Sonos Inc (SONO)
Activity ratios
Short-term
Turnover ratios
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 8.26 | 7.22 | 7.71 | 4.01 | 4.80 | 4.31 | 4.73 | 3.10 | 4.18 | 5.32 | 6.57 | 7.20 | 8.93 | 9.16 | 13.53 | 6.52 | 13.17 | 9.97 | 10.04 | 4.93 |
| Receivables turnover | 11.97 | 22.24 | 19.83 | 24.75 | 14.68 | — | 16.21 | 17.31 | — | — | — | 17.03 | — | — | — | — | — | — | — | — |
| Payables turnover | 7.14 | 10.67 | 7.56 | 7.39 | 9.61 | 7.65 | 6.14 | 4.20 | 4.56 | 5.19 | 3.95 | 6.20 | 6.60 | 6.28 | 4.98 | 4.71 | 10.94 | 13.65 | 5.93 | 4.30 |
| Working capital turnover | 6.63 | 5.55 | 4.19 | 5.48 | 4.63 | 4.37 | 4.40 | 5.28 | 4.29 | 3.30 | 3.09 | 3.57 | 3.32 | 3.08 | 3.17 | 4.96 | 5.59 | 5.15 | 4.24 | 4.55 |
Sonos Inc's activity ratios show how efficiently the company manages its assets and liabilities to generate sales.
1. Inventory turnover:
Sonos has shown a consistent inventory turnover ratio, indicating that it is effectively managing its inventory levels and quickly turning inventory into sales. The ratio has ranged from 4.01 to 8.26 over the periods, with higher ratios indicating better performance in managing inventory.
2. Receivables turnover:
The receivables turnover ratio has varied significantly, ranging from 11.97 to 24.75. A higher ratio indicates that Sonos is collecting its receivables more quickly, which is positive for cash flow and working capital management. However, there are missing data points, indicating incomplete information for some periods.
3. Payables turnover:
The payables turnover ratio shows how efficiently Sonos is paying its suppliers. The ratio has fluctuated between 4.20 and 13.65, with lower ratios suggesting a longer time to pay suppliers. Consistency in paying suppliers timely is crucial for maintaining good relationships with them.
4. Working capital turnover:
The working capital turnover ratio reflects how well Sonos is utilizing its working capital to generate sales. The company has maintained a relatively stable ratio, ranging from 3.09 to 6.63. A higher ratio indicates that Sonos is effectively using its working capital to support sales activities.
Overall, Sonos Inc's activity ratios demonstrate a generally positive trend in effectively managing its assets and liabilities to drive sales and improve operational efficiency. Continued monitoring and analysis of these ratios will provide insights into the company's financial performance and efficiency in the future.
Average number of days
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 44.18 | 50.55 | 47.35 | 91.05 | 76.06 | 84.75 | 77.13 | 117.71 | 87.30 | 68.55 | 55.59 | 50.71 | 40.86 | 39.85 | 26.98 | 55.97 | 27.71 | 36.62 | 36.37 | 74.01 |
| Days of sales outstanding (DSO) | days | 30.49 | 16.41 | 18.41 | 14.75 | 24.86 | — | 22.52 | 21.08 | — | — | — | 21.43 | — | — | — | — | — | — | — | — |
| Number of days of payables | days | 51.14 | 34.21 | 48.26 | 49.40 | 37.99 | 47.70 | 59.48 | 87.00 | 80.10 | 70.26 | 92.48 | 58.89 | 55.29 | 58.12 | 73.35 | 77.48 | 33.38 | 26.74 | 61.52 | 84.84 |
Days of inventory on hand (DOH) for Sonos Inc have shown some fluctuations over the periods analyzed. Higher DOH values suggest that inventory is being held for a longer period before being sold, which may tie up cash and increase carrying costs. The company seems to have improved its inventory management from the high levels seen in September 2022 and December 2022, but there is still room for further optimization.
Days of sales outstanding (DSO) have also varied, indicating how quickly the company is able to collect payments from customers. Lower DSO values are preferable as they indicate a shorter collection period and better liquidity. Sonos Inc has generally maintained a reasonable DSO, with some periods showing particularly efficient collections.
Number of days of payables reveals the average payment period the company takes to settle its outstanding invoices. Longer payment periods can indicate better cash flow management, but they could also suggest potential supplier relationship issues. Sonos Inc has shown a mix of payment periods, with some periods paying suppliers relatively quickly and others taking longer to settle payables.
In conclusion, Sonos Inc should strive to optimize its inventory management further, maintain efficient collections from customers, and carefully manage its payment periods to ensure a healthy balance of liquidity and supplier relationships.
Long-term
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 15.27 | 17.58 | 18.46 | 19.21 | 17.88 | 19.23 | 20.90 | 20.34 | 23.67 | 25.04 | 25.16 | 24.06 | 23.66 | 23.93 | 21.96 | 21.83 | 19.76 | 17.25 | 16.30 | 16.12 |
| Total asset turnover | 1.64 | 1.68 | 1.44 | 1.67 | 1.58 | 1.59 | 1.47 | 1.47 | 1.44 | 1.47 | 1.26 | 1.51 | 1.57 | 1.50 | 1.32 | 1.63 | 1.99 | 2.02 | 1.52 | 1.65 |
Sonos Inc's long-term activity ratios provide insight into the efficiency with which the company generates sales revenue in relation to its fixed assets and total assets.
Fixed asset turnover has shown a declining trend over the period under review. It decreased from 25.16 in March 2022 to 15.27 in June 2024, indicating that the company is generating fewer sales relative to its investment in fixed assets. This suggests a decrease in the efficiency of utilizing fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has been fluctuating over the same period. Although there were fluctuations, the ratio ranged from 1.26 to 2.02, indicating the company's ability to generate sales in relation to its total assets. Despite the fluctuations, the average total asset turnover ratio appears to be relatively stable over time.
Overall, it is important for Sonos Inc to closely monitor and manage its asset turnover ratios to ensure efficient utilization of assets and improve revenue generation. Actions might be needed to address the decline in fixed asset turnover to enhance long-term profitability and operational efficiency.