WD-40 Company (WDFC)
Activity ratios
Short-term
Turnover ratios
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 5.82 | 5.83 | 5.59 | 5.23 | 4.84 | 4.32 | 3.71 | 3.36 | 3.88 | 3.75 | 4.30 | 4.05 | 4.02 | 4.54 | 4.45 | 4.66 | 4.49 | 4.31 | 4.47 | 4.36 |
| Receivables turnover | 5.00 | 4.90 | 5.30 | 5.74 | 5.42 | 5.22 | 5.06 | 5.83 | 5.75 | 5.41 | 4.97 | 5.20 | 5.45 | 4.62 | 4.77 | 4.77 | 5.06 | 5.28 | 5.53 | 6.00 |
| Payables turnover | 12.79 | 13.79 | 13.46 | 15.02 | 13.58 | 15.39 | 14.10 | 12.57 | 12.30 | 8.84 | 8.19 | 7.79 | 6.70 | 6.93 | 7.15 | 7.87 | 8.56 | 10.65 | 7.78 | 10.33 |
| Working capital turnover | 3.86 | 3.97 | 3.96 | 3.93 | 3.33 | 3.40 | 3.46 | 3.59 | 3.72 | 3.45 | 3.40 | 3.26 | 3.14 | 2.99 | 2.98 | 3.11 | 3.27 | 4.23 | 6.67 | 6.17 |
The activity ratios of WD-40 Company provide insights into its operational efficiency and management of assets and liabilities.
Inventory turnover, which measures how many times inventory is sold and replaced in a period, has been relatively stable over the past few quarters, indicating consistent sales and inventory management.
Receivables turnover, reflecting how quickly the company collects outstanding receivables, shows a decreasing trend in recent quarters, suggesting a potential need for more efficient collections or credit policies.
Payables turnover, indicating how quickly the company pays its suppliers, has varied but generally remained at a moderate level, with some fluctuations possibly reflecting changes in payment terms or supplier relationships.
Working capital turnover, demonstrating how effectively the company utilizes its working capital to generate sales, has shown fluctuations, with a decreasing trend in recent quarters. This could indicate a decrease in efficiency in using working capital to support sales growth.
Overall, the activity ratios of WD-40 Company provide a mixed picture of operational efficiency, showing areas of strength as well as potential areas for improvement in managing assets and liabilities to optimize performance.
Average number of days
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 62.75 | 62.62 | 65.29 | 69.74 | 75.42 | 84.43 | 98.48 | 108.66 | 94.02 | 97.44 | 84.87 | 90.05 | 90.70 | 80.35 | 82.01 | 78.28 | 81.20 | 84.72 | 81.74 | 83.70 |
| Days of sales outstanding (DSO) | days | 73.05 | 74.55 | 68.90 | 63.61 | 67.29 | 69.91 | 72.18 | 62.65 | 63.49 | 67.45 | 73.47 | 70.15 | 66.97 | 79.03 | 76.52 | 76.50 | 72.08 | 69.08 | 66.00 | 60.79 |
| Number of days of payables | days | 28.53 | 26.48 | 27.11 | 24.30 | 26.87 | 23.72 | 25.88 | 29.04 | 29.67 | 41.30 | 44.55 | 46.84 | 54.50 | 52.66 | 51.06 | 46.38 | 42.66 | 34.28 | 46.89 | 35.35 |
The analysis of WD-40 Company's activity ratios reveals the following trends:
1. Days of Inventory on Hand (DOH):
- The days of inventory on hand have shown slight fluctuations over the periods observed, ranging from a low of 62.62 days to a high of 108.66 days.
- There was a general increasing trend up until the most recent period, where we witnessed a slight decrease in the number of days of inventory on hand.
- The company seems to have been able to manage its inventory more efficiently in the recent period compared to previous ones.
2. Days of Sales Outstanding (DSO):
- The days of sales outstanding have also exhibited variability, with the range spanning from 62.65 days to 79.03 days.
- The trend in DSO has been somewhat inconsistent over the periods analyzed, with fluctuations observed in both increasing and decreasing directions.
- In the most recent period, there was a decline in DSO, indicating that the company has been improving its collection of accounts receivable.
3. Number of Days of Payables:
- The number of days of payables has shown fluctuations, varying between 23.72 days and 54.50 days.
- There is a noticeable increase in the number of days of payables in the earlier periods, potentially indicating a strategy of extending payment terms with suppliers.
- However, in the most recent periods, there was a decrease in the number of days of payables, suggesting a shift towards a more balanced approach in managing payables.
Overall, the activity ratios analysis suggests that WD-40 Company has been making efforts to optimize its inventory management, accounts receivable collection, and accounts payable terms to enhance operational efficiency and financial performance. The recent improvements in inventory management and accounts receivable collection are positive indicators for the company's performance and financial health.
Long-term
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 9.32 | 8.92 | 8.60 | 8.31 | 7.96 | 7.88 | 7.72 | 7.75 | 7.84 | 7.25 | 7.42 | 7.21 | 6.96 | 7.03 | 6.65 | 6.94 | 6.72 | 7.12 | 7.24 | 8.40 |
| Total asset turnover | 1.31 | 1.29 | 1.26 | 1.27 | 1.21 | 1.20 | 1.13 | 1.15 | 1.19 | 1.17 | 1.22 | 1.18 | 1.13 | 1.13 | 1.10 | 1.12 | 1.13 | 1.05 | 1.26 | 1.32 |
WD-40 Company's fixed asset turnover ratio has shown a generally increasing trend over the past five years, indicating that the company has been able to generate more revenue relative to its investment in fixed assets. This suggests improved efficiency in utilizing its property, plant, and equipment to generate sales.
On the other hand, the total asset turnover ratio has fluctuated over the same period, with some variation in the company's ability to generate sales from its total assets. However, the ratio has generally remained above 1, indicating that WD-40 Company is generating more revenue relative to its total assets.
Overall, the company's long-term activity ratios suggest that it has been effectively utilizing its assets to generate sales, with a particularly strong performance in terms of utilizing fixed assets efficiently. This efficiency may be attributed to effective asset management and operational strategies implemented by the company.