Taylor Morn Home (TMHC)

Short-term

Turnover ratios

Based on the provided data for Taylor Morn Home's activity ratios, we can observe the following trends:

1. Inventory Turnover: The inventory turnover ratio measures the efficiency of a company in managing its inventory. Taylor Morn Home's inventory turnover has shown a fluctuating trend over the past five years, ranging from 1.28 in 2020 to 1.68 in 2022. A higher inventory turnover indicates that inventory is selling quickly, while a lower turnover may suggest issues with sales or overstocking.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly a company collects its accounts receivable. In this case, the data shows that receivables turnover is unavailable (indicated as "—") for all years provided. This lack of data may suggest that Taylor Morn Home does not extend credit to customers or does not track this ratio.

3. Payables Turnover: The payables turnover ratio assesses how effectively a company manages its accounts payable. Similar to receivables turnover, the data indicates that payables turnover is also missing (indicated as "—") for all years. This absence may imply that Taylor Morn Home does not provide payment terms to suppliers or does not monitor this ratio closely.

4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. Taylor Morn Home's working capital turnover has seen some variation, reaching a peak of 1.79 in 2022. A higher turnover ratio suggests better utilization of working capital to drive sales.

In conclusion, Taylor Morn Home's activity ratios indicate mixed performance in inventory management and working capital utilization, while data on receivables and payables turnover is lacking. Further analysis and comparison with industry benchmarks could provide more insights into the company's operational efficiency and financial health.

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Average number of days

Taylor Morn Home's Days of Inventory on Hand (DOH) have decreased from 285.23 days in 2020 to 264.54 days in 2024. This indicates that the company is managing its inventory more efficiently over time, with a lower number of days required to sell its inventory.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not available, suggesting that Taylor Morn Home may not have significant accounts receivable or accounts payable activity that would impact these ratios. It is important for the company to monitor these ratios in the future to assess its efficiency in collecting receivables and managing payables.

Overall, the decreasing trend in Days of Inventory on Hand is a positive sign for Taylor Morn Home, indicating improved inventory management efficiency, which can lead to better cash flow and profitability.

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Long-term

The fixed asset turnover ratio for Taylor Morn Home has shown a decreasing trend over the years, declining from 62.59 in 2020 to 35.10 in 2024. This indicates that the company is generating less revenue for each dollar invested in fixed assets, reflecting potential inefficiencies in asset utilization or declining sales relative to fixed assets.

In contrast, the total asset turnover ratio has fluctuated but generally maintained stability, ranging from 0.79 in 2020 to 0.88 in 2024. This suggests that the company has been relatively effective in generating sales revenue in relation to its total assets, with a slight improvement in asset utilization efficiency over the years.

Overall, while the total asset turnover ratio indicates stable performance in utilizing all assets to generate sales, the declining trend in the fixed asset turnover ratio signals a need for Taylor Morn Home to reevaluate its management of fixed assets to improve efficiency and profitability in the long term.