Taylor Morn Home (TMHC)

Short-term

Turnover ratios

The Inventory turnover ratio for Taylor Morn Home has shown a generally increasing trend over the past few years, indicating that the company is more efficiently managing its inventory levels. This can be seen through the increase from 1.03 in March 2020 to 1.38 in December 2024, with some fluctuations in between.

On the other hand, the Receivables turnover and Payables turnover ratios are not available or provided as "—", which suggests that the data for these ratios may not be applicable or accessible. It is important to note that these ratios could provide insights into how quickly the company collects payments from customers and pays off its own obligations to suppliers.

Additionally, the Working Capital turnover ratio for Taylor Morn Home has shown some fluctuations over the years, with peaks and troughs in the values. The ratio generally increased from 1.08 in March 2020 to 1.67 in June 2024, indicating that the company is generating more revenue relative to its working capital over this period.

Overall, while the Inventory turnover ratio paints a positive picture of improved inventory management efficiency, the unavailability of data for the Receivables and Payables turnover ratios limits a comprehensive analysis of Taylor Morn Home's activity ratios. Continued monitoring and analysis of these ratios could provide a more complete understanding of the company's operational effectiveness in managing its working capital and relationships with customers and suppliers.

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Average number of days

Based on the provided data, let's analyze the activity ratios for Taylor Morn Home:

1. Days of Inventory on Hand (DOH):
The DOH ratio indicates the number of days it takes for the company to turn its inventory into sales. A lower number of days is generally favorable as it suggests efficient inventory management. Taylor Morn Home's DOH has shown a decreasing trend over the years, from 355 days on hand in March 2020 to 264 days on hand by December 2024. This indicates that the company has been improving its inventory turnover efficiency over time.

2. Days of Sales Outstanding (DSO):
The DSO ratio measures the average number of days it takes for the company to collect its accounts receivable. The absence of data for DSO implies that the company's financial statements may not provide specific details on its accounts receivable collection period. It is crucial for Taylor Morn Home to track its DSO in order to assess its ability to manage credit and collect receivables promptly.

3. Number of Days of Payables:
The number of days of payables refers to the average number of days it takes for the company to pay its suppliers. Similar to DSO, the absence of data for payables suggests a lack of available information on the company's payment terms with suppliers. Monitoring this ratio is essential for Taylor Morn Home to ensure a healthy cash flow cycle and relationship with its vendors.

In conclusion, while Taylor Morn Home has shown improvements in its inventory turnover based on the decreasing trend in DOH, the lack of data for DSO and payables highlights the importance of comprehensive financial reporting to provide a holistic view of the company's activity ratios and overall financial health.

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Long-term

Taylor Morn Home's Fixed Asset Turnover ratio indicates the efficiency with which the company utilizes its fixed assets to generate revenue. The ratio has been steadily decreasing from a high of 63.20 in September 2020 to 24.29 by September 2024. This may suggest that the company's fixed assets are not being utilized as effectively in generating sales.

On the other hand, the Total Asset Turnover ratio reflects how efficiently the company is using all its assets to generate sales. The ratio has fluctuated over the years, peaking at 0.97 in December 2022 but decreasing to 0.88 by December 2024. This trend indicates a slight decline in the overall efficiency of asset utilization to generate revenue.

Overall, the decreasing trend in both Fixed Asset Turnover and Total Asset Turnover ratios could indicate potential inefficiencies in utilizing assets to generate sales, which may require further investigation to determine the root causes and implement corrective actions.