TKO Group Holdings, Inc. (TKO)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate sales revenue.

1. Inventory turnover measures how many times a company sells and replaces its inventory during a specific period. TKO Group Holdings, Inc. saw a significant increase in inventory turnover from 80.80 in Q4 2021 to 1,261.96 in Q4 2023. This indicates that the company is selling its inventory much faster, possibly due to effective inventory management or strong demand for its products.

2. Receivables turnover reflects how quickly a company collects payments from its customers. As all data points are marked as "Not Available," it is challenging to assess TKO's efficiency in collecting receivables during the given periods.

3. Payables turnover measures the speed at which a company pays its suppliers. Since all data points are marked as "Not Available," it is unclear how efficiently TKO is managing its payables during the specified periods.

4. Working capital turnover ratio shows how effectively a company utilizes its working capital to generate sales. TKO's working capital turnover ranged from 4.32 to 82.55, indicating varying degrees of efficiency in utilizing working capital. The jump from 18.82 in Q2 2023 to 82.55 in Q4 2023 suggests a significant improvement in utilizing working capital effectively, potentially leading to increased sales.

In conclusion, while TKO Group Holdings, Inc. has shown impressive improvements in inventory turnover and working capital turnover, further data on receivables and payables turnover ratios is needed to provide a complete analysis of the company's activity ratios and overall efficiency in managing its assets and liabilities.

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Average number of days

Based on the data provided for TKO Group Holdings, Inc., we can analyze the company's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures how many days, on average, inventory is held before being sold.
- TKO Group Holdings, Inc. experienced fluctuations in its DOH over the reporting periods, ranging from 4.52 days to 0.29 days.
- A decreasing trend in DOH indicates that the company is selling its inventory faster, which may be due to efficient inventory management practices or changes in demand.

2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for the company to collect payment after making a sale.
- The data provided shows that DSO was not available for any of the reporting periods, making it difficult to assess the company's efficiency in collecting receivables.

3. Number of Days of Payables:
- This ratio reflects the average number of days it takes for the company to pay its suppliers.
- Similar to DSO, data on the Number of Days of Payables was not available for any of the periods, limiting our ability to analyze the company's payment practices to suppliers.

In summary, while we can observe fluctuations in TKO Group Holdings, Inc.'s Days of Inventory on Hand over the reporting periods, the lack of data for Days of Sales Outstanding and Number of Days of Payables restricts a comprehensive analysis of the company's overall activity ratios related to inventory management, receivables collection, and payables practices.

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Long-term

TKO Group Holdings, Inc.'s long-term activity ratios provide insights into the efficiency with which the company utilizes its assets to generate revenues over an extended period.

1. Fixed Asset Turnover:
- TKO's Fixed Asset Turnover indicates the company's ability to generate sales relative to its investment in fixed assets.
- The trend shows fluctuations in the ratio over time.
- As of September 30, 2022, the ratio was 5.94, signifying that for every dollar invested in fixed assets, the company generated $5.94 in sales.
- However, the ratio decreased significantly to 1.78 by December 31, 2022, indicating a potential decline in efficiency in utilizing fixed assets.
- There was a slight increase in the ratio in the subsequent quarters, reaching 1.80 by June 30, 2023, which suggests some improvement in the utilization of fixed assets.
- From September 30, 2023, the ratio declines until December 31, 2024, showing that the company may need to focus on enhancing its efficiency in utilizing fixed assets to drive sales.

2. Total Asset Turnover:
- TKO's Total Asset Turnover ratio reveals how efficiently the company can generate sales from its total assets.
- The trend shows varying levels of efficiency in asset utilization.
- As of December 31, 2021, the ratio was 0.90, indicating that for every dollar of assets, the company generated $0.90 in sales.
- The ratio experienced a decline over time, reaching its lowest point of 0.10 by September 30, 2023, which suggests a potential decrease in sales generation efficiency.
- However, there was an improvement in the ratio from March 31, 2024, reaching 0.22 by September 30, 2024, implying that the company may have enhanced its ability to generate sales relative to its total assets in the latter period.

Overall, the analysis of TKO Group Holdings, Inc.'s long-term activity ratios highlights the importance of efficiently utilizing both fixed and total assets to drive sales and improve overall operational performance.