Ziff Davis Inc (ZD)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | 40.65 | — |
| Receivables turnover | 2.13 | 4.04 | 4.56 | 4.48 | 3.56 |
| Payables turnover | 1.22 | 1.51 | 1.62 | 1.44 | — |
| Working capital turnover | 3.78 | 1.80 | 2.13 | 1.76 | — |
Analysis of Ziff Davis Inc Activity Ratios:
1. Inventory Turnover:
- The inventory turnover ratio for Ziff Davis Inc was not available for the years 2020, 2022, 2023, and 2024.
- However, the ratio for the year ending December 31, 2021, was 40.65, indicating that the company efficiently sold and replaced its inventory 40.65 times during that year.
- A high inventory turnover ratio suggests strong sales performance and effective inventory management.
2. Receivables Turnover:
- Ziff Davis Inc's receivables turnover ratio showed a fluctuating trend over the years.
- The ratio improved from 3.56 in 2020 to 4.48 in 2021, indicating that the company collected its receivables more quickly in 2021.
- However, the ratio decreased in the following years, reaching 2.13 by the end of 2024, which may suggest a potential issue with collecting payments efficiently.
3. Payables Turnover:
- Payables turnover ratio for Ziff Davis Inc was not available for the year 2020.
- The ratio improved from 1.44 in 2021 to 1.22 in 2024, indicating that the company took longer to pay its suppliers in 2024 compared to 2021.
- A lower payables turnover ratio may indicate a need for better cash flow management or potential strain on supplier relationships.
4. Working Capital Turnover:
- The working capital turnover ratio for Ziff Davis Inc was not available for the year 2020.
- The ratio increased from 1.76 in 2021 to 3.78 in 2024, suggesting that the company generated more revenue per unit of working capital invested during these years.
- A higher working capital turnover ratio indicates efficient utilization of working capital to generate sales.
Overall, while Ziff Davis Inc showed strengths in inventory turnover and working capital turnover, there are areas of concern in receivables turnover and payables turnover that may require further analysis and attention to ensure efficient management of working capital and cash flow.
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 | — | — | — | 8.98 | — |
| Days of sales outstanding (DSO) | days | 171.37 | 90.37 | 79.96 | 81.50 | 102.56 |
| Number of days of payables | days | 299.46 | 242.33 | 225.53 | 254.22 | — |
Activity ratios help evaluate how efficiently a company manages its assets and liabilities to generate revenue.
1. Days of Inventory on Hand (DOH):
- In 2021, Ziff Davis Inc had 8.98 days of inventory on hand, indicating a relatively efficient inventory management.
- There is no data available for the other years, so it is unclear how the company's inventory management performance changed over time.
2. Days of Sales Outstanding (DSO):
- Ziff Davis Inc's days of sales outstanding decreased from 102.56 days in 2020 to 81.50 days in 2021, suggesting that the company collected receivables more quickly.
- However, the DSO increased in 2024 to 171.37 days, possibly indicating delays in collecting receivables, which may impact cash flow.
3. Number of Days of Payables:
- Ziff Davis Inc had no payable days data available for 2020.
- The number of days of payables increased from 254.22 days in 2021 to 299.46 days in 2024, suggesting that the company took longer to pay its suppliers.
- This could indicate potential cash flow challenges or changes in the company's payment policies over the years.
Overall, Ziff Davis Inc's activity ratios show some fluctuations in inventory management, receivables collection, and payment practices, which could impact the company's operational efficiency and cash flow management.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 7.13 | 7.25 | 7.81 | 8.79 | 8.81 |
| Total asset turnover | 0.38 | 0.39 | 0.39 | 0.38 | 0.32 |
The fixed asset turnover ratio of Ziff Davis Inc has exhibited a slight decline over the years, from 8.81 in 2020 to 7.13 in 2024. This indicates that the company is generating less revenue for each dollar invested in fixed assets.
On the other hand, the total asset turnover ratio has shown a more stable trend, hovering around 0.38 from 2021 to 2024. This suggests that the company is able to generate consistent revenue in relation to its total assets.
Overall, the long-term activity ratios of Ziff Davis Inc suggest that there may be inefficiencies in utilizing fixed assets efficiently, which could impact the company's profitability in the long run.