Sonos Inc (SONO)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.99 | 3.10 | 7.21 | 6.52 | 4.93 |
| Receivables turnover | 24.59 | 17.20 | 17.03 | 24.11 | 12.20 |
| Payables turnover | 7.36 | 4.20 | 6.21 | 4.71 | 4.30 |
| Working capital turnover | 5.44 | 5.25 | 3.57 | 4.95 | 4.53 |
Sonos Inc's activity ratios provide insights into the efficiency of the company's operations and management of its assets and liabilities.
The inventory turnover ratio has seen fluctuations over the years, indicating changes in how effectively the company is managing its inventory. In 2023, the ratio increased to 2.71, suggesting that inventory is turning over more rapidly compared to the previous year, which can be a positive sign of effective inventory management.
The receivables turnover ratio reflects the company's ability to collect its accounts receivable. The significant increase in 2023 to 24.49 demonstrates that the company has been more efficient in collecting payments from customers, which is a positive indicator of strong customer credit policies and effective collection efforts.
The payables turnover ratio measures how efficiently the company is managing its payables and making payments to its suppliers. The increase in 2023 to 4.99 suggests that the company is paying its suppliers more frequently, which may signal favorable credit terms with suppliers or improved cash management.
The working capital turnover ratio indicates how effectively the company is utilizing its working capital to generate sales. The slight increase in 2023 to 5.42 indicates improved efficiency in utilizing working capital to generate revenue, which is a positive indication of operational efficiency.
Overall, Sonos Inc's activity ratios reflect improvements in inventory management, receivables collection, payables management, and working capital utilization, which are all favorable indicators of the company's operational efficiency.
Average number of days
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 91.39 | 117.71 | 50.61 | 55.97 | 74.01 |
| Days of sales outstanding (DSO) | days | 14.84 | 21.22 | 21.43 | 15.14 | 29.92 |
| Number of days of payables | days | 49.57 | 87.00 | 58.77 | 77.47 | 84.84 |
Days of Inventory on Hand (DOH) measures how many days it takes for the company to sell its inventory. Sonos Inc's DOH has fluctuated over the past five years, with a significant increase in 2022 and then a decrease in 2023. This could be due to changes in inventory management or sales strategies.
Days of Sales Outstanding (DSO) indicates the average number of days it takes for the company to collect revenue after a sale. Sonos Inc has shown fluctuations in DSO over the years, with a notable decrease in 2020 and a subsequent increase in 2021. This may reflect changes in the company's credit policies or the efficiency of its accounts receivable management.
Number of Days of Payables reveals the average number of days it takes for the company to pay its suppliers. Sonos Inc has shown fluctuations in this ratio as well. There was a significant decrease in 2021 compared to 2020, followed by a slight increase in 2022 and a decrease in 2023. This could suggest changes in the company's payment terms or supplier relationships.
Overall, these activity ratios indicate that Sonos Inc has experienced fluctuations in its inventory management, accounts receivable collection, and payment to suppliers over the past five years. Further analysis would be needed to understand the factors driving these changes and their impact on the company's overall efficiency and cash flow management.
Long-term
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 19.09 | 20.20 | 24.06 | 21.79 | 16.04 |
| Total asset turnover | 1.66 | 1.47 | 1.51 | 1.62 | 1.65 |
The fixed asset turnover ratio for Sonos Inc has seen a decreasing trend over the past five years. This ratio measures the efficiency of the company in generating sales from its investment in fixed assets. Despite the fluctuations, the company's fixed asset turnover remains relatively high, indicating that Sonos is efficiently utilizing its fixed assets to generate sales revenue.
On the other hand, the total asset turnover ratio has also exhibited some variability, but has generally remained within a narrow range. This ratio reflects how efficiently the company is using its total assets to generate revenue. Sonos Inc's total asset turnover has been relatively stable over the years, suggesting that the company is effectively utilizing its total assets to generate sales.
Given the high fixed asset turnover and the consistent total asset turnover, Sonos Inc appears to be effectively managing its long-term assets to drive sales growth, indicating a sound operational efficiency in utilizing its assets to generate revenue.