SpartanNash Co (SPTN)

Short-term

Turnover ratios

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

1. Inventory Turnover:
SpartanNash Co has maintained a consistent and relatively high inventory turnover ratio, averaging around 13-15 times annually over the past few years. This indicates that the company is efficient in selling its inventory and replenishing it quickly. A higher turnover ratio suggests effective inventory management and liquidity.

2. Receivables Turnover:
The receivables turnover ratio for SpartanNash Co fluctuates but generally remains at a healthy level, averaging around 23-26 times annually. This indicates that the company efficiently collects its accounts receivable, converting sales into cash relatively quickly. A higher turnover ratio signifies effective credit management and a prompt collection process.

3. Payables Turnover:
SpartanNash Co's payables turnover ratio has been relatively stable, averaging around 15-19 times annually. A higher payables turnover ratio reflects that the company is paying its suppliers promptly and efficiently managing its accounts payable. This can be beneficial for maintaining good relationships with suppliers.

4. Working Capital Turnover:
The working capital turnover ratio for SpartanNash Co has varied over the years but generally remains at a healthy level, averaging around 20-30 times annually. This indicates that the company is effectively utilizing its working capital to generate sales. A higher turnover ratio suggests efficient use of resources and strong operational performance.

Overall, SpartanNash Co's activity ratios reflect a good level of efficiency in managing its operational activities related to inventory, receivables, payables, and working capital. Consistent performance in these areas is essential for maintaining liquidity, profitability, and sustainable growth.

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Average number of days

Days of inventory on hand (DOH) measures how efficiently SpartanNash Co manages its inventory. A lower DOH indicates that the company is selling its inventory quickly, which is favorable for cash flow. Over the observed period, DOH has shown some fluctuations but generally remains within a range of 23 to 30 days.

Days of sales outstanding (DSO) evaluates how quickly SpartanNash Co collects payments from its customers. A lower DSO suggests that the company is efficient in collecting receivables. However, DSO data is missing for some periods, making it challenging to assess trends accurately.

Number of days of payables indicates how long SpartanNash Co takes to pay its suppliers. A higher number of days of payables may indicate that the company is managing its cash flow effectively by delaying payments. The data shows some variability in the number of days of payables, ranging from around 19 to 24 days.

In summary, SpartanNash Co's activity ratios exhibit some fluctuations but generally indicate efficient management of inventory and collection of receivables. The data on payables suggests that the company may be effectively managing its payments to suppliers. However, further analysis and comparison with industry averages would provide a more comprehensive understanding of SpartanNash Co's performance in these areas.

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Long-term

The long-term activity ratios of SpartanNash Co indicate the efficiency of the company in utilizing its fixed assets and total assets to generate sales over time.

The fixed asset turnover ratio for SpartanNash Co has exhibited some fluctuations but generally remained at a stable level over the periods analyzed. The company's fixed asset turnover ratio ranged from 13.19 to 17.01, with an average value of approximately 15.72. This suggests that the company is effectively using its fixed assets to generate revenue, with each dollar of fixed assets generating between $13.19 and $17.01 of sales throughout the period under review.

In contrast, the total asset turnover ratio of SpartanNash Co has also shown variability but has generally been consistent over time. The total asset turnover ratio ranged from 3.48 to 4.48, with an average value of around 4.03. This indicates that the company is efficient in utilizing its total assets to generate revenue, with each dollar of total assets producing between $3.48 and $4.48 of sales during the periods analyzed.

Overall, the long-term activity ratios of SpartanNash Co suggest that the company is effectively managing its assets to generate sales, both in terms of fixed assets and total assets. The stable performance of these ratios indicates efficient asset utilization, which can be a positive signal for investors and stakeholders in assessing the company's operational efficiency and financial performance.