Wingstop Inc (WING)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Inventory turnover — — — 3.91 318.21 4.25 4.47 3.48 341.02 — 4.15 — 253.33 4.44 4.77 4.50 302.70 4.85 8.89 6.80
Receivables turnover 31.83 34.89 33.98 36.44 37.08 36.64 38.47 — 37.79 36.77 41.17 45.11 34.83 45.23 46.46 44.38 50.48 44.39 40.25 40.28
Payables turnover 30.50 19.84 32.75 27.37 36.03 30.84 24.40 20.33 25.42 37.19 40.97 26.22 22.65 28.82 32.83 33.13 32.77 47.74 36.90 26.80
Working capital turnover 2.03 12.48 6.97 5.40 6.27 6.68 2.30 2.29 2.18 2.00 1.90 1.88 9.27 9.28 8.23 8.01 11.23 9.60 11.30 27.40

The activity ratios of Wingstop Inc provide insights into the efficiency of the company's operations in managing inventory, collecting receivables, paying payables, and utilizing working capital.

1. Inventory Turnover:
- Wingstop's inventory turnover ratio fluctuated over the period, ranging from a low of 3.48 to a high of 341.02.
- The ratio indicates how many times Wingstop's inventory was sold and replaced during the period. A higher ratio suggests efficient inventory management, whereas a lower ratio may indicate overstocking or slow sales.

2. Receivables Turnover:
- The receivables turnover ratio ranged from 31.83 to 50.48 during the period.
- This ratio reflects how efficiently Wingstop is collecting payments from its customers. A higher ratio indicates that the company is collecting receivables quickly, while a lower ratio may signal issues with credit policies or collection practices.

3. Payables Turnover:
- Wingstop's payables turnover ratio varied between 19.84 and 47.74.
- The payables turnover ratio assesses how quickly Wingstop is paying its suppliers. A higher ratio implies that the company is managing its payables effectively, while a lower ratio could indicate challenges in meeting payment obligations promptly.

4. Working Capital Turnover:
- The working capital turnover ratio for Wingstop fluctuated from 1.88 to 27.40.
- This ratio measures how effectively Wingstop is utilizing its working capital to generate sales revenue. A higher ratio suggests efficient working capital management, while a lower ratio may indicate inefficiencies in utilizing available resources.

Overall, analyzing Wingstop Inc's activity ratios provides valuable insights into the company's operational efficiency and effectiveness in managing key aspects of its business cycle.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Days of inventory on hand (DOH) days — — — 93.46 1.15 85.80 81.70 104.87 1.07 — 87.89 — 1.44 82.29 76.47 81.09 1.21 75.21 41.05 53.70
Days of sales outstanding (DSO) days 11.47 10.46 10.74 10.02 9.84 9.96 9.49 — 9.66 9.93 8.87 8.09 10.48 8.07 7.86 8.22 7.23 8.22 9.07 9.06
Number of days of payables days 11.97 18.40 11.15 13.34 10.13 11.83 14.96 17.95 14.36 9.81 8.91 13.92 16.12 12.67 11.12 11.02 11.14 7.65 9.89 13.62

The analysis of Wingstop Inc's activity ratios reveals fluctuations in key metrics over the reported periods.

1. Days of Inventory on Hand (DOH):
- The company managed its inventory efficiently with DOH decreasing from 53.70 days (March 2020) to 1.07 days (December 2022) before rising again to 93.46 days (March 2024).
- Overall, Wingstop maintained a low level of inventory on hand, which improved liquidity and reduced holding costs.

2. Days of Sales Outstanding (DSO):
- DSO remained relatively stable, with slight variations over time, ranging from 7.23 days (December 2020) to 11.47 days (December 2024).
- The company was efficient in collecting receivables, although there was a slight increase in DSO towards the end of the reporting period.

3. Number of Days of Payables:
- The number of days of payables also showed fluctuations, varying from 7.65 days (September 2020) to 18.40 days (September 2024).
- Wingstop effectively managed its payables, with periods of both quicker and longer payment cycles, impacting its working capital management.

Overall, efficiency in managing inventory, receivables, and payables is crucial for Wingstop's operational and financial performance. The company's ability to balance these activities will impact its cash flow and working capital position in the long run.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Fixed asset turnover 4.97 4.96 5.06 5.00 5.04 5.19 5.26 5.45 5.35 5.13 4.89 5.03 5.18 5.57 6.87 8.67 8.90 8.78 8.25 7.28
Total asset turnover 0.87 1.22 1.21 1.21 1.22 1.25 0.92 0.86 0.84 0.79 0.75 0.57 1.13 1.05 1.16 1.21 1.18 1.09 1.12 1.10

The Fixed Asset Turnover ratio for Wingstop Inc has exhibited a decreasing trend from March 31, 2020, to December 31, 2024, indicating a decline in the company's ability to generate sales from its fixed assets efficiently. The ratio decreased from 7.28 to 4.97 during this period, with some fluctuations along the way.

In contrast, the Total Asset Turnover ratio shows a fluctuating pattern over the same period. It started at 1.10 on March 31, 2020, reached a peak of 1.25 on September 30, 2023, and then declined to 0.87 by December 31, 2024. This ratio reflects the company's ability to generate sales from all its assets, not just fixed assets.

Overall, the decreasing trend in Fixed Asset Turnover and the fluctuating pattern in Total Asset Turnover suggest that Wingstop Inc may be facing challenges in utilizing its assets efficiently to generate sales, and further analysis may be needed to identify the underlying reasons for these trends.