Upbound Group Inc. (UPBD)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently a company is managing its assets and liabilities to generate sales. In the case of Upbound Group Inc., the inventory turnover ratio has shown a significant improvement over the years, increasing from 209.97 in 2020 to 405.69 in 2024. This indicates that the company is selling its inventory more frequently, which is generally a positive sign as it signifies efficient inventory management and faster conversion of inventory into sales.

On the other hand, the receivables turnover, payables turnover, and working capital turnover ratios are marked as "—", indicating that the specific data for these ratios is not provided in the given information. While this limits a comprehensive analysis of Upbound Group Inc.'s efficiency in managing receivables, payables, and working capital, it is worth noting that these ratios play a crucial role in evaluating the company's overall operational efficiency and financial health.

In conclusion, based on the available data, Upbound Group Inc. has shown a positive trend in its inventory turnover ratio, reflecting improved efficiency in converting inventory into sales. However, a complete analysis of the company's activity ratios would require additional information regarding its receivables turnover, payables turnover, and working capital turnover to provide a more insightful assessment of its operational performance.

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Average number of days

The activity ratios of Upbound Group Inc. indicate efficient management of its operational processes.

1. Days of Inventory on Hand (DOH):
- Upbound Group Inc. maintained a low level of inventory on hand over the years, with the number of days decreasing from 1.74 days on December 31, 2020, to 0.90 days on December 31, 2024. This signifies that the company is effectively managing its inventory levels to minimize excess stock and associated carrying costs.

2. Days of Sales Outstanding (DSO):
- The data provided does not include information on Days of Sales Outstanding (DSO) for Upbound Group Inc., indicating that details on the average number of days it takes to collect revenue from customers are not available. Ideally, a lower DSO value would indicate quicker collection of accounts receivable, leading to improved cash flow and liquidity.

3. Number of Days of Payables:
- Similar to DSO, there is no data available regarding the Number of Days of Payables for Upbound Group Inc. This metric typically signifies the average number of days it takes the company to pay its suppliers. A longer payable period may indicate favorable terms with suppliers or a cash flow management strategy.

Overall, the data suggests that Upbound Group Inc. efficiently manages its inventory levels, but further details on receivables and payables management are needed to provide a complete analysis of its working capital efficiency.

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Long-term

Upbound Group Inc.'s fixed asset turnover ratio has gradually decreased from 19.87 in 2020 to 14.62 in 2023, with a slight uptick to 17.00 in 2024. This indicates that the company is generating less revenue for every dollar invested in fixed assets over this period.

Regarding total asset turnover, the ratio has fluctuated slightly over the years, ranging from 1.47 in 2023 to 1.63 in 2024. Despite the fluctuations, the company's ability to generate sales from its total assets has remained relatively stable.

In conclusion, Upbound Group Inc. should focus on optimizing the utilization of its fixed assets to improve its fixed asset turnover ratio, ultimately driving higher efficiency and profitability in the long term.