Winnebago Industries Inc (WGO)

Short-term

Turnover ratios

Winnebago Industries Inc's activity ratios provide insight into how efficiently the company is managing its assets and operations.

1. Inventory Turnover: This ratio indicates how many times during the period the company's inventory was sold and replaced. The decreasing trend in inventory turnover from 12.31 in 2020 to 6.56 in 2024 suggests that the company may be holding onto inventory for longer periods, which could tie up cash and increase carrying costs.

2. Receivables Turnover: This ratio shows how efficiently the company collects payments from its customers. The increasing trend in receivables turnover from 10.50 in 2020 to 15.63 in 2024 indicates that Winnebago Industries has been collecting payments more quickly over the years.

3. Payables Turnover: This ratio reflects how frequently the company pays its suppliers. The increasing trend in payables turnover from 17.00 in 2020 to 19.87 in 2024 suggests that the company is taking longer to pay its trade payables, which could indicate better cash management.

4. Working Capital Turnover: This ratio measures how efficiently the company is utilizing its working capital to generate sales. The fluctuating trend in working capital turnover from 5.52 in 2021 to 5.09 in 2024 implies that the company's ability to generate sales from its working capital has varied over the years.

Overall, while Winnebago Industries Inc has shown improvements in managing its receivables and payables turnover, the decreasing trend in inventory turnover and mixed performance in working capital turnover may require further analysis to identify opportunities for operational efficiency and working capital management.

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Average number of days

Winnebago Industries Inc's activity ratios provide insights into how efficiently the company manages its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an increase over the past five years, from 29.65 days in 2020 to 55.68 days in 2024. This indicates that Winnebago is holding onto its inventory for a longer period, which may tie up working capital and increase carrying costs. It is crucial for the company to manage its inventory levels effectively to avoid overstocking or obsolescence.

2. Days of Sales Outstanding (DSO):
- The DSO trend fluctuates, with decreases in 2021 and 2022 followed by an increase in 2023 and then a decrease in 2024. A lower DSO suggests that Winnebago is collecting its accounts receivable more quickly, which is a positive sign of efficient credit and collection management. However, the recent uptick should be monitored to ensure that it does not indicate any issues with customer payments.

3. Number of Days of Payables:
- The number of days of payables has remained relatively stable over the past five years, ranging from 16.76 days in 2023 to 21.47 days in 2020. A longer period of payables indicates that Winnebago is taking more time to settle its bills with suppliers, which can help preserve cash flow. However, the company should maintain a balance in managing payables to avoid strained relationships with vendors.

Overall, Winnebago Industries Inc's activity ratios reflect fluctuations in how efficiently the company manages its working capital components. By monitoring these ratios and making strategic adjustments, the company can improve its overall operational efficiency and financial health.

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Long-term

Winnebago Industries Inc's long-term activity ratios show a fluctuating trend over the past five years. The fixed asset turnover has decreased from 13.25 in 2020 to 8.77 in 2024, indicating that the company is generating less revenue from its fixed assets, which could be a cause for concern. On the other hand, the total asset turnover has also shown a downward trend, falling from 1.43 in 2023 to 1.25 in 2024. This suggests that the company is generating less revenue from its total assets, which may be a reflection of inefficiencies in asset utilization.

Overall, Winnebago Industries Inc's long-term activity ratios raise questions about the company's ability to efficiently utilize its assets to generate revenue. Management may need to assess and improve the utilization of both fixed and total assets to enhance profitability and operational efficiency.