Aecom Technology Corporation (ACM)

Short-term

Turnover ratios

Based on the provided data, it appears that AECOM has not provided information for the inventory turnover ratio. However, the receivables turnover ratio has shown a fluctuating trend over the past five years, with a slight decrease from 5.66 in 2019 to 5.62 in 2023. This indicates that the company is collecting its receivables at a relatively stable rate.

Similarly, the payables turnover ratio has also exhibited a relatively stable trend, albeit with some minor fluctuations. The ratio increased from 5.33 in 2020 to 6.13 in 2023, indicating that AECOM is paying its suppliers at a slightly faster rate.

Moreover, the working capital turnover ratio has shown significant growth over the past five years, indicating that AECOM is generating higher sales revenue in relation to its working capital. The ratio has increased from 18.80 in 2019 to 45.04 in 2023, reflecting a more efficient use of working capital to generate sales.

Overall, while specific information regarding inventory turnover is not available, the analysis of receivables turnover, payables turnover, and working capital turnover suggests that AECOM has been effectively managing its working capital and relationships with customers and suppliers.

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Average number of days

Based on the activity ratios provided for AECOM, we can assess the efficiency of the company's operations and its management of working capital.

Days of Sales Outstanding (DSO) indicates the average number of days the company takes to collect revenue from its credit sales. AECOM's DSO has fluctuated over the past five years, showing an improvement from 79.99 days in 2020 to 64.96 days in 2023. This indicates that the company has been able to collect its accounts receivable more promptly, which is favorable for its cash flow and liquidity.

Number of Days of Payables represents the average number of days in which the company pays its suppliers. AECOM has maintained a relatively stable payables period, with a slight increase from 55.71 days in 2019 to 59.53 days in 2023. This suggests that the company has been managing its trade credit effectively, potentially benefiting from favorable payment terms with its suppliers.

Unfortunately, the data for Days of Inventory on Hand (DOH) is not provided, which would have indicated how efficiently AECOM manages its inventory. However, the absence of this data makes it challenging to fully evaluate the company's inventory management.

In conclusion, AECOM has shown improvement in its collection of receivables and has managed to maintain a stable payables period. However, without the DOH data, it is difficult to provide a comprehensive analysis of the company's overall activity ratios.

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Long-term

The long-term activity ratios for AECOM indicate the efficiency of the company in utilizing its fixed and total assets to generate sales. The fixed asset turnover ratio has shown an increasing trend over the years, reaching 37.58 in 2023 from 30.70 in 2022, indicating that the company is generating more revenue from its fixed assets. This may suggest improved efficiency in utilizing property, plant, and equipment or other long-term assets.

Similarly, the total asset turnover ratio has also exhibited an increasing trend, reaching 1.28 in 2023 from 1.18 in 2022. This indicates that AECOM has been more effective in generating sales relative to its total asset base. However, it's important to note that there was a significant decrease in the total asset turnover ratio in 2020, possibly reflecting changes in the scale and nature of the company's operations during that period.

In general, the increasing trend in both the fixed asset turnover and total asset turnover ratios signifies improved efficiency in asset utilization, which is a positive indicator of AECOM's operational performance and effectiveness in generating revenue from its long-term assets.