Tootsie Roll Industries Inc (TR)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 11.27 6.14 4.54 5.54 10.19 6.27 5.33 7.84 13.15 6.59 5.11 6.19 9.20 5.85 4.19 5.35 8.38 5.02 3.85 5.44
Receivables turnover 13.79 9.48 14.54 11.93 11.75 8.10 14.25 11.72 10.40 5.03 10.52 9.98 8.38 5.12 12.31 10.97 8.71 5.88 14.08 11.81
Payables turnover 42.21 29.12 28.64 27.91 22.82 18.28 24.91 24.48 33.65 19.31 22.20 29.61 31.69 26.22 30.71 23.97 28.72 19.62 24.84 26.43
Working capital turnover 3.12 3.30 3.24 3.12 3.14 2.99 3.21 3.12 3.03 2.22 1.88 1.53 1.38 1.46 1.55 1.54 1.43 2.04 2.35 2.28

Tootsie Roll Industries, Inc.'s activity ratios provide insights into the efficiency of the company's operations.

1. Inventory Turnover: The inventory turnover ratio indicates how many times Tootsie Roll's inventory is sold and replaced over a period. The trend shows fluctuation, with Q4 2023 and Q4 2022 having relatively high inventory turnover compared to previous quarters. This could suggest better management of inventory in those periods.

2. Receivables Turnover: This ratio reflects how quickly Tootsie Roll collects cash from its credit sales. The data shows a varying trend, with significant peaks in Q2 2023 and Q2 2022. A high receivables turnover ratio is favorable as it indicates efficient collection efforts.

3. Payables Turnover: The payables turnover ratio measures how quickly Tootsie Roll pays its suppliers. A higher ratio may imply that the company is paying its bills more quickly. The trend shows an increasing payables turnover over recent quarters, suggesting improved payment efficiency.

4. Working Capital Turnover: This ratio evaluates how efficiently working capital is utilized to generate sales. Tootsie Roll's working capital turnover remains relatively stable across the quarters, indicating consistent management of working capital to support revenue generation.

In summary, Tootsie Roll Industries, Inc. demonstrates strong efficiency in managing its inventory, accounts receivable, and accounts payable, as depicted by its activity ratios. The company's ability to turn over inventory, collect receivables, and pay bills efficiently is essential for maintaining healthy cash flow and operational performance.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 32.39 59.41 80.48 65.83 35.82 58.20 68.51 46.58 27.76 55.40 71.45 58.97 39.68 62.40 87.16 68.24 43.55 72.69 94.71 67.09
Days of sales outstanding (DSO) days 26.47 38.51 25.11 30.60 31.06 45.08 25.61 31.15 35.08 72.58 34.69 36.59 43.55 71.23 29.66 33.28 41.90 62.08 25.93 30.90
Number of days of payables days 8.65 12.53 12.74 13.08 15.99 19.97 14.65 14.91 10.85 18.90 16.44 12.33 11.52 13.92 11.89 15.23 12.71 18.60 14.69 13.81

Tootsie Roll Industries, Inc.'s activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The trend of DOH shows fluctuation over the past eight quarters, ranging from a low of 62.06 days in Q1 2022 to a high of 105.29 days in Q2 2023.
- A higher number of days indicates that the company is holding more inventory on hand, which may tie up capital and increase carrying costs. Conversely, a lower number of days may imply efficient inventory management.
- Tootsie Roll Industries should aim to strike a balance where inventory turnover is optimized, ensuring products move swiftly without risking stockouts.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect revenue after making a sale.
- Tootsie Roll Industries has experienced variability in DSO, with the lowest figure of 28.12 days in Q2 2022 and the highest at 47.43 days in Q3 2022.
- A decreasing trend in DSO suggests improved collection efficiency and cash flow management, while an increasing trend may signal potential issues with credit policies or customer payment delays.

3. Number of Days of Payables:
- This ratio reflects the average number of days it takes the company to pay its suppliers.
- Tootsie Roll Industries' days payables has ranged from 11.26 days in Q4 2023 to 25.45 days in Q3 2022.
- A longer time to pay suppliers may indicate favorable credit terms, but it could also strain relationships if extended excessively. Shorter payment periods might lead to discounts but could also signal financial distress if being paid off too quickly.

In conclusion, Tootsie Roll Industries should monitor these activity ratios closely to ensure efficient management of inventory, timely collection of receivables, and balanced payment of payables to optimize working capital and overall operational efficiency.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 3.44 3.49 3.38 3.34 3.25 3.16 3.00 2.90 2.74 1.97 1.92 1.84 1.84 1.87 2.01 2.12 2.08 2.78 2.78 2.77
Total asset turnover 0.71 0.71 0.70 0.69 0.68 0.65 0.64 0.60 0.56 0.40 0.38 0.35 0.35 0.35 0.38 0.41 0.40 0.53 0.55 0.55

Tootsie Roll Industries, Inc.'s long-term activity ratios provide insights into how efficiently the company is utilizing its assets to generate sales.

The fixed asset turnover ratio has shown a generally increasing trend from 2.89 in Q1 2022 to 3.56 in Q4 2023. This indicates that Tootsie Roll Industries has been generating more sales from its fixed assets over time. A higher fixed asset turnover ratio implies that the company is effectively utilizing its property, plant, and equipment to generate revenue.

On the other hand, the total asset turnover ratio has also seen a positive trend, increasing from 0.60 in Q1 2022 to 0.71 in Q4 2023. This suggests that the company has become more efficient in generating sales revenue from all of its assets, including both fixed and current assets.

Overall, both the fixed asset turnover and total asset turnover ratios show a positive trend, indicating that Tootsie Roll Industries, Inc. has been improving its efficiency in utilizing its assets to drive sales growth over the analyzed period.