Sonos Inc (SONO)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.47 | 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 |
| Receivables turnover | 34.27 | 11.97 | 22.24 | 19.83 | 24.75 | 14.68 | — | 16.21 | 17.31 | — | — | — | 17.03 | — | — | — | — | — | — | — |
| Payables turnover | 6.51 | 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 |
| Working capital turnover | 8.25 | 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 |
The inventory turnover ratio for Sonos Inc has shown some fluctuations over the periods under review, ranging from a low of 3.10 to a high of 13.53. Generally, the company is able to manage its inventory efficiently, with a ratio above 5 indicating that it is selling and replenishing its inventory effectively.
The receivables turnover ratio demonstrates the company's ability to collect outstanding receivables from customers. The ratios vary significantly, with some periods showing high turnover (e.g., 34.27) and others with lower turnover. This indicates that the company may have experienced challenges or improvements in its accounts receivable collection process.
The payables turnover ratio reflects how quickly the company pays its suppliers. Sonos Inc has had varying payables turnover ratios, with some fluctuations indicating changes in payment practices or perhaps negotiation terms with suppliers. The ratios generally range from around 4 to 10, suggesting the company manages its payables effectively.
The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales. Sonos Inc's ratios have shown some variability, indicating fluctuations in how effectively the company is utilizing its working capital to generate revenue. The ratios range from around 3 to 8.25, showing a mix of efficiency levels across the periods.
Overall, based on the activity ratios analyzed, Sonos Inc appears to have reasonable efficiency levels in managing its inventory, receivables, payables, and working capital. Variations in these ratios over time may indicate changes in the company's operational performance and efficiency in managing its resources.
Average number of days
| Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 66.67 | 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 |
| Days of sales outstanding (DSO) | days | 10.65 | 30.49 | 16.41 | 18.41 | 14.75 | 24.86 | — | 22.52 | 21.08 | — | — | — | 21.43 | — | — | — | — | — | — | — |
| Number of days of payables | days | 56.04 | 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 |
Based on the provided data for Sonos Inc, the analysis of its activity ratios reveals the following trends:
1. Days of Inventory on Hand (DOH):
- The DOH has fluctuated over the periods, ranging from a low of 26.98 days to a high of 117.71 days.
- Generally, the trend shows relative stability, with occasional spikes or drops possibly due to changes in production or sales patterns.
2. Days of Sales Outstanding (DSO):
- The DSO experienced significant variability, with values ranging from 10.65 days to 30.49 days.
- Notably, there are gaps in the DSO data over certain periods, which may be due to changes in reporting practices or data availability.
3. Number of Days of Payables:
- The days of payables also show fluctuations, with values varying from 26.74 days to 92.48 days.
- There appears to be some inconsistency in the data availability for this ratio across different periods, possibly impacting the trend analysis.
Overall, the stability or variability in these activity ratios can provide insights into Sonos Inc's efficiency in managing its inventory, collecting receivables, and settling payables. Further investigation into the reasons behind the fluctuations observed in these ratios could help in understanding the company's operational performance and financial management practices.
Long-term
| Sep 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 14.93 | 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 |
| Total asset turnover | 1.66 | 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 |
The fixed asset turnover ratio for Sonos Inc has shown a consistent upward trend over the period from December 2019 to September 2024, indicating that the company is generating more revenue per dollar of fixed assets invested. The ratio increased from 16.30 in December 2019 to 25.04 in June 2022, demonstrating an efficient utilization of fixed assets to generate sales. However, there was a slight decrease in the most recent quarter, from 18.46 in March 2024 to 14.93 in September 2024, which may suggest a temporary dip in productivity.
On the other hand, the total asset turnover ratio fluctuated within a narrower range during the same period. Despite some fluctuations, the ratio generally remained stable, with slight increases and decreases. It peaked at 2.02 in March 2020 and hit a low of 1.26 in December 2021, reflecting variations in how effectively the company utilized all its assets to generate revenue.
Overall, both ratios demonstrate Sonos Inc's ability to efficiently utilize its assets to generate sales, with the fixed asset turnover showing more significant improvements over time compared to the total asset turnover.