Tootsie Roll Industries Inc (TR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 6.04 | 5.09 | 3.85 | 4.68 | 5.45 | 4.75 | 3.48 | 4.34 | 5.39 | 4.92 | 4.13 | 5.88 | 6.69 | 4.80 | 3.69 | 4.39 | 5.05 | 4.25 | 3.33 | 4.63 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 2.94 | 2.95 | 3.18 | 3.16 | 3.13 | 3.28 | 3.22 | 3.10 | 3.12 | 2.97 | 3.19 | 3.09 | 3.01 | 2.88 | 2.49 | 2.07 | 411.28 | 435.86 | 432.67 | 401.50 |
The analysis of Tootsie Roll Industries Inc activity ratios reveals interesting trends.
1. Inventory turnover has shown fluctuations over the years, ranging from a low of 3.33 to a high of 6.04. Generally, the company manages its inventory efficiently, with an average turnover ratio of around 4.5. This indicates that the company is able to sell and replace its inventory multiple times within a year.
2. Receivables turnover data is unavailable, indicating that receivables turnover analysis is not possible. This lack of data makes it challenging to evaluate the efficiency of the company in collecting outstanding customer payments.
3. Payables turnover data is also not provided, so the analysis of the company's ability to manage its trade payables effectively is not possible. This hinders the assessment of how quickly the company pays its suppliers.
4. The working capital turnover ratio has been relatively stable, reflecting the efficiency of the company in utilizing its working capital to generate sales. The ratio has ranged from 2.07 to 3.28, with an average of around 3. This suggests that the company efficiently uses its working capital to support its operations and generate revenue.
In conclusion, while the analysis of inventory turnover and working capital turnover ratios provides insights into Tootsie Roll Industries Inc's operational efficiency, the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall financial performance.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 60.42 | 71.75 | 94.77 | 77.98 | 67.03 | 76.86 | 104.90 | 84.07 | 67.71 | 74.17 | 88.30 | 62.06 | 54.53 | 76.01 | 98.98 | 83.08 | 72.32 | 85.92 | 109.53 | 78.84 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data on Tootsie Roll Industries Inc activity ratios, the analysis focuses on Days of Inventory on Hand (DOH) as the other two ratios, Days of Sales Outstanding (DSO) and Number of Days of Payables, are not available.
1. Days of Inventory on Hand (DOH):
- The DOH ratio indicates the number of days it takes for a company to turn its inventory into sales. A lower DOH value is generally preferred as it suggests efficient inventory management.
- Over the past five years, Tootsie Roll Industries Inc has shown fluctuations in its DOH ratio, ranging from a low of 54.53 days to a high of 109.53 days.
- A significant improvement was observed from December 31, 2021, to December 31, 2022, where the DOH decreased from 67.71 days to 60.42 days.
- However, the DOH ratio increased again in the subsequent periods, reaching 94.77 days on June 30, 2024.
- Tootsie Roll Industries Inc should continue monitoring and managing its inventory levels effectively to ensure optimal operations and minimize holding costs.
It is important to note that without data on Days of Sales Outstanding (DSO) and Number of Days of Payables, a complete analysis of Tootsie Roll Industries Inc's activity ratios may be limited.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 3.48 | 3.36 | 3.32 | 3.22 | 3.14 | 2.98 | 2.87 | 2.71 | 2.56 | 2.54 | 2.50 | 550.74 | 557.95 | 560.19 | 555.11 |
| Total asset turnover | 0.63 | 0.64 | 0.68 | 0.70 | 0.71 | 0.71 | 0.70 | 0.69 | 0.67 | 0.64 | 0.63 | 0.60 | 0.56 | 0.52 | 0.51 | 0.48 | 104.79 | 105.06 | 105.90 | 107.99 |
Tootsie Roll Industries Inc's long-term activity ratios reveal important insights into the company's efficiency in utilizing its assets.
The fixed asset turnover ratio has shown an increasing trend over the periods provided, indicating that the company has been more efficient in generating sales from its fixed assets over time. The ratio increased from 555.11 in March 2020 to 3.48 in September 2023, showcasing a significant improvement in asset utilization efficiency. Although data is not available for the later periods, the increasing trend suggests a positive operational performance in terms of fixed asset turnover.
On the other hand, the total asset turnover ratio, which reflects the company's overall asset utilization efficiency, started at 107.99 in March 2020 and decreased to 0.63 in June 2024. While the ratio fluctuated slightly within the initial periods, it began to decrease consistently after March 2023. This decline indicates a reduction in the company's ability to generate sales from its total assets, implying a potential decrease in operational efficiency.
In conclusion, Tootsie Roll Industries Inc has shown improvements in its fixed asset turnover ratio, suggesting enhanced efficiency in utilizing fixed assets for generating sales. However, the declining trend in the total asset turnover ratio raises concerns about the company's overall asset utilization efficiency. Further analysis and examination are required to understand the factors driving these trends and their implications for the company's long-term operational performance.