Winnebago Industries Inc (WGO)

Short-term

Turnover ratios

Winnebago Industries Inc's inventory turnover has shown a consistent trend of around 6 to 9 times over the past years, indicating that the company efficiently manages its inventory by quickly selling and replacing stock. This is a positive sign as it minimizes the risk of obsolete inventory and boosts cash flow.

The receivables turnover ratio has fluctuated between approximately 10 to 20 times in recent years, suggesting variations in the speed at which the company collects payments from customers. A higher ratio indicates faster collection of accounts receivable, which is favorable for maintaining liquidity and reducing credit risk.

The payables turnover ratio has ranged from roughly 17 to 30 times, showcasing the frequency at which Winnebago Industries pays its suppliers. A higher ratio implies that the company efficiently settles its obligations, potentially benefiting from favorable credit terms.

The working capital turnover ratio has varied between 5 to 8 times, reflecting how effectively the company utilizes its working capital to generate sales. A higher ratio signifies efficient utilization of resources to drive revenue growth, enhance operational efficiency, and maximize profitability.

Overall, the activity ratios of Winnebago Industries Inc demonstrate a good management of inventory, receivables, payables, and working capital, contributing to the company's operational effectiveness and financial performance.

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Average number of days

Winnebago Industries Inc's activity ratios provide insights into the efficiency of its operations. The Days of Inventory on Hand (DOH) reflects the number of days it takes for the company to sell its inventory. Over the analyzed period, the DOH has shown fluctuations, ranging from 29.65 days to 58.99 days. A decreasing trend in DOH indicates that the company is selling inventory more quickly, improving efficiency.

The Days of Sales Outstanding (DSO) measures how long it takes for the company to collect revenue after a sale. Winnebago Industries Inc's DSO has varied from 15.71 days to 34.55 days, indicating fluctuations in the collection period. A lower DSO suggests efficient credit management and timely collection of receivables.

The Number of Days of Payables measures how long it takes the company to pay its suppliers. Winnebago Industries Inc's payables period ranges from 11.48 days to 21.47 days. A longer payables period may indicate a favorable situation for the company, allowing it to hold onto cash longer.

Overall, analyzing these activity ratios provides valuable insights into Winnebago Industries Inc's inventory management, accounts receivable collection efficiency, and payment practices with suppliers, which are critical aspects of its operational performance.

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Long-term

Winnebago Industries Inc's fixed asset turnover ratio has shown a decreasing trend from 18.62 in May 2022 to 8.75 in August 2024. This indicates that the company is generating fewer revenues relative to its fixed assets over the period analyzed. On the other hand, the total asset turnover ratio has been relatively stable, averaging around 1.5 over the same period. This suggests that the company has been able to efficiently utilize its total assets to generate sales.

A declining fixed asset turnover ratio may indicate that Winnebago Industries Inc may be facing challenges in effectively utilizing its fixed assets to generate revenue or that the fixed assets are not being fully utilized. It is important for the company to investigate the reasons behind this trend and take necessary steps to improve the efficiency of its fixed asset utilization to increase profitability.