Vestis Corporation (VSTS)

Short-term

Turnover ratios

The inventory turnover ratio for Vestis Corporation has been relatively stable over the past four quarters, ranging from 3.27 to 3.66. This indicates that the company is efficiently managing its inventory levels as it is able to sell and replenish its inventory multiple times throughout the year.

Unfortunately, data for receivables turnover and payables turnover ratios are not provided, making it challenging to assess the efficiency of Vestis Corporation in collecting receivables and managing its payables.

The working capital turnover ratio, on the other hand, has shown slight fluctuations but has consistently remained above 4, indicating that Vestis Corporation is effectively utilizing its working capital to generate sales revenue. This suggests that the company is efficiently managing its current assets and liabilities to support its operations and generate revenue.

Overall, based on the activity ratios provided, Vestis Corporation appears to be effectively managing its inventory and working capital to support its business operations and generate sales revenue. However, a more comprehensive analysis incorporating additional activity ratios would provide a more complete picture of the company's operational efficiency.

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Average number of days

Days of inventory on hand (DOH) for Vestis Corporation have been relatively high over the past four quarters, ranging from 99.79 days to 111.68 days. This indicates that the company is holding inventory for a longer period before it is sold. The increasing trend in DOH may suggest inefficiencies in inventory management or challenges in selling goods quickly.

Days of sales outstanding (DSO) and number of days of payables data are not provided in the table, making it challenging to assess Vestis Corporation's collection and payment cycles. Without this information, it is difficult to gauge the efficiency of the company in collecting accounts receivable or managing its payables. Monitoring DSO and payables turnover ratios would provide valuable insights into the liquidity and operational efficiency of the company.

Overall, Vestis Corporation should closely monitor its inventory management practices and explore ways to reduce its Days of Inventory on Hand to improve working capital efficiency and optimize cash flow. Additionally, tracking and analyzing DSO and payables turnover ratios would provide a more complete picture of the company's operational performance and financial health.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its long-term assets. Vestis Corporation's performance in this ratio has been relatively stable over the past four quarters, ranging from 3.86 to 3.92 times. This suggests that the company is effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio reflects how well a company is utilizing all its assets to generate revenue. Vestis Corporation's total asset turnover ratio has also shown consistency, hovering around 0.87 to 0.90 over the same period. This indicates that the company is effectively converting its total assets into sales, although the efficiency is slightly lower compared to its performance with fixed assets.

Overall, Vestis Corporation's long-term activity ratios suggest that the company is efficiently utilizing both its fixed assets and total assets to generate revenue. However, there may be room for improvement in maximizing the utilization of total assets to further enhance overall performance.