YETI Holdings Inc (YETI)

Short-term

Turnover ratios

YETI Holdings Inc's activity ratios provide insights into how efficiently the company manages its assets and operations.

1. Inventory turnover: YETI's inventory turnover has been fluctuating over the periods, ranging from 1.40 to 3.32. A higher inventory turnover indicates that the company is selling goods quickly, which is generally positive. The trend shows some variability, with the ratio decreasing in recent periods.

2. Receivables turnover: YETI's receivables turnover has been variable, with significant fluctuations and missing data points. The ratios ranged from 12.06 to 20.08, indicating how many times the company collects its accounts receivable during a period. A higher receivables turnover suggests that the company efficiently collects payments from customers.

3. Payables turnover: YETI's payables turnover has also varied, ranging from 3.11 to 10.51. This ratio reflects how quickly the company pays its suppliers. A higher payables turnover indicates that the company efficiently manages its payments to suppliers. The trend shows some fluctuations but remains relatively stable.

4. Working capital turnover: YETI's working capital turnover ratios have shown fluctuations, ranging from 3.01 to 6.56, which measures how efficiently the company utilizes its working capital to generate revenue. A higher turnover ratio implies better utilization of working capital. The trend indicates some variability but generally shows efficient use of working capital.

Overall, YETI Holdings Inc's activity ratios suggest mixed efficiency in managing its assets and operations, with some ratios showing stability while others exhibit variability. Monitoring these ratios over time can help in assessing the company's operational performance and efficiency.

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Average number of days

YETI Holdings Inc's activity ratios provide insights into the efficiency and effectiveness of its operations.

1. Days of Inventory on Hand (DOH): The DOH ratio measures how many days, on average, YETI holds its inventory before selling it. The trend shows a fluctuation in inventory management during the past few quarters. The company has improved its inventory management as the DOH has decreased from the high of 261.61 days in Jun 2022 to 172.01 days in Dec 2023. However, the DOH remains quite high and indicates that YETI might be carrying excess inventory, which could tie up capital or lead to potential obsolescence.

2. Days of Sales Outstanding (DSO): The DSO ratio reflects how long it takes YETI to collect cash from its credit sales. The data available is sporadic, with missing values in some quarters. An increasing trend in DSO might indicate that YETI is having difficulty collecting payments from customers promptly. Further information is necessary to provide a concrete analysis of this ratio.

3. Number of Days of Payables: This ratio illustrates the average number of days YETI takes to pay its suppliers. A consistent downward trend in the number of days of payables suggests that the company is paying its suppliers more quickly. This can be an advantage as it may help maintain good relationships with suppliers and potentially negotiate better terms in the future. However, a very low number of days of payables can also signal cash flow constraints or inefficiencies in managing supplier relationships.

Overall, while YETI has shown improvement in its inventory management, there are areas of concern such as collection efficiency and the management of payables that require further analysis and monitoring to ensure sustainable growth and profitability.

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Long-term

YETI Holdings Inc's fixed asset turnover ratio has been relatively stable over the past few quarters, ranging between 11.65 and 14.15 times. This indicates that the company is efficient in generating sales revenue from its fixed assets. The higher the fixed asset turnover ratio, the better, as it signifies that the company is utilizing its fixed assets effectively to generate sales.

On the other hand, the total asset turnover ratio has shown more variability, ranging from 1.28 to 1.62 times. This ratio measures the efficiency of the company in generating sales from all its assets, including both fixed and current assets. A higher total asset turnover ratio is generally favorable, indicating that the company is efficiently using its assets to generate sales revenue.

Overall, YETI Holdings Inc's long-term activity ratios suggest that the company is effectively utilizing its assets to generate sales revenue, both in terms of fixed assets and total assets. The stability of the fixed asset turnover and the variability in the total asset turnover ratios may indicate different strategic decisions related to asset management and sales generation.