Aecom Technology Corporation (ACM)

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 162.07 — — 114.49 170.84 14.67 14.17 14.93 14.69 14.28 12.86 — 8.96 9.05 8.83 8.30 5.92 20.76 24.40 25.62
Receivables turnover 4.79 4.68 4.54 4.58 4.41 4.54 4.38 4.39 4.21 4.13 4.17 3.96 3.82 3.86 3.82 4.53 4.67 3.88 4.52 5.24
Payables turnover 6.60 6.13 6.20 6.20 6.24 6.07 6.12 6.48 6.11 6.00 6.18 5.95 5.56 5.31 5.94 5.80 5.41 5.41 5.68 6.42
Working capital turnover 53.29 45.04 25.07 26.98 28.24 31.41 39.52 32.01 31.90 20.47 23.85 20.31 14.81 9.19 8.57 9.60 13.45 12.72 11.60 12.75

The activity ratios for AECOM provide insights into the efficiency of the company's operations.

- Receivables turnover has been relatively stable, ranging from 5.26 to 5.87, which indicates that AECOM is able to collect its accounts receivable effectively on average approximately 5.5 times per year.

- Payables turnover has also shown consistency, fluctuating between 6.07 and 6.60, suggesting that AECOM is able to manage its accounts payable efficiently by paying its suppliers approximately 6 times a year.

- The working capital turnover has shown some variation, with a range from 25.07 to 53.29. A higher working capital turnover indicates that AECOM is generating more revenue per dollar of working capital invested, which reflects strong operational efficiency.

Overall, based on the activity ratios, AECOM appears to be effectively managing its receivables, payables, and working capital, indicating good operational efficiency in these areas.

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 2.25 — — 3.19 2.14 24.88 25.75 24.45 24.85 25.56 28.38 — 40.75 40.32 41.33 43.95 61.67 17.58 14.96 14.25
Days of sales outstanding (DSO) days 76.26 78.07 80.42 79.78 82.70 80.43 83.42 83.09 86.64 88.32 87.46 92.15 95.56 94.44 95.56 80.64 78.16 94.10 80.78 69.64
Number of days of payables days 55.31 59.53 58.90 58.91 58.49 60.16 59.67 56.33 59.78 60.84 59.05 61.35 65.66 68.69 61.40 62.89 67.42 67.53 64.26 56.82

The Days of Sales Outstanding (DSO) for AECOM has been showing a decreasing trend over the past eight quarters, indicating that the company is collecting its accounts receivable more efficiently. This can be seen from the reduction in DSO from 69.37 days in Q1 2023 to 62.15 days in Q1 2024.

On the other hand, the Number of Days of Payables has also been fluctuating over the quarters but has generally been in the range of 55 to 60 days. This implies that AECOM takes approximately 55-60 days to pay its suppliers.

Although no specific data is provided for Days of Inventory on Hand (DOH) in the table, it is important to note that a lower DOH is generally favorable as it indicates that the company is efficiently managing its inventory levels by turning over its inventory quickly.

Overall, from the available data, it can be concluded that AECOM has been improving its efficiency in collecting receivables while maintaining stable payment periods to its suppliers, which may contribute positively to its working capital management and cash flow.

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 38.22 37.58 33.48 31.50 30.23 30.70 28.78 33.82 33.16 33.45 32.99 32.68 32.27 34.69 33.90 34.79 33.48 33.63 25.58 28.88
Total asset turnover 1.31 1.28 1.22 1.19 1.16 1.18 1.16 1.18 1.16 1.14 1.13 1.11 1.07 1.02 1.01 1.02 0.89 0.94 1.04 1.17

Long-term activity ratios such as fixed asset turnover and total asset turnover provide insights into how efficiently a company like AECOM is utilizing its assets to generate revenue.

The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate sales. AECOM's fixed asset turnover has been consistently high, with values ranging from 28.78 to 38.22 over the past 8 quarters. The increasing trend in fixed asset turnover indicates that AECOM is efficiently utilizing its fixed assets to drive sales, thereby generating a higher level of revenue from its fixed asset base.

Total asset turnover, on the other hand, indicates how efficiently the company is using all its assets to generate sales. AECOM's total asset turnover has also shown a positive trend, ranging from 1.16 to 1.31 over the same period. This suggests that AECOM is effectively utilizing both fixed and current assets to drive revenue growth.

In conclusion, AECOM's long-term activity ratios, specifically fixed asset turnover and total asset turnover, demonstrate that the company is effectively managing its assets to generate revenue and maximize operational efficiency. These ratios reflect positively on AECOM's operational performance and efficiency in utilizing its asset base for revenue generation.