SpartanNash Co (SPTN)

Short-term

Turnover ratios

SpartanNash Co's activity ratios provide insights into its efficiency in managing different aspects of its operations.

1. Inventory turnover: SpartanNash Co's inventory turnover has been consistently high over the past five years, indicating that the company efficiently sells through its inventory. The slight fluctuations in the ratio suggest stable inventory management practices.

2. Receivables turnover: The company's receivables turnover has shown a decreasing trend over the years, indicating that it takes longer to collect its receivables. This could potentially lead to cash flow challenges if not managed effectively.

3. Payables turnover: SpartanNash Co's payables turnover has remained relatively stable over the years, indicating that the company manages its trade payables efficiently. A higher payables turnover suggests that the company is taking longer to pay its suppliers.

4. Working capital turnover: The working capital turnover has shown a decreasing trend over the past five years, suggesting that the company is becoming less efficient in generating revenue relative to its working capital. This could indicate potential inefficiencies in working capital management.

Overall, while SpartanNash Co demonstrates strong inventory management, there may be opportunities to improve its receivables collection process and working capital efficiency. Keeping a close eye on these ratios can help the company optimize its working capital and cash flow management.

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Average number of days

SpartanNash Co's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- The company's days of inventory on hand have been relatively stable over the past five years, ranging from 24.96 to 26.89 days.
- A lower DOH indicates that SpartanNash is turning over its inventory more quickly, which could signify effective inventory management and potentially lower holding costs.
- Although the DOH has shown some fluctuations, the overall trend suggests that SpartanNash has been maintaining a moderate level of efficiency in managing its inventory.

2. Days of Sales Outstanding (DSO):
- SpartanNash's days of sales outstanding have gradually increased from 13.96 days in 2020 to 15.83 days in 2023.
- A higher DSO implies that the company is taking longer to collect payments from customers, which could lead to cash flow constraints.
- The increasing trend in DSO could indicate potential issues in credit management or changes in customer payment behaviors that may require attention.

3. Number of Days of Payables:
- The number of days of payables for SpartanNash has varied slightly over the years but has generally remained within the range of 20.29 to 21.83 days.
- A higher number of days of payables suggests that the company is taking longer to settle its payables, which may indicate opportunities to improve working capital management.
- SpartanNash's stable days of payables indicate a consistent approach to managing vendor payments without significant deviations.

Overall, SpartanNash Co's activity ratios reflect a mixed performance in inventory management, accounts receivable collection, and payables turnover. The company may need to closely monitor its DSO and inventory turnover to ensure efficient operations and working capital management in the future.

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Long-term

The fixed asset turnover ratio for SpartanNash Co has shown a decreasing trend over the past five years, decreasing from 16.20 in 2020 to 14.99 in 2023. This indicates that SpartanNash Co generated $14.99 in revenue for every $1 invested in fixed assets in 2023.

On the other hand, the total asset turnover ratio has remained relatively stable, fluctuating between 4.05 and 4.18 over the same period. This ratio shows that SpartanNash Co generated $4.13 in revenue for every $1 invested in total assets in 2023.

Overall, the company's efficiency in generating sales from both fixed assets and total assets has been relatively strong, as indicated by the high turnover ratios. However, the decreasing trend in fixed asset turnover may suggest a decrease in the efficiency of utilizing fixed assets to generate revenue compared to previous years. Further analysis is needed to understand the factors contributing to these trends and their implications for the company's long-term performance.