YETI Holdings Inc (YETI)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.47 | 2.12 | 2.24 | 1.87 | 3.30 |
| Receivables turnover | 15.22 | 17.32 | 20.08 | 12.88 | 16.69 |
| Payables turnover | 4.84 | 3.76 | 5.91 | 3.11 | 3.74 |
| Working capital turnover | 4.09 | 3.21 | 5.15 | 3.85 | 5.78 |
YETI Holdings Inc's inventory turnover ratio decreased from 3.30 in 2020 to 1.87 in 2021, indicating a decrease in the efficiency of turning over its inventory. However, there was a slight improvement in the following years, with the ratio reaching 2.47 in 2024, albeit still lower than the initial value.
The receivables turnover ratio shows a decreasing trend from 16.69 in 2020 to 15.22 in 2024. This may suggest that the company took longer to collect payments from its customers over the years.
The payables turnover ratio for YETI Holdings Inc varied, with a significant increase from 3.11 in 2021 to 5.91 in 2022, before decreasing to 4.84 in 2024. This indicates changes in the company's payment policies with its suppliers.
The working capital turnover ratio decreased over the years from 5.78 in 2020 to 4.09 in 2024, reflecting a decline in the efficiency of utilizing its working capital to generate sales revenue.
In summary, based on the activity ratios analysis, YETI Holdings Inc experienced fluctuations in its inventory turnover, receivables turnover, payables turnover, and working capital turnover ratios over the years, signaling changes in its operational efficiency and management of inventory, receivables, payables, and working capital.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 147.63 | 172.01 | 162.97 | 195.65 | 110.47 |
| Days of sales outstanding (DSO) | days | 23.97 | 21.08 | 18.18 | 28.33 | 21.87 |
| Number of days of payables | days | 75.47 | 97.12 | 61.79 | 117.39 | 97.47 |
YETI Holdings Inc's activity ratios indicate its efficiency in managing inventory, receivables, and payables.
1. Days of Inventory on Hand (DOH):
- YETI's DOH has been fluctuating over the years, ranging from 110.47 days in December 2020 to 195.65 days in December 2021, and then decreasing to 147.63 days by December 2024. This suggests that the company is improving its inventory management efficiency and reducing the number of days it takes to sell its inventory.
2. Days of Sales Outstanding (DSO):
- YETI's DSO, reflecting how quickly the company collects its receivables, increased from 21.87 days in December 2020 to 28.33 days in December 2021, before improving to 23.97 days by December 2024. A lower DSO indicates faster collection of receivables, which is positive for liquidity and working capital management.
3. Number of Days of Payables:
- YETI's number of days of payables shows the average number of days the company takes to pay its suppliers. The trend in this ratio shows variability, with a decrease from 97.47 days in December 2020 to 61.79 days in December 2022, before increasing to 75.47 days by December 2024. This suggests changes in the company's payment terms with suppliers.
Overall, YETI's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, and payables over the years, indicating a continuous effort to enhance operational effectiveness and optimize working capital management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 15.17 | 13.33 | 13.63 | 12.87 | 14.15 |
| Total asset turnover | 1.42 | 1.28 | 1.48 | 1.29 | 1.48 |
YETI Holdings Inc's fixed asset turnover ratio has shown a fluctuating trend over the years, with values of 14.15 in 2020, 12.87 in 2021, 13.63 in 2022, 13.33 in 2023, and 15.17 in 2024. This indicates that the company generated $14.15, $12.87, $13.63, $13.33, and $15.17 in sales for each dollar invested in fixed assets during those respective years.
On the other hand, the total asset turnover ratio for YETI Holdings Inc has also displayed variability, with figures of 1.48 in 2020, 1.29 in 2021, 1.48 in 2022, 1.28 in 2023, and 1.42 in 2024. This suggests that the company generated $1.48, $1.29, $1.48, $1.28, and $1.42 in sales for every dollar of total assets during those respective years.
Overall, the fixed asset turnover indicates the efficiency of YETI Holdings Inc in utilizing its fixed assets to generate sales, while the total asset turnover provides insights into the company's efficiency in generating sales from its total assets. The fluctuations in these ratios over the years may be indicative of changes in the company's asset utilization efficiency and operational performance.