Aecom Technology Corporation (ACM)

Short-term

Turnover ratios

The activity ratios of Aecom Technology Corporation provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.

- Inventory turnover has shown an increasing trend over the years, reaching 14.67 in 2022, indicating that the company is efficiently managing its inventory by quickly converting it into sales.

- Receivables turnover has fluctuated slightly but remains relatively stable around 4 to 4.5, suggesting that the company collects its receivables in a timely manner, although there may be room for improvement in managing outstanding customer payments.

- Payables turnover has been consistently above 5, indicating that the company is effectively managing its payments to suppliers, with a slight decrease from 6.13 in 2023 to 5.87 in 2024.

- Working capital turnover has shown a significant increase over the years, reaching 20.08 in 2024, demonstrating that the company efficiently utilizes its working capital to generate sales revenue.

Overall, Aecom Technology Corporation appears to be effectively managing its activity ratios, with improved efficiency in inventory and working capital turnover, and stable performance in receivables and payables turnover over the years.

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Average number of days

The activity ratios for Aecom Technology Corporation indicate the efficiency of the company's operations in managing inventory, collecting receivables, and paying suppliers.

1. Days of inventory on hand (DOH): The trend shows a decrease in the number of days inventory is held from 40.32 days in 2020 to 24.88 days in 2022. This signifies that Aecom has been managing its inventory more efficiently, possibly through better inventory control and management practices.

2. Days of sales outstanding (DSO): The DSO represents the average number of days it takes for Aecom to collect its accounts receivable. The trend shows a slight improvement from 94.44 days in 2020 to 82.70 days in 2024. A decreasing DSO implies that the company is collecting payments from customers more quickly, which can improve cash flow and reduce the risk of bad debts.

3. Number of days of payables: This ratio indicates the average number of days a company takes to pay its suppliers. Aecom has managed to reduce its payables days from 68.69 days in 2020 to 62.21 days in 2024. A lower number of days of payables suggests that the company is making payments to its suppliers more promptly, which can help maintain good relationships with suppliers and potentially secure better payment terms.

Overall, the improving trends in inventory management, accounts receivable collection, and payables days reflect Aecom's efforts to enhance operational efficiency and optimize working capital management. Aecom appears to be effectively managing its assets and liabilities to support its business operations.

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Long-term

The long-term activity ratios of Aecom Technology Corporation show a positive trend over the past five years. The fixed asset turnover has been increasing steadily, from 30.70 in 2022 to 45.44 in 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets, reflecting improved efficiency in utilizing its property, plant, and equipment.

Similarly, the total asset turnover has also been increasing year over year, from 1.02 in 2020 to 1.34 in 2024. This suggests that Aecom is generating more revenue for each dollar of total assets, indicating a higher level of efficiency in utilizing its total asset base to generate sales.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that Aecom Technology Corporation has been effectively managing its long-term assets to generate revenue, which is a positive sign of operational efficiency and productivity.