior.
- The DSO values for some quarters were not available (denoted as "— days"), which may indicate issues in data recording or significant changes in customer payment terms.

3. Number of Days of Payables:
- The average number of days of payables for Skyline Corporation was approximately 10.97 days during the period under review.
- Skyline appeared to manage its payables effectively, with the number of days of payables generally remaining within a reasonable range.
- A longer period of payables suggests that the company is taking longer to pay its suppliers, potentially indicating better cash management.

Overall, an in-depth analysis of these activity ratios can provide insights into Skyline Corporation's operational efficiency, liquidity management, and supply chain performance. High DOH and DSO levels may warrant further investigation to identify potential inefficiencies or risks in the company's operations.

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Long-term

Skyline Corporation's Fixed Asset Turnover ratio has shown a declining trend from 12.52 in March 2020 to 7.92 in December 2024. This indicates a decrease in the efficiency of utilizing fixed assets to generate sales over the period under review. Specifically, the ratio decreased significantly from the end of 2022 to the end of 2024, suggesting potential operational inefficiencies or underutilization of fixed assets during this period.

On the other hand, the Total Asset Turnover ratio reflects a fluctuating pattern, with a range of 1.05 in March 2024 to 1.89 in December 2021. The ratio generally decreased over the years, indicating a reduction in the company's ability to generate sales relative to its total assets. The decreasing trend in the Total Asset Turnover may be an indication of slowing sales growth in comparison to the growth in total assets.

In summary, the long-term activity ratios of Skyline Corporation suggest a decline in both the efficiency of using fixed assets to generate sales and the overall ability to generate sales relative to total assets over the period from 2020 to 2024. This could raise concerns about the company's operational efficiency and asset utilization, calling for further analysis and potential strategic improvements to address these issues.