SpartanNash Co (SPTN)

Short-term

Turnover ratios

SpartanNash Co's activity ratios provide insight into the efficiency with which the company manages its inventory, receivables, payables, and working capital.

1. Inventory turnover: This ratio measures how many times a company sells its average inventory in a given period. SpartanNash Co's inventory turnover has shown a general increasing trend over the period provided, indicating that the company is generating sales from its inventory more rapidly. The ratio ranged from 12.78 to 15.60, with an average of approximately 14.08, suggesting effective inventory management.

2. Receivables turnover: This ratio reflects how quickly a company collects payments on its credit sales. The data for SpartanNash Co shows sporadic values for receivables turnover, with some periods showing values while others showing blanks due to missing information. Therefore, it is challenging to draw conclusions on the efficiency of the company's receivables collection.

3. Payables turnover: This ratio evaluates how efficiently a company pays its suppliers. SpartanNash Co's payables turnover ranged from 14.34 to 18.76, with an average of approximately 17.23. A higher payables turnover indicates that the company is paying its suppliers more frequently, which could imply strong supplier relationships and potentially favorable credit terms.

4. Working capital turnover: This ratio measures the efficiency of a company in utilizing its working capital to generate sales. SpartanNash Co's working capital turnover ranged from 20.91 to 29.31, with an average of approximately 24.31. A higher working capital turnover ratio suggests that the company is effectively managing its working capital to support sales activities.

Overall, the analysis of SpartanNash Co's activity ratios indicates that the company is efficiently managing its inventory and working capital to drive sales. However, further analysis may be needed to understand the impact of the inconsistent data for receivables turnover on the company's overall financial performance.

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Average number of days

Days of Inventory on Hand (DOH):
- SpartanNash Co has shown some fluctuation in its inventory management efficiency over the analyzed period.
- The company had an average of around 26 days of inventory on hand, indicating that it takes approximately 26 days for the company to sell its inventory.
- The trend shows some improvement towards the end of the period, with the DOH decreasing from 28.55 days to 24.81 days.

Days of Sales Outstanding (DSO):
- SpartanNash Co had varying levels of efficiency in collecting its accounts receivable during the period.
- Data is missing for several periods, suggesting a lack of consistent reporting or potential fluctuations in sales credit terms.
- When data is available, the DSO ranged from 14.39 days to 17.04 days, indicating the average number of days it takes the company to collect outstanding sales.

Number of Days of Payables:
- The company's payment practices to suppliers also fluctuated during the analyzed period.
- There are many instances where data is missing, which may indicate irregular reporting or changes in payment terms with suppliers.
- The average number of days of payables ranged from around 19.45 days to 23.81 days, showing the number of days it takes for the company to pay its suppliers.

Overall Analysis:
- SpartanNash Co's inventory management has shown some improvement towards the end of the period, as seen in the decreasing trend of DOH.
- The company's collection of accounts receivable and payment to suppliers exhibited fluctuations and inconsistent reporting, which could be areas for improvement in operational efficiency and financial management.
- Continuous monitoring and improvement in inventory turnover, accounts receivable collection, and payables management are essential to optimize working capital and overall financial performance.

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Long-term

The fixed asset turnover ratio indicates how efficiently SpartanNash Co is utilizing its fixed assets to generate sales. A higher ratio implies that the company is generating more revenue per dollar of fixed assets invested. From the data provided, we observe fluctuations in the fixed asset turnover ratio over time, ranging from a low of 9.70 in December 31, 2021, to a high of 17.25 in October 8, 2022. This suggests varying levels of efficiency in utilizing fixed assets for revenue generation.

On the other hand, the total asset turnover ratio reflects how well SpartanNash Co is using all its assets to generate sales. A higher total asset turnover ratio indicates that the company is generating more revenue for each dollar of assets it owns. The data reveals fluctuations in the total asset turnover ratio as well, ranging from 3.73 on October 9, 2021, to 4.54 on April 22, 2023. This indicates changes in the company's ability to generate sales relative to its total asset base.

Overall, the company's fixed asset turnover and total asset turnover ratios have shown variability over the periods analyzed, suggesting fluctuations in the efficiency of asset utilization and revenue generation. It would be important for SpartanNash Co to closely monitor and manage these ratios to ensure optimal utilization of assets and improve overall operational efficiency.