Willscot Mobile Mini Holdings Corp A (WSC)

Short-term

Turnover ratios

The activity ratios of Willscot Mobile Mini Holdings Corp A, encompassing inventory turnover, receivables turnover, payables turnover, and working capital turnover, reveal several trends over the period from December 31, 2020, to December 31, 2024.

Inventory Turnover: The inventory turnover ratio exhibits a steady decline, decreasing from 32.68 in 2020 to 21.75 in 2023 before a marginal increase to 23.04 in 2024. This trend indicates a gradual reduction in the efficiency of inventory management, suggesting that inventory is being sold and replenished less frequently over time, which could imply accumulating inventory or slower sales cycles.

Receivables Turnover: The receivables turnover ratio shows a gradual upward trend, rising from 4.13 in 2020 to 5.57 in 2024. This increase signifies an improvement in the company's ability to collect accounts receivable more quickly, reflecting more efficient management of credit sales and possibly a more disciplined credit policy.

Payables Turnover: The payables turnover ratio increases from 6.62 in 2020 to a peak of 11.97 in 2023, then slightly decreases to 11.32 in 2024. The rising trend indicates that the company is paying its suppliers more quickly over time, which could be due to better cash flow position or strategic changes in payment policies. The slight decline in 2024 suggests a potential slowdown in this trend.

Working Capital Turnover: The working capital turnover ratio is only available for 2023, with a notably high value of 334.20. This ratio reflects how effectively the company utilizes its working capital to generate sales. The absence of data for other years limits a comprehensive trend analysis; however, the high ratio in 2023 suggests an efficient deployment of working capital during that period.

In summary, Willscot Mobile Mini Holdings Corp A demonstrates a decreasing effectiveness in inventory management but shows improvements in receivables collection efficiency. The payables turnover indicates a trend towards faster payments to suppliers, with a peak observed in 2023. The limited data for working capital turnover highlights a period of highly efficient working capital utilization in 2023. Overall, these ratios suggest ongoing shifts in operational efficiency and cash management strategies over the analyzed period.

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Average number of days

The activity ratios for Willscot Mobile Mini Holdings Corp A, as measured by Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Days of Payables (DPO), exhibit distinct trends over the period from December 31, 2020, to December 31, 2024.

Starting with inventory management, the DOH indicates a gradual increase from 11.17 days in 2020 to a peak of 16.78 days in 2023, followed by a slight decrease to 15.84 days in 2024. This trend suggests a modest elongation in the period the company holds inventory before sale, potentially reflecting strategic operational adjustments or changes in inventory turnover efficiency.

In terms of receivables management, the DSO shows a significant reduction from 88.32 days in 2020 to 65.57 days in 2024. The decrease indicates an improvement in collection efficiency, with the company collecting receivables more quickly over time, thereby enhancing cash flow and reducing the working capital tied up in receivables.

Regarding payables, the number of days the company takes to settle its obligations decreased from 55.15 days in 2020 to 30.49 days in 2023, then slightly increased to 32.23 days in 2024. This pattern suggests that the company has generally been paying its suppliers in a shorter timeframe, possibly reflecting a strategic effort to tighten payment terms or changes in supplier relationships.

Overall, the activity ratios depict an environment of improving receivables collection and shorter payment cycles, alongside a modest lengthening of inventory holding periods. These shifts could indicate a focus on liquidity management and operational efficiency, balanced by the increasing inventory holding period which might be associated with inventory replenishment cycles or changes in product mix.

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Long-term

The long-term activity ratios for Willscot Mobile Mini Holdings Corp A, specifically the Fixed Asset Turnover and Total Asset Turnover ratios, reveal notable trends over the period from December 31, 2020, to December 31, 2024.

The Fixed Asset Turnover ratio experienced a significant decline from 2.55 in 2020 to 0.62 in 2021, indicating a substantial decrease in the efficiency with which the company utilized its fixed assets to generate sales. This decline persisted into 2022, although the ratio modestly improved to 0.70, suggesting a partial recovery in fixed asset efficiency. Data for 2023 and 2024 is unavailable or not reported, precluding further trend analysis in this period.

Conversely, the Total Asset Turnover ratio demonstrated a consistent upward trend over the same period, increasing gradually from 0.25 in 2020 to 0.33 in 2021, then to 0.37 in 2022, and further to 0.39 in 2023, reaching 0.40 in 2024. This steady rise indicates an improvement in the company's overall efficiency in utilizing its total assets to generate sales, despite the fluctuations observed in fixed asset utilization.

Overall, while the Fixed Asset Turnover ratio shows a significant decline followed by minor recovery, the Total Asset Turnover ratio maintains a consistent upward trajectory. This suggests that the company has been progressively improving its efficiency in leveraging its total assets, potentially through better management of current assets or an optimized asset base outside fixed assets. The disparity between the ratios signifies that other assets beyond fixed assets have contributed more effectively to sales generation in recent periods.