Tootsie Roll Industries Inc (TR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 5.40 | 5.39 | 6.69 | 5.05 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | 3.13 | 3.11 | 3.01 | 1.88 |
Based on the provided data, let's analyze the activity ratios of Tootsie Roll Industries Inc:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Tootsie Roll's inventory turnover has improved over the years from 5.05 in 2020 to 6.69 in 2021 and then decreased slightly to 5.39 in 2022 and remained relatively stable around 5.40 in 2023.
- A higher inventory turnover indicates that the company is selling its products more frequently, which is generally seen as positive. Tootsie Roll's ratios suggest efficient inventory management, although the sudden missing value for 2024 needs to be investigated further.
2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company collects its outstanding receivables. However, all data points for receivables turnover are missing, indicating a lack of information to assess Tootsie Roll's effectiveness in collecting receivables.
3. Payables Turnover:
- The payables turnover ratio assesses how quickly a company pays its suppliers. Similar to receivables turnover, data for payables turnover is unavailable for all years, making it impossible to evaluate Tootsie Roll's payment cycle.
4. Working Capital Turnover:
- The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales. Tootsie Roll's working capital turnover has steadily increased from 1.88 in 2020 to 3.01 in 2021, 3.11 in 2022, and further to 3.13 in 2023.
- An increasing working capital turnover ratio suggests that Tootsie Roll is generating more revenue per unit of working capital, indicating improved operational efficiency and effective utilization of available funds.
In conclusion, Tootsie Roll Industries Inc exhibits strong inventory turnover and improving working capital turnover ratios, indicating efficient operations and effective management of resources. However, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall activity performance.
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 | — | 67.60 | 67.71 | 54.53 | 72.32 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data, the activity ratios for Tootsie Roll Industries Inc can be analyzed as follows:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measure how many days, on average, inventory is held before being sold. In December 31, 2020, Tootsie Roll had 72.32 days of inventory on hand, which decreased to 54.53 days by December 31, 2021. Subsequently, the days of inventory on hand increased to 67.71 days by December 31, 2022 and then slightly decreased to 67.60 days by December 31, 2023. Unfortunately, no data is available for December 31, 2024.
- A decrease in the days of inventory on hand could signal improved inventory management efficiency, while an increase may indicate potential overstocking or slowing sales.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding measure the average number of days it takes for the company to collect payments after making a sale. The data shows that there is no information available for days of sales outstanding for any of the years from 2020 to 2024.
- Typically, a lower DSO indicates that the company is collecting payments more quickly, which can be a positive sign for cash flow management.
3. Number of Days of Payables:
- The number of days of payables measures the average number of days it takes for the company to pay its suppliers. Similar to DSO, there is no information available for the number of days of payables for any of the years from 2020 to 2024.
- Monitoring the number of days of payables is important as it can give insight into the company's payment practices and relationship with suppliers.
Overall, based on the available data, Tootsie Roll Industries Inc has shown fluctuations in its days of inventory on hand over the years, while information on days of sales outstanding and number of days of payables is not provided, limiting a more comprehensive analysis of the company's activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 3.21 | 2.71 | 2.51 |
| Total asset turnover | 0.63 | 0.71 | 0.67 | 0.56 | 0.48 |
Tootsie Roll Industries Inc's fixed asset turnover ratio has shown a positive trend over the past few years, increasing from 2.51 in 2020 to 3.21 in 2022. This indicates that the company is generating more revenue for each dollar invested in fixed assets, which is a positive sign of operational efficiency and asset utilization.
On the other hand, the total asset turnover ratio has fluctuated during the period under review, with a notable increase in 2023 to 0.71 before dropping to 0.63 in 2024. Despite the variability, the overall trend suggests that Tootsie Roll Industries Inc is effectively using its total assets to generate sales, albeit with some fluctuations.
Overall, the increasing trend in fixed asset turnover and the company's ability to generate revenue from its total assets, despite some fluctuations, are positive indicators of Tootsie Roll Industries Inc's long-term operational efficiency and asset utilization.