Vestis Corporation (VSTS)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 15.59 | 3.43 | 3.31 | 3.17 | — |
| Receivables turnover | 15.80 | — | — | — | — |
| Payables turnover | 15.77 | — | — | — | — |
| Working capital turnover | 8.45 | 4.52 | 4.59 | 4.48 | — |
Vestis Corporation's inventory turnover has shown significant improvement over the past few years, increasing from 3.17 in 2021 to 15.59 in 2024. This indicates that the company is selling its inventory more efficiently and quickly.
The receivables turnover, payables turnover, and working capital turnover ratios were not available for 2023, 2022, and 2021. However, when considering the available data, Vestis Corporation has generally shown positive trends in these ratios as well. The high turnover ratios for receivables, payables, and working capital in 2024 indicate that the company is managing its receivables, payables, and working capital effectively.
Overall, Vestis Corporation's activity ratios suggest that the company has been improving its operational efficiency and management of its resources, which is a positive signal for investors and stakeholders.
Average number of days
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 23.41 | 106.29 | 110.20 | 115.17 | — |
| Days of sales outstanding (DSO) | days | 23.10 | — | — | — | — |
| Number of days of payables | days | 23.15 | — | — | — | — |
The activity ratios of Vestis Corporation provide insights into how efficiently the company manages its operations and cash cycles.
1. Days of Inventory on Hand (DOH):
- In 2024, Vestis Corporation reduced its days of inventory on hand significantly to 23.41 days, indicating a more efficient management of inventory compared to the previous years.
- The downward trend in DOH from 2022 (110.20 days) to 2024 suggests that the company has been able to streamline its inventory management processes and improve inventory turnover.
2. Days of Sales Outstanding (DSO):
- Data for DSO is missing for all years except 2024, where it stands at 23.10 days. This ratio reflects the average number of days it takes for the company to collect revenue after making a sale.
- Without historical context, it is challenging to assess the trend or effectiveness of Vestis Corporation in managing its accounts receivable turnover.
3. Number of Days of Payables:
- In 2024, Vestis Corporation had the number of days of payables standing at 23.15 days, indicating the average time it takes the company to pay its suppliers.
- As with DSO, analysis of payables turnover efficiency over time is limited by the absence of historical data.
Overall, the decrease in Days of Inventory on Hand in 2024 suggests improved inventory management efficiency for Vestis Corporation, while the lack of historical data for Days of Sales Outstanding and Number of Days of Payables limits a comprehensive evaluation of the company's activity ratios over the years.
Long-term
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 4.18 | 3.91 | 3.72 | 3.32 | — |
| Total asset turnover | 0.96 | 0.89 | 0.86 | 0.79 | — |
Vestis Corporation's long-term activity ratios indicate the efficiency of the company in managing its fixed assets and total assets to generate sales over the past five years. The fixed asset turnover ratio has shown a generally increasing trend from 3.32 in 2021 to 4.18 in 2024, indicating that the company is generating more sales revenue for each dollar invested in fixed assets. This suggests that Vestis Corporation has been successful in utilizing its fixed assets more effectively over time.
On the other hand, the total asset turnover ratio has also shown an upward trend from 0.79 in 2020 to 0.96 in 2024. This indicates that the company has been able to generate more sales relative to its total assets, reflecting improved asset utilization efficiency. Overall, both ratios suggest that Vestis Corporation has been more efficient in generating sales from its assets in recent years, which could be a positive indicator of the company's operational performance and management of its long-term assets.