Wabash National Corporation (WNC)

Short-term

Turnover ratios

Wabash National Corporation's activity ratios provide insights into how efficiently the company manages its assets and liabilities to generate sales.

1. Inventory Turnover:
- The inventory turnover ratio has fluctuated over the past five years, with a decline from 2020 to 2024. In 2020, it stood at 8.07, indicating that inventory was turned over approximately 8 times during the year. By the end of 2024, this ratio decreased to 6.50, implying a slower rate of inventory turnover. A higher turnover ratio is generally preferred as it indicates efficient utilization of inventory.

2. Receivables Turnover:
- The data provided does not include information on receivables turnover for any of the years. This ratio measures how quickly the company collects payments from its customers. The absence of data suggests that we do not have information on the efficiency of the company in collecting receivables.

3. Payables Turnover:
- Similar to receivables turnover, data on payables turnover is not available. The payables turnover ratio would have provided insights into how quickly the company pays its suppliers and creditors.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how effectively the company leverages its working capital to generate revenue. From 2020 to 2022, the ratio showed a significant increase from 4.78 to 10.21, signifying a higher level of sales generated per unit of working capital. However, the ratio decreased to 6.80 by the end of 2024, indicating a slight decline in efficiency in utilizing working capital to drive sales.

In conclusion, while the inventory turnover and working capital turnover ratios provide some insights into operational efficiency, the absence of data for receivables turnover and payables turnover limits a comprehensive analysis of Wabash National Corporation's overall activity and liquidity management.

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Average number of days

Based on the provided data for Wabash National Corporation, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The company's inventory turnover improved from 45.21 days in 2020 to 40.84 days in 2022, indicating a more efficient management of inventory.
- However, in 2024, the DOH increased to 56.18 days, suggesting a slight decrease in inventory turnover efficiency compared to the previous year.

2. Days of Sales Outstanding (DSO):
- The data provided shows "— days" for all years, which suggests that information on accounts receivable turnover is not available. This makes it challenging to evaluate the efficiency of the company in collecting its outstanding sales.

3. Number of Days of Payables:
- Similar to DSO, the data for the number of days of payables is also indicated as "— days" for all years. This means that details regarding the company's payment cycle and accounts payable turnover are not available for analysis.

In summary, based on the available data, we see improvements in inventory turnover for Wabash National Corporation from 2020 to 2022, but a slight decline in efficiency by 2024. Unfortunately, the absence of information on DSO and payables turnover limits our ability to provide a comprehensive analysis of the company's overall activity ratios.

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Long-term

The Fixed Asset Turnover ratio for Wabash National Corporation has been steadily increasing over the years, from 7.07 in 2020 to 9.23 in 2022. This indicates that the company is generating more revenue relative to its investment in fixed assets, which is a positive sign of efficiency in utilizing its long-term assets.

On the other hand, the Total Asset Turnover ratio shows a more fluctuating trend, increasing from 1.28 in 2020 to 2.08 in 2022, before decreasing to 1.38 in 2024. This ratio reflects how efficiently the company is generating sales from its total assets. The peak in 2022 suggests that Wabash National was able to generate a higher level of sales for each dollar of assets held during that year.

Overall, the increasing trend in Fixed Asset Turnover and the fluctuating trend in Total Asset Turnover ratios indicate that Wabash National Corporation has been improving its operational efficiency in utilizing both its fixed and total assets to generate revenue over the years. It is important for the company to closely monitor these ratios to ensure continued efficiency in its asset utilization strategies.