Aecom Technology Corporation (ACM)
Activity ratios
Short-term
Turnover ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | 136.47 | 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 |
| Receivables turnover | 4.41 | 4.71 | 4.68 | 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 |
| Payables turnover | 5.87 | 6.07 | 6.22 | 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 |
| Working capital turnover | 20.08 | 19.10 | 42.44 | 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 |
Aecom Technology Corporation's activity ratios provide insights into the efficiency of its operations and how effectively it manages its assets and liabilities.
1. Inventory turnover:
- Aecom's inventory turnover has fluctuated over the periods provided, ranging from 5.92 to 170.84. The latest recorded figure for March 31, 2024, is 136.47, indicating that the company turned over its inventory approximately 136 times during the year. This suggests efficient inventory management.
2. Receivables turnover:
- The receivables turnover ratio has been relatively stable, with values ranging from 3.82 to 4.79. A higher turnover ratio indicates that Aecom collects its receivables more frequently, which is positive for cash flow management.
3. Payables turnover:
- The payables turnover ratio has also remained fairly consistent, varying between 5.31 and 6.60. This indicates that Aecom pays its suppliers within a reasonable timeframe. A higher ratio suggests a quicker payment cycle.
4. Working capital turnover:
- Aecom's working capital turnover has shown variability, with values ranging from 8.57 to 53.29. A higher turnover ratio signifies the efficient use of working capital to generate sales revenue, indicating effective resource utilization.
Overall, Aecom Technology Corporation demonstrates efficiency in managing its inventory, receivables, payables, and working capital, as indicated by its activity ratios. Continued monitoring of these ratios can help assess the company's operational performance and financial health.
Average number of days
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 2.67 | 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 |
| Days of sales outstanding (DSO) | days | 82.70 | 77.56 | 77.95 | 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 |
| Number of days of payables | days | 62.21 | 60.12 | 58.65 | 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 |
Days of Inventory on Hand (DOH) for Aecom Technology Corporation show a fluctuating trend over the periods provided, ranging from as low as 2.14 days to as high as 61.67 days. Generally, a lower number of days of inventory on hand indicates efficient inventory management, whereas a higher number suggests slower turnover. It is important for the company to closely monitor and control its inventory levels to optimize working capital and minimize carrying costs.
Days of Sales Outstanding (DSO) have also varied over the periods examined, showing a range from 76.26 days to 95.56 days. A higher DSO indicates that the company is taking longer to collect revenue from its customers, which could potentially strain cash flow. Aecom should aim to keep this metric low by implementing effective credit control measures and managing its accounts receivable efficiently.
The Number of Days of Payables for Aecom has shown some inconsistency, ranging from 55.31 days to 68.69 days. Aecom's payment terms with its suppliers play a significant role in shaping this metric. A longer number of days of payables can indicate that the company is effectively using trade credit to manage its cash flow, but it is essential to strike the right balance to maintain positive relationships with suppliers.
Overall, Aecom Technology Corporation should focus on optimizing its activity ratios to improve working capital management and enhance overall financial performance.
Long-term
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 45.44 | 44.38 | 41.22 | 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 |
| Total asset turnover | 1.34 | 1.31 | 1.34 | 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 |
Aecom Technology Corporation's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, show the company's efficiency in generating revenue from its assets over time.
1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is utilizing its fixed assets to generate sales. A higher ratio indicates better utilization of fixed assets.
- Aecom's fixed asset turnover ratio has generally been increasing over the past few years, reaching a high of 45.44 in the latest period.
- This trend suggests that Aecom has been able to generate more revenue for every dollar invested in fixed assets, showcasing improved efficiency in asset utilization.
2. Total Asset Turnover:
- The total asset turnover ratio assesses the company's ability to generate sales relative to its total assets. A higher ratio implies better asset utilization and efficiency in generating revenue.
- Aecom's total asset turnover ratio has also shown an increasing trend, with fluctuations in between, over the periods analyzed.
- The ratio ranged from 0.89 in December 2019 to 1.34 in September 2024, indicating that the company has been increasingly efficient in utilizing its total assets to generate sales.
Overall, the increasing trends in both the fixed asset turnover and total asset turnover ratios suggest that Aecom Technology Corporation has been improving its asset utilization efficiency over the analyzed periods. This indicates positive operational performance and effective management of the company's assets to generate revenue.