Schneider National Inc (SNDR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 20.96 | 47.49 | 72.91 | 40.35 | 48.91 |
| Receivables turnover | 8.62 | 9.93 | 7.57 | 8.15 | 9.60 |
| Payables turnover | 10.24 | 9.10 | 6.02 | 7.37 | 16.93 |
| Working capital turnover | 10.90 | 9.26 | 10.05 | 6.64 | 5.05 |
The activity ratios of Schneider National Inc provide valuable insights into the efficiency and effectiveness of the company's operations over the past five years.
1. Inventory Turnover:
- The inventory turnover ratio has shown fluctuation over the years, ranging from a low of 20.96 in 2023 to a high of 72.91 in 2021.
- A decreasing trend in inventory turnover could indicate inefficient inventory management or decreasing sales, while an increasing ratio suggests improved efficiency or higher sales volume.
2. Receivables Turnover:
- The receivables turnover ratio has varied between 7.57 in 2021 and 9.93 in 2022.
- A higher turnover ratio signifies that the company is collecting its receivables more quickly, which is positive for cash flow and liquidity.
3. Payables Turnover:
- The payables turnover ratio has ranged from 6.02 in 2021 to 16.93 in 2019.
- A lower payables turnover ratio may imply that the company is taking longer to pay its suppliers, potentially straining supplier relationships, while a higher ratio indicates that the company is paying its bills more promptly.
4. Working Capital Turnover:
- The working capital turnover ratio has shown an increasing trend, reaching 10.90 in 2023 from 5.05 in 2019.
- A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to generate sales, which can be a sign of efficient operations.
In summary, analyzing Schneider National Inc's activity ratios can provide valuable insights into the company's operational efficiency, working capital management, and relationships with suppliers and customers over the years. Monitoring these ratios can help stakeholders assess the company's performance and identify areas for improvement.
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 | 17.41 | 7.69 | 5.01 | 9.04 | 7.46 |
| Days of sales outstanding (DSO) | days | 42.32 | 36.75 | 48.24 | 44.78 | 38.04 |
| Number of days of payables | days | 35.64 | 40.12 | 60.60 | 49.50 | 21.56 |
Schneider National Inc's activity ratios provide insights into the efficiency of the company's operations over the past five years.
1. Days of Inventory on Hand (DOH):
DOH measures how many days, on average, a company holds onto inventory before selling it. Schneider National Inc's DOH has fluctuated significantly over the years, ranging from 5.01 days in 2021 to 17.41 days in 2023. The increase in 2023 may indicate higher inventory levels or potential delays in selling products, which could tie up company resources.
2. Days of Sales Outstanding (DSO):
DSO reflects how long it takes for a company to collect payments from customers after a sale. Schneider National Inc's DSO has also varied, with the highest number of 48.24 days in 2021 and a low of 36.75 days in 2022. A decrease in DSO suggests faster collection of receivables, leading to improved cash flow and liquidity.
3. Number of Days of Payables:
This ratio indicates how long a company takes to pay its suppliers. Schneider National Inc's number of days of payables ranged from 21.56 days in 2019 to 60.60 days in 2021. A higher number of days of payables can suggest that the company is taking longer to settle its debts, potentially impacting relationships with suppliers.
In summary, analyzing Schneider National Inc's activity ratios reveals fluctuations in inventory management, accounts receivable collection efficiency, and payment practices towards suppliers over the years. These ratios can help assess the company's operational effectiveness and identify areas for potential improvement.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 2.13 | 2.90 | 2.73 | 2.49 | 2.56 |
| Total asset turnover | 1.21 | 1.53 | 1.42 | 1.29 | 1.30 |
Schneider National Inc's long-term activity ratios indicate the efficiency of the company in generating sales from its fixed assets and total assets over the years.
The fixed asset turnover has seen a declining trend from 2.56 in 2019 to 2.13 in 2023. This suggests that Schneider National Inc is generating fewer sales relative to its investment in fixed assets. However, the ratio is still above 1, indicating that the company is effectively utilizing its fixed assets to generate revenue.
In contrast, the total asset turnover has also shown a decreasing pattern over the years, going from 1.30 in 2019 to 1.21 in 2023. This implies that the company's overall efficiency in generating sales from all its assets has declined. A total asset turnover below 1 indicates a lower level of efficiency in asset utilization.
Overall, Schneider National Inc's long-term activity ratios reveal a mixed performance in terms of asset utilization. The company may need to assess its operational efficiency and capital investments to improve these ratios and enhance its overall financial performance.