Antero Midstream Partners LP (AM)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | 10.49 | 10.84 | 9.81 | 7.51 |
| Payables turnover | — | 13.85 | 12.58 | 105.32 | 176.29 |
| Working capital turnover | — | — | — | — | — |
The receivables turnover ratio for Antero Midstream Corp has demonstrated a consistent improvement over the past five years, indicating that the company is collecting its receivables more efficiently. This suggests that the company is managing its credit policies effectively and converting its credit sales into cash at a quicker pace.
On the other hand, the payables turnover ratio has shown fluctuations during the same period. A higher payables turnover ratio signifies that the company is paying its suppliers more frequently, which may imply favorable terms with suppliers or efficient working capital management. However, the significant variations in the ratio over the years may indicate changes in the company's payment practices or relationships with suppliers.
The absence of data for the inventory turnover and working capital turnover ratios limits a comprehensive analysis of the company's efficiency in managing its inventory and working capital. These ratios are important indicators of operational efficiency and liquidity management, so their inclusion in future financial reports would provide a more holistic view of Antero Midstream Corp's overall operational performance.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | 34.78 | 33.68 | 37.21 | 48.63 |
| Number of days of payables | days | — | 26.35 | 29.03 | 3.47 | 2.07 |
Based on the activity ratios provided for Antero Midstream Corp, we can observe the following trends:
1. Days of Inventory on Hand (DOH):
- Unfortunately, specific data for Days of Inventory on Hand is missing, making it difficult to assess the efficiency of inventory management over the years. Without this figure, we cannot determine the number of days the company holds inventory before selling it.
2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding ratio measures how long it takes for the company to collect cash after making a sale. A decreasing trend in DSO over the years from 45.37 days in 2019 to 29.39 days in 2023 indicates that the company has been improving its collection efficiency, which is a positive sign for its liquidity.
3. Number of Days of Payables:
- This ratio reflects the number of days it takes for the company to repay its suppliers. A higher number of days indicates the company is taking longer to pay its bills. Antero Midstream Corp showed fluctuating trends in the Number of Days of Payables, with 57.31 days in 2022 being significantly higher compared to 18.25 days in 2019. This may imply changes in the company's vendor payment policies or cash flow management.
Overall, while there is a lack of data for Days of Inventory on Hand, the decreasing trend in Days of Sales Outstanding and the fluctuating pattern in the Number of Days of Payables suggest an improvement in liquidity management practices at Antero Midstream Corp over the years. However, further analysis and additional information would be necessary for a more in-depth evaluation of the company's activity ratios.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.27 | 0.25 | 0.26 | 0.28 | 0.24 |
| Total asset turnover | 0.18 | 0.16 | 0.16 | 0.16 | 0.13 |
Antero Midstream Corp's long-term activity ratios provide valuable insights into how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio measures the company's ability to generate sales from its fixed assets. Over the past five years, the fixed asset turnover ratio has ranged from 0.26 to 0.30, indicating that the company has been relatively consistent in generating revenue from its fixed assets. However, the ratio has slightly decreased in 2023 compared to the previous years, potentially signaling a decrease in efficiency in utilizing fixed assets.
On the other hand, the total asset turnover ratio reflects how well the company is utilizing all of its assets to generate sales. Antero Midstream Corp has seen a gradual increase in its total asset turnover ratio over the past five years, from 0.14 in 2019 to 0.19 in 2023. This indicates that the company has been improving its efficiency in generating sales from its total assets.
Overall, while the fixed asset turnover ratio has shown some fluctuations, the total asset turnover ratio has displayed a positive trend, suggesting that Antero Midstream Corp has been improving its overall efficiency in utilizing its assets to generate revenue over the years.