Advanced Drainage Systems Inc (WMS)
Activity ratios
Short-term
Turnover ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.42 | 0.46 | 0.47 | 0.40 | 0.37 | 0.45 | 0.42 | 0.37 | 0.33 | 0.98 | 1.03 | 1.29 | 1.38 | 1.77 | 1.87 | 1.76 | 1.40 | 2.13 | 3.09 | 4.52 |
| Receivables turnover | 8.92 | 11.84 | 8.07 | 8.61 | 10.01 | 12.93 | 8.23 | 7.05 | 8.11 | 8.36 | 6.37 | 7.05 | 8.38 | 10.10 | 6.97 | 7.30 | 8.36 | 10.02 | 5.98 | 6.08 |
| Payables turnover | 0.77 | 0.90 | 0.80 | 0.84 | 0.81 | 1.19 | 0.85 | 0.67 | 0.73 | 2.34 | 1.70 | 1.86 | 2.43 | 3.90 | 3.66 | 4.35 | 3.71 | 7.13 | 6.90 | 9.78 |
| Working capital turnover | 3.35 | 3.44 | 3.54 | 3.94 | 4.81 | 3.98 | 3.52 | 3.36 | 5.77 | 5.72 | 5.71 | 5.52 | 4.66 | 4.94 | 4.34 | 3.75 | 3.91 | 5.18 | 4.64 | 5.96 |
The inventory turnover ratio of Advanced Drainage Systems Inc has been fluctuating over the past few quarters, ranging from a low of 0.33 to a high of 4.52. This indicates that the company is able to effectively manage its inventory levels, with a higher ratio suggesting faster inventory turnover. However, the significant variation in this ratio may indicate changes in demand or supply chain management issues.
The receivables turnover ratio has also displayed fluctuations, ranging from a low of 5.98 to a high of 12.93. A higher ratio indicates more efficient collection of receivables, showcasing the company's ability to convert credit sales into cash. The varying values of this ratio suggest changes in the company's credit policies or the creditworthiness of its customers.
The payables turnover ratio has shown a similar pattern of fluctuations, varying from 0.67 to 9.78. A higher ratio implies that the company is paying its suppliers more quickly. The wide range of values for this ratio could be attributed to changing payment terms or relationships with suppliers.
The working capital turnover ratio has also been volatile, with values ranging from 3.35 to 5.96. This ratio reflects how efficiently the company is utilizing its working capital to generate sales. The fluctuations in this ratio could be indicative of changes in the company's operating cycle or capital management strategies.
Overall, the activity ratios of Advanced Drainage Systems Inc highlight the company's ability to manage its inventory, receivables, payables, and working capital efficiently. The fluctuations in these ratios suggest that the company may be experiencing changes in its operations or market conditions that are impacting its working capital management.
Average number of days
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 859.68 | 786.97 | 784.16 | 914.40 | 989.19 | 805.93 | 869.85 | 977.33 | 1,091.42 | 371.39 | 353.53 | 282.52 | 264.68 | 206.42 | 195.03 | 207.69 | 260.11 | 170.99 | 118.18 | 80.80 |
| Days of sales outstanding (DSO) | days | 40.94 | 30.82 | 45.23 | 42.37 | 36.47 | 28.23 | 44.33 | 51.75 | 44.99 | 43.68 | 57.26 | 51.75 | 43.57 | 36.14 | 52.35 | 50.00 | 43.66 | 36.41 | 61.01 | 59.99 |
| Number of days of payables | days | 471.14 | 403.58 | 455.19 | 432.53 | 447.94 | 305.68 | 429.51 | 548.28 | 496.75 | 155.95 | 214.14 | 195.89 | 150.47 | 93.65 | 99.61 | 83.91 | 98.29 | 51.22 | 52.91 | 37.34 |
Days of inventory on hand (DOH) for Advanced Drainage Systems Inc have shown a fluctuating trend over the past few quarters, ranging from as low as 80.80 days to as high as 1,091.42 days. The significant variation in inventory holding periods indicates potential challenges in managing inventory levels efficiently. Generally, lower DOH values suggest that the company is selling inventory quickly, while higher DOH values may indicate excess inventory that could lead to increased storage costs and obsolescence risks.
Days of sales outstanding (DSO) have also varied over the periods, with values ranging from 28.23 days to 61.01 days. The DSO metric reflects the average number of days it takes for the company to collect revenue after making a sale. Lower DSO values indicate efficient collection processes and strong credit management, while higher DSO values may signify potential cash flow issues or difficulties with customer payments.
The number of days of payables for Advanced Drainage Systems Inc has demonstrated fluctuations, with figures spanning from 37.34 days to 548.28 days. This metric represents the average number of days the company takes to pay its suppliers. A higher number of days of payables suggests that the company is taking longer to settle its outstanding bills, potentially indicating favorable cash flow management practices but also raising concerns about the impact on supplier relationships.
Overall, a detailed analysis of activity ratios for Advanced Drainage Systems Inc reveals varying trends in inventory management, accounts receivable collection, and accounts payable practices over the periods, highlighting the importance of monitoring these metrics to assess operational efficiency and financial health.
Long-term
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 3.61 | 3.52 | 3.68 | 3.95 | 4.19 | 4.57 | 4.89 | 4.74 | 4.48 | 4.29 | 4.23 | 4.13 | 3.92 | 3.84 | 3.76 | 3.70 | 3.47 | 3.22 | 3.05 | 3.56 |
| Total asset turnover | 0.88 | 0.90 | 0.91 | 0.97 | 1.06 | 1.04 | 1.01 | 0.94 | 1.05 | 0.99 | 0.92 | 0.87 | 0.82 | 0.81 | 0.76 | 0.73 | 0.71 | 0.70 | 0.65 | 1.32 |
The fixed asset turnover ratio of Advanced Drainage Systems Inc has generally shown a decreasing trend over the past several quarters, indicating that the company is generating fewer revenues for each dollar invested in fixed assets. This could suggest that the efficiency of utilizing its fixed assets to generate sales has declined. However, the ratio remains relatively high, ranging from 3.05 to 4.89, implying that the company is still effectively utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio has fluctuated but generally remained below 1.0 over the same period, indicating that the company is not generating a high level of sales in relation to its total assets. The ratio ranged from 0.65 to 1.32, suggesting that Advanced Drainage Systems Inc may have opportunities to improve its utilization of total assets to generate more revenues.
In summary, while the company shows efficient use of fixed assets to generate sales, there may be room for improvement in terms of generating more sales in relation to its total assets. It is recommended for Advanced Drainage Systems Inc to further analyze and potentially optimize its asset utilization strategies to enhance overall efficiency and profitability.