Tractor Supply Company (TSCO)
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 | 3.46 | 3.16 | 3.20 | 3.11 | 3.53 | 3.39 | 3.59 | 3.13 | 3.44 | 3.31 | 3.50 | 3.28 | 3.77 | 3.61 | 3.85 | 3.54 | 3.85 | 3.36 | 3.59 | 2.92 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 15.02 | 12.98 | 13.44 | 14.63 | 13.39 | 12.26 | 11.02 | 13.05 | 18.17 | 13.32 | 13.42 | 13.38 | 10.74 | 8.64 | 8.01 | 8.15 | 7.01 | 9.57 | 10.67 | 8.61 |
Tractor Supply Company's inventory turnover ratio has been relatively stable over the past few years, ranging between 2.92 and 3.85. This indicates that the company is efficiently managing its inventory by selling and replacing it within a reasonable timeframe. The consistency in this ratio suggests that Tractor Supply is effectively balancing its inventory levels with customer demand.
The receivables turnover and payables turnover ratios are not available in the data provided, which limits our ability to assess the efficiency of the company's accounts receivable and accounts payable management.
In terms of working capital turnover, Tractor Supply Company has shown a consistent improvement in utilizing its working capital to generate sales revenue. The ratio has increased steadily from 8.61 in March 2020 to 15.02 in December 2024. This indicates that the company is efficiently using its working capital to support its operations and drive sales growth over time.
Overall, based on the available activity ratios, Tractor Supply Company appears to be effectively managing its inventory and working capital to support its business operations and generate sales. However, additional information on accounts receivable and accounts payable turnover would provide a more comprehensive view of the company's overall efficiency in managing its working capital cycle.
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 | 105.63 | 115.56 | 113.98 | 117.43 | 103.54 | 107.72 | 101.70 | 116.72 | 106.16 | 110.18 | 104.27 | 111.42 | 96.90 | 101.15 | 94.91 | 103.25 | 94.90 | 108.77 | 101.75 | 124.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Tractor Supply Company's Days of Inventory on Hand (DOH) has exhibited fluctuations over the period analyzed. The DOH was relatively high in March 2020 at 124.87 days, indicating an extended period of inventory turnover. Subsequently, there was a decreasing trend in DOH, reaching a low of 94.90 days by December 2020, which suggests more efficient management of inventory levels. However, there were fluctuations in subsequent periods, with the DOH ranging between 94.91 days to 117.43 days, indicating variability in managing inventory levels.
Regarding Days of Sales Outstanding (DSO) and Number of Days of Payables, the data provided were not available for analysis. DSO typically reflects the average number of days it takes for a company to collect revenue after a sale, while the Number of Days of Payables indicates the average number of days it takes for a company to pay its suppliers.
In general, a lower DOH signifies efficient inventory management, allowing the company to minimize carrying costs and potentially improve cash flows. However, a very low DOH could also indicate stockouts or inefficiencies in the supply chain. It would be beneficial to examine the DSO and payables data to gain a more comprehensive understanding of Tractor Supply Company's working capital management and overall financial health.
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 | — | — | — | — | — | — | 6.75 | 6.75 | 6.82 | 2.91 | 2.94 | 2.95 | 2.89 | 2.95 | 2.96 | 8.90 | 8.50 | 8.43 | 8.11 | 7.43 |
| Total asset turnover | 1.52 | 1.51 | 1.50 | 1.53 | 1.58 | 1.62 | 1.63 | 1.64 | 1.67 | 1.71 | 1.69 | 1.69 | 1.64 | 1.59 | 1.55 | 1.56 | 1.51 | 1.45 | 1.41 | 1.41 |
Tractor Supply Company's fixed asset turnover ratio has shown fluctuations over the years. It increased steadily from March 2020 to December 2022, indicating the company was efficiently generating sales from its fixed assets. However, a significant drop was observed in the ratio from March 2023 onwards, with the latest available data showing a lower turnover.
In comparison, the total asset turnover ratio exhibited a generally increasing trend from March 2020 to September 2022, suggesting that the company was effectively utilizing its total assets to generate revenue. However, there was a slight decline in the ratio towards the end of the period.
Overall, while the total asset turnover ratio reflects the company's ability to generate sales from all its assets, including fixed assets, the fixed asset turnover ratio specifically highlights the efficiency of utilizing fixed assets to generate sales revenue. The fluctuations in these ratios over time can be indicative of changes in the company's operational efficiency and asset utilization strategies.