Atlas Energy Solutions Inc. (AESI)

Short-term

Turnover ratios

Atlas Energy Solutions Inc. has shown a significant improvement in its Inventory turnover ratio over the last three quarters, increasing from 28.49 to 49.04. This indicates that the company is managing its inventory efficiently, generating sales at a rapid rate relative to its level of inventory.

Similarly, the Receivables turnover ratio has also shown an upward trend, increasing from 3.91 to 6.10 over the same period. This improvement suggests that the company is collecting its accounts receivable faster, which is a positive sign of effective credit management.

The Payables turnover ratio has also increased steadily from 5.16 to 7.13, indicating that the company is taking longer to pay its suppliers. While this may suggest a potential strain on supplier relationships, it can also indicate that the company is effectively managing its cash flow by delaying payments.

The Working capital turnover ratio has seen a significant increase from 6.12 to 21.84, indicating that the company is generating sales at a much higher rate relative to its working capital. This suggests that the company is utilizing its working capital efficiently to generate revenue and support its operations.

Overall, Atlas Energy Solutions Inc. has shown improvements in its activity ratios, which suggest efficient management of inventory, accounts receivable, payables, and working capital to drive sales and support business operations effectively.

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Average number of days

Given the activity ratios provided for Atlas Energy Solutions Inc., we can analyze the efficiency of the company's operations:

1. Days of Inventory on Hand (DOH):
- The company held inventory for an average of 12.81 days as of June 30, 2024, which decreased to 7.44 days by December 31, 2024. This indicates a positive trend of reducing the time taken to convert inventory into sales.

2. Days of Sales Outstanding (DSO):
- The average number of days it took for the company to collect payments from its customers was 93.39 days on June 30, 2024, which improved to 59.84 days by December 31, 2024. A decreasing trend in DSO suggests more efficient accounts receivable management.

3. Number of Days of Payables:
- Atlas Energy Solutions Inc. took an average of 70.80 days to pay its suppliers as of June 30, 2024, which decreased to 51.20 days by December 31, 2024. This indicates that the company reduced the time it takes to settle its payables.

Overall, the decreasing trends in Days of Inventory on Hand, Days of Sales Outstanding, and Number of Days of Payables demonstrate improvements in the company's efficiency in managing inventory, collecting receivables, and paying obligations. These trends suggest that Atlas Energy Solutions Inc. is becoming more effective in the management of its working capital and operational activities.

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Long-term

The long-term activity ratios of Atlas Energy Solutions Inc. indicate the company's efficiency in utilizing its fixed assets and total assets to generate revenue.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio has shown an improvement over the analyzed periods, increasing from 0.55 on June 30, 2024, to 0.68 on December 31, 2024. This signifies that the company was able to generate more revenue for each dollar invested in fixed assets, indicating improved efficiency in asset utilization.

2. Total Asset Turnover:
- The total asset turnover ratio also displays a positive trend, rising from 0.39 on June 30, 2024, to 0.51 on December 31, 2024. This suggests that Atlas Energy Solutions Inc. was able to generate more revenue relative to its total assets during the period under review, highlighting enhanced efficiency in overall asset management.

Overall, the increasing trends in both fixed asset turnover and total asset turnover ratios reflect the company's ability to effectively utilize its assets to drive revenue growth and generate returns. This could imply improved operational efficiency and better utilization of resources within the organization.