TKO Group Holdings, Inc. (TKO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 1,261.96 | 430.26 | 31.88 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 14.10 | 82.55 | 29.91 | 1.36 | 3.89 |
The inventory turnover ratio for TKO Group Holdings, Inc. has seen a significant increase over the years, reflecting the company's ability to efficiently manage its inventory levels and turn them into sales. The ratio has grown from 31.88 in 2020 to 1,261.96 in 2022, indicating a substantial improvement in inventory management efficiency.
On the other hand, the receivables turnover ratio is not provided for any of the years, making it challenging to assess how quickly the company is collecting payments from its customers.
Similarly, the payables turnover ratio is not available for the years provided, which hinders our ability to evaluate how effectively the company is managing its accounts payable and settling its obligations to suppliers.
Regarding the working capital turnover ratio, we observe fluctuations in the efficiency of TKO Group Holdings, Inc. in utilizing its working capital to generate revenue. The ratio has varied significantly from 3.89 in 2020 to 82.55 in 2023, with a subsequent drop to 14.10 in 2024. This suggests fluctuations in the company's ability to generate sales relative to the working capital invested over the years.
In conclusion, while TKO Group Holdings, Inc. has shown remarkable improvement in inventory turnover, the absence of receivables turnover and payables turnover data limits a comprehensive analysis of the company's working capital management and overall operational efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 0.29 | 0.85 | 11.45 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
TKO Group Holdings, Inc.'s activity ratios depict the efficiency of its operations in managing inventory, accounts receivable, and accounts payable.
1. Days of Inventory on Hand (DOH):
- In 2020, TKO had inventory on hand for an average of 11.45 days, indicating they took about 11.45 days to sell their inventory.
- The company significantly improved its inventory management in subsequent years, with only 0.85 days of inventory on hand in 2021 and a further reduction to 0.29 days in 2022.
- There is missing data for 2023 and 2024, which may require additional information to assess the trend over these years.
2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no available data for DSO across the years from 2020 to 2024. DSO measures how quickly the company collects outstanding receivables from its customers, which is critical for assessing its liquidity and cash flow.
3. Number of Days of Payables:
- Data for the number of days of payables is also unavailable for the years between 2020 and 2024. This ratio would have provided insights into how long the company took to pay its suppliers, which can impact its working capital management and relationships with vendors.
In conclusion, while TKO Group Holdings, Inc. has shown significant improvement in managing its inventory efficiently, a lack of data for DSO and payables hinders a complete assessment of its overall activity ratios. Further information would be needed to fully understand the company's performance in these areas.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.78 | 2.08 | 1.83 |
| Total asset turnover | 0.22 | 0.13 | 0.32 | 0.24 | 0.68 |
TKO Group Holdings, Inc.'s fixed asset turnover ratio has shown some fluctuation over the years. It increased from 1.83 in 2020 to 2.08 in 2021, indicating that the company generated $2.08 in sales for every dollar of fixed assets invested. However, in 2022, the ratio dropped to 1.78, suggesting a slight decrease in the efficiency of generating sales from fixed assets. Unfortunately, data is unavailable for 2023 and 2024, making it difficult to assess the trend in those years.
On the other hand, TKO Group Holdings, Inc.'s total asset turnover ratio showed a different pattern. In 2020, the ratio was 0.68, indicating that the company generated $0.68 in sales for each dollar invested in total assets. However, there was a significant decrease in 2021, with the ratio dropping to 0.24, implying a decline in sales generated from total assets. Although there was some improvement in 2022 with a ratio of 0.32, the efficiency of generating sales from total assets remained relatively low. The ratios for 2023 and 2024 are 0.13 and 0.22, respectively, indicating a further decline in total asset turnover efficiency.