Ziff Davis Inc (ZD)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables turnover | 4.04 | 4.70 | 4.80 | 4.98 | 4.56 | 6.04 | 5.82 | 5.39 | 4.48 | 5.19 | 5.26 | 5.03 | 3.56 | 6.12 | 6.64 | 6.46 | 5.24 | 6.44 | 7.24 | 6.94 |
| Payables turnover | 1.60 | 1.56 | 1.55 | 1.36 | 1.62 | — | — | — | 1.44 | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 1.80 | 2.13 | 2.15 | 2.08 | 2.13 | 2.51 | 2.62 | 1.87 | 1.76 | — | — | — | — | 30.73 | 15.46 | 3.20 | 25.51 | — | — | 14.09 |
The activity ratios for Ziff Davis Inc provide insights into how efficiently the company is managing its assets and liabilities.
Receivables turnover has been relatively stable over the past eight quarters, with values ranging from 4.04 to 5.10. This indicates that, on average, the company collects its accounts receivable approximately 4 to 5 times a year. A higher turnover ratio suggests more efficient management of credit policies and collections.
Payables turnover, on the other hand, shows a declining trend from Q4 2022 to Q1 2023, with values ranging from 1.36 to 1.62. This suggests that the company is taking longer to pay its suppliers, which could impact its relationships with vendors and potentially lead to cash flow issues if not managed effectively.
Working capital turnover has remained relatively stable, with values ranging from 1.75 to 2.30. This ratio measures how effectively the company is utilizing its working capital to generate sales. A higher turnover ratio indicates efficient use of working capital in generating revenue.
Overall, the analysis of Ziff Davis Inc's activity ratios suggests that the company may need to focus on managing its payables turnover to maintain healthy relationships with suppliers and ensure optimal cash flow management.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 90.37 | 77.61 | 76.08 | 73.30 | 79.96 | 60.44 | 62.71 | 67.77 | 81.50 | 70.36 | 69.38 | 72.58 | 102.56 | 59.62 | 54.94 | 56.47 | 69.68 | 56.69 | 50.40 | 52.59 |
| Number of days of payables | days | 228.03 | 233.82 | 236.05 | 269.22 | 225.53 | — | — | — | 254.22 | — | — | — | — | — | — | — | — | — | — | — |
Based on the activity ratios of Ziff Davis Inc provided, we can analyze the efficiency of the company's operations in managing inventory, collecting receivables, and paying payables.
1. Days of Inventory on Hand (DOH):
Unfortunately, specific data on the days of inventory on hand is not available for any of the quarters presented. However, a lower number of days of inventory on hand is generally favorable as it indicates that the company is efficiently managing its inventory.
2. Days of Sales Outstanding (DSO):
The days of sales outstanding have shown some fluctuations over the quarters. The DSO has ranged from 73.30 days to 90.37 days in Q4 2023. A lower DSO indicates that the company is collecting receivables more quickly, which is a positive sign for cash flow management. Ziff Davis Inc should strive to maintain a lower DSO to improve its cash conversion cycle.
3. Number of Days of Payables:
The number of days of payables has been inconsistent, with values ranging from 225.53 days to 269.22 days in Q1 2023. A higher number of days of payables suggests that the company is taking longer to pay its suppliers, which can be advantageous for cash flow management in the short term. However, it could strain relationships with suppliers if not managed effectively.
In conclusion, Ziff Davis Inc should focus on improving its collection of receivables to reduce the DSO and managing its payables effectively to maintain positive relationships with suppliers. Keeping a watchful eye on these activity ratios can help enhance the company's operational efficiency and overall financial health.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 7.25 | 7.36 | 7.13 | 7.40 | 7.81 | 8.20 | 8.52 | 8.85 | 8.79 | 7.60 | 7.63 | 7.82 | 8.81 | 8.02 | 8.66 | 9.70 | 10.73 | 11.17 | 11.39 | 11.72 |
| Total asset turnover | 0.39 | 0.41 | 0.40 | 0.39 | 0.39 | 0.41 | 0.40 | 0.39 | 0.38 | 0.36 | 0.35 | 0.33 | 0.32 | 0.35 | 0.37 | 0.39 | 0.39 | 0.45 | 0.45 | 0.46 |
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate sales. Ziff Davis Inc has maintained a relatively stable fixed asset turnover ratio in the range of 6.66 to 8.31 over the past eight quarters. The company's fixed asset turnover has peaked at 8.31 in Q1 2022 and hit a low of 6.66 in Q3 2022, indicating some fluctuation in asset utilization efficiency.
On the other hand, the total asset turnover ratio reflects the company's ability to generate sales relative to the size of its total asset base. Ziff Davis Inc's total asset turnover ratio has ranged from 0.33 to 0.41 during the same period. The company has shown a consistent performance in this ratio, hovering around 0.39 for the most part.
Overall, Ziff Davis Inc appears to be effectively utilizing its fixed assets to generate sales, as evidenced by the relatively high fixed asset turnover ratio. However, the total asset turnover ratio suggests that the company may have room for improvement in maximizing sales relative to its total asset base. Investors and stakeholders may want to monitor these ratios over time to assess the company's long-term operational efficiency and asset utilization strategies.