Winnebago Industries Inc (WGO)

Short-term

Turnover ratios

Winnebago Industries, Inc.'s activity ratios provide insight into the efficiency with which the company manages its inventory, receivables, payables, and working capital.

The inventory turnover ratio indicates the number of times a company sells and replaces its inventory over a given period. Over the past five years, Winnebago's inventory turnover has ranged from 6.17 to 11.17, with a decreasing trend. This suggests that the company has been less efficient in managing its inventory turnover in recent years.

The receivables turnover ratio measures how efficiently a company is collecting revenue from its customers. Winnebago's receivables turnover has generally been high, ranging from 10.67 to 19.56 over the past five years, indicating that the company effectively collects payment from its customers.

The payables turnover ratio reflects the speed at which a company pays its suppliers. Winnebago's payables turnover has fluctuated between 15.42 and 20.56 over the past five years, suggesting a relatively consistent performance in managing its payables.

The working capital turnover ratio indicates how effectively a company utilizes its working capital to generate sales revenue. Winnebago's working capital turnover has varied from 5.57 to 9.33 over the past five years, showing fluctuations in the company's ability to generate sales revenue using its working capital.

Overall, Winnebago Industries, Inc.'s activity ratios demonstrate varying degrees of efficiency in managing inventory, receivables, payables, and working capital, which can have implications for the company's operational and financial performance.

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Average number of days

Winnebago Industries, Inc.'s activity ratios reflect the efficiency of the company in managing its inventory, receivables, and payables.

The Days of Inventory on Hand (DOH) has increased from 43.74 days in 2019 to 59.14 days in 2023, indicating that the company is holding inventory for a longer period. This could be a result of changes in production or demand patterns.

The Days of Sales Outstanding (DSO) has fluctuated over the years, but remained relatively stable. The slight decrease from 29.05 days in 2019 to 18.66 days in 2023 suggests the company has been more efficient in collecting its receivables.

The Number of Days of Payables has shown a mixed trend, fluctuating between 17.75 days in 2019 and 23.68 days in 2020, before decreasing to 18.46 days in 2023. This may indicate changes in the company's payment policies or relationships with suppliers.

Overall, the company's activity ratios suggest there have been changes in the efficiency of managing inventory, receivables, and payables. Analyzing the underlying reasons for these changes would provide further insights into the company's operational performance.

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Long-term

The long-term activity ratios of Winnebago Industries, Inc. indicate the effectiveness of the company in utilizing its long-term assets to generate sales.

The fixed asset turnover has shown a declining trend from 2019 to 2023, indicating a decrease in the company's ability to generate sales from its fixed assets. This may suggest that the company is not effectively utilizing its long-term assets to drive revenue.

On the other hand, the total asset turnover has also depicted a decrease from its peak in 2022, signaling a possible inefficiency in utilizing all types of assets to generate sales.

In conclusion, the decreasing trend in both fixed asset turnover and total asset turnover ratios raises concerns regarding Winnebago Industries' effectiveness in efficiently utilizing its long-term assets to generate revenue. Further analysis of the company's asset management practices may be warranted to address this decline in activity ratios.