Thryv Holdings Inc (THRY)

Short-term

Turnover ratios

Thryv Holdings Inc's activity ratios provide insight into the efficiency with which the company manages its resources.

1. Receivables Turnover: Thryv's receivables turnover has been gradually increasing over the past four years, reaching 4.40 in 2023. This indicates that the company is collecting payments from its customers more quickly each year.

2. Payables Turnover: Thryv's payables turnover has also shown an upward trend, with a significant increase from 22.24 in 2022 to 32.73 in 2023. This suggests that the company is paying off its suppliers at a faster rate, which could be beneficial for cash flow management.

3. Working Capital Turnover: Thryv's working capital turnover has experienced a substantial increase from 6.84 in 2020 to 249.31 in 2023. This surge indicates that the company is generating revenue more efficiently relative to its working capital, which reflects positively on its operational efficiency and overall performance.

Overall, Thryv Holdings Inc's activity ratios demonstrate improvements in managing both receivables and payables, as well as enhancing the utilization of working capital over the past four years.

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Average number of days

Days of inventory on hand (DOH) is not provided in the table, making it challenging to assess the efficiency of Thryv Holdings Inc in managing its inventory levels. However, looking at the trend of Days of Sales Outstanding (DSO) over the past four years, there seems to be a positive sign as it has decreased from 100.61 days in 2020 to 83.03 days in 2023. This indicates that the company has been collecting its accounts receivable faster, which is a positive trend.

On the other hand, the number of days of payables shows a fluctuating trend, with 11.15 days in 2023, 16.41 days in 2022, 7.70 days in 2021, and 8.89 days in 2020. A lower number of days of payables suggests that the company is paying its suppliers quicker, which can impact its cash flow management.

Overall, while the DSO trend is showing improvement, the fluctuating trend in the number of days of payables may need to be monitored closely to ensure a balanced approach in managing working capital effectively.

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Long-term

Thryv Holdings Inc's long-term activity ratios indicate the efficiency with which the company utilizes its assets to generate revenue. The fixed asset turnover ratio, which measures the company's ability to generate sales from its fixed assets, has shown a fluctuating trend over the past four years. The ratio was highest in 2022 at 28.40, indicating that the company effectively utilized its fixed assets to generate revenue during that year. However, it decreased in 2023 to 23.76 but still remained at a relatively high level compared to previous years, suggesting continued efficiency in utilizing fixed assets for revenue generation.

On the other hand, the total asset turnover ratio, which measures the company's ability to generate sales from all assets, also displayed fluctuations over the same period. The ratio increased from 2020 to 2021, indicating improved efficiency in utilizing total assets to generate revenue. However, it decreased in 2022 before increasing again in 2023. The ratio in 2023 at 1.17 indicates that Thryv Holdings Inc generated $1.17 in sales for every dollar of total assets, reflecting an overall improvement in asset utilization efficiency compared to the previous years.

In conclusion, while the fixed asset turnover ratio fluctuated, the total asset turnover ratio showed an improvement in efficiency over the past four years, suggesting that Thryv Holdings Inc has been able to better utilize its assets to generate revenue, especially in 2023.