Viad Corp (VVI)

Short-term

Turnover ratios

Viad Corp.'s activity ratios provide insights into its efficiency in managing inventory, receivables, payables, and working capital turnover.

1. Inventory Turnover:
- Viad Corp.'s inventory turnover has shown a consistent improvement over the years, indicating better efficiency in selling its inventory.
- The significant increase in inventory turnover from 2020 to 2023 (60.92 to 111.31) suggests the company is managing its inventory more effectively, possibly through better inventory control or demand forecasting.

2. Receivables Turnover:
- Viad Corp.'s receivables turnover fluctuated over the past years, with a notable peak in 2020 and a dip in 2021 before stabilizing in 2022 and 2023.
- The fluctuations in receivables turnover may indicate changes in the company's sales practices, credit policies, or the efficiency of collections.

3. Payables Turnover:
- The payables turnover ratio for Viad Corp. shows a relatively stable trend, indicating consistency in the company's payment practices with its suppliers.
- The consistent payables turnover suggests that Viad Corp. is managing its payables efficiently and effectively, potentially optimizing cash flow management.

4. Working Capital Turnover:
- The working capital turnover ratio, while showing a significant increase in 2021 and 2023, lacks data for 2020, and 2019, making it difficult to assess the trend accurately.
- The spike in working capital turnover in 2021 and sustained high ratio in 2023 may indicate improvements in Viad Corp.'s ability to utilize its working capital to generate revenue.

In conclusion, Viad Corp.'s activity ratios demonstrate improvements in managing inventory and working capital turnover, with relatively stable receivables and payables turnover. These ratios suggest that the company is efficiently utilizing its assets and resources to drive operational performance and potentially enhance profitability.

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Average number of days

Activity ratios provide insights into how efficiently a company is managing its assets and liabilities to generate sales. Let's analyze Viad Corp.'s activity ratios over the past five years:

1. Days of Inventory on Hand (DOH):
- Viad Corp. has shown a decreasing trend in its DOH from 5.99 days in 2020 to 3.28 days in 2023. This indicates that the company has been managing its inventory more efficiently by reducing the number of days it takes to sell its inventory.
- A lower DOH is generally favorable as it implies that inventory is turning over quickly, reducing holding costs and the risk of obsolescence.

2. Days of Sales Outstanding (DSO):
- Viad Corp. experienced fluctuations in its DSO over the years, with the highest DSO of 67.53 days in 2021 and the lowest of 15.97 days in 2020. In 2023, the DSO was 37.92 days.
- A lower DSO signifies that the company is collecting its accounts receivable more quickly, improving its cash flow and reducing the risk of bad debts.

3. Number of Days of Payables:
- Viad Corp.'s payables period remained relatively stable over the years, with minor fluctuations. In 2023, the company had 25.00 days of payables, similar to the previous year.
- A longer payable period indicates that the company is taking longer to pay its suppliers, which can be beneficial for conserving cash and improving working capital management.

In conclusion, Viad Corp. has shown improvements in inventory management and maintained stable payable periods over the years. However, there have been fluctuations in the collection of accounts receivable, suggesting a need for continued monitoring of the company's credit policies and customer payments. Overall, the activity ratios reflect a mix of efficiency and stability in Viad Corp.'s operations.

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Long-term

Viad Corp.'s long-term activity ratios provide insights into how efficiently the company is utilizing its fixed and total assets to generate revenue over the years.

The fixed asset turnover has shown an increasing trend from 2019 to 2023, with the ratio increasing from 2.74 in 2019 to 2.09 in 2023. This indicates that Viad Corp. is generating more revenue per dollar invested in fixed assets. The company's ability to efficiently utilize its fixed assets has improved over time.

On the other hand, the total asset turnover ratio has also exhibited a positive trend over the same period. It increased from 1.04 in 2019 to 1.09 in 2023. This reflects that Viad Corp. is generating more revenue relative to its total assets. The company's overall efficiency in generating sales from its total assets has shown improvement over the years.

Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios suggest that Viad Corp. has been effectively managing its assets to drive sales growth and improve operational efficiency over the period under review.