YETI Holdings Inc (YETI)

Short-term

Turnover ratios

YETI Holdings Inc's activity ratios provide insight into the efficiency with which the company manages its assets and liabilities.

1. Inventory Turnover:
- YETI's inventory turnover has fluctuated over the past five years, with a range of 1.87 to 3.30.
- A decreasing trend from 2020 to 2021 followed by a slight increase in 2022 and a further decrease in 2023 may indicate potential issues in managing and selling inventory efficiently.
- The company has shown some variability in the speed at which it turns over its inventory, with an average of around 2.38 over the five-year period.

2. Receivables Turnover:
- YETI’s receivables turnover has also varied, with a range of 11.05 to 20.08 over the past five years.
- The company has been able to collect on its receivables at a relatively high rate, with an average turnover of approximately 15.60 over the period.
- The increasing trend in receivables turnover from 2019 to 2022 may indicate improved efficiency in collecting outstanding payments from customers.

3. Payables Turnover:
- YETI's payables turnover has fluctuated between 3.11 and 5.91 over the past five years, with an average of around 4.35.
- The company has been managing its payables relatively effectively, with some variability in the speed at which it pays its suppliers.
- A decreasing trend in payables turnover from 2022 to 2023 may indicate potential changes in the company's supplier payment policies.

4. Working Capital Turnover:
- YETI’s working capital turnover has ranged from 3.21 to 5.78 over the past five years, with an average of approximately 4.56.
- The company has consistently turned over its working capital at a relatively efficient rate, indicating effective management of its current assets and liabilities.
- A decreasing trend in working capital turnover from 2022 to 2023 may signal changes in the company's working capital management practices.

In summary, YETI Holdings Inc's activity ratios reflect fluctuations and trends in inventory, receivables, payables, and working capital turnover over the past five years. Analysis of these ratios can help assess the company's efficiency in managing its assets and liabilities, identifying areas of strength and potential improvement in its operations.

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Average number of days

YETI Holdings Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH):
- The days of inventory on hand measure how many days, on average, the company holds inventory before selling it.
- YETI's DOH has been fluctuating over the years, with a significant increase in 2021 followed by a decrease in 2022.
- The higher DOH in 2021 suggests that YETI may have faced challenges in managing its inventory efficiently, resulting in longer inventory turnover.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding indicate the average number of days it takes for the company to collect payments from its customers.
- YETI has shown a relatively consistent performance in this metric, with a slight decrease in DSO from 2021 to 2022.
- A lower DSO indicates that YETI is efficient in collecting payments from customers, which can positively impact its cash flow.

3. Number of Days of Payables:
- The number of days of payables measure how long it takes for the company to pay its suppliers.
- YETI's days of payables have been fluctuating, with a notable increase in 2021 followed by a decrease in 2022.
- A longer period of payables suggests that YETI may be taking advantage of supplier credit terms or facing challenges in managing its working capital effectively.

In conclusion, YETI Holdings Inc should focus on optimizing its inventory management to improve its DOH, while maintaining efficient collections processes to ensure a healthy cash flow. Additionally, managing payables effectively can help the company maintain good supplier relationships and working capital management.

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Long-term

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets. YETI Holdings Inc's fixed asset turnover has been relatively stable over the past five years, ranging from 11.06 to 14.15, with a peak in 2020. This suggests that the company has been consistently effective in generating sales from its fixed assets.

Total asset turnover, on the other hand, reflects how efficiently a company uses all of its assets to generate revenue. A higher total asset turnover ratio indicates better asset utilization. YETI Holdings Inc's total asset turnover ratio has fluctuated slightly over the past five years, ranging from 1.28 to 1.48, with a peak in 2022. This indicates that the company has managed to effectively generate revenue relative to its total assets, with fluctuations potentially reflecting changes in asset utilization efficiency.

Overall, YETI Holdings Inc's long-term activity ratios show that the company has maintained relatively efficient utilization of both fixed and total assets in generating sales over the years, which is a positive indicator of operational efficiency.