Antero Midstream Partners LP (AM)

Short-term

Turnover ratios

The activity ratios of Antero Midstream Partners LP provide insights into how efficiently the company is managing its assets and liabilities in the specified periods.

1. Inventory Turnover: Data shows that there is no information available for Inventory Turnover for the years 2020, 2021, 2022, 2023, and 2024. This could imply that Antero Midstream Partners LP may not hold significant levels of inventory or that the company's primary operations do not heavily rely on inventory turnover.

2. Receivables Turnover: The Receivables Turnover ratio indicates how many times a company collects its accounts receivable during a period. The trend reveals a gradual increase over the years from 9.81 in 2020 to 10.84 in 2021 and 10.49 in 2022. This improvement suggests that Antero Midstream Partners LP is becoming more efficient in collecting payments from its customers.

3. Payables Turnover: The Payables Turnover ratio measures how quickly a company pays its suppliers. The data shows a significant decrease in Payables Turnover from 105.32 in 2020 to 12.58 in 2021 and 13.85 in 2022. Such a decline may indicate changes in the company's payment terms or its relationships with suppliers.

4. Working Capital Turnover: Working Capital Turnover ratio reflects how effectively a company generates revenue from its working capital. The ratio of 63.38 in 2024 suggests that Antero Midstream Partners LP produced $63.38 in revenue for each dollar of working capital in that year. This indicates efficient utilization of working capital to generate sales.

In conclusion, while the data availability for Inventory Turnover and Working Capital Turnover is limited, the trends in Receivables Turnover and Payables Turnover ratios suggest improvements in managing accounts receivable and paying suppliers, respectively. These insights can help stakeholders assess Antero Midstream Partners LP's operational efficiency and working capital management.

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Average number of days

The analysis of Antero Midstream Partners LP activity ratios based on the provided data is as follows:

1. Days of Inventory on Hand (DOH):
- There is no data available for the Days of Inventory on Hand for the years 2020 to 2024. Without this information, it is difficult to evaluate the efficiency of Antero Midstream Partners LP in managing its inventory levels.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding decreased from 37.21 days in 2020 to 33.68 days in 2021, indicating that the company collected its accounts receivable more quickly in 2021. The further decrease to 34.78 days in 2022 suggests continued efficiency in collecting revenue from sales.

3. Number of Days of Payables:
- The Number of Days of Payables increased significantly from 3.47 days in 2020 to 29.03 days in 2021, and then decreased slightly to 26.35 days in 2022. This indicates that Antero Midstream Partners LP took longer to pay its suppliers in 2021, possibly indicating changes in its payment terms or cash flow management strategies.

Overall, the data provided shows improvements in the efficiency of accounts receivable collection but also highlights a significant increase in the number of days of payables in the most recent year. Monitoring these activity ratios can provide insights into the company's working capital management and operational efficiency.

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Long-term

To analyze Antero Midstream Partners LP's long-term activity ratios, we will look at the fixed asset turnover and total asset turnover ratios.

- Fixed asset turnover: This ratio measures how efficiently the company is generating revenues from its fixed assets. A decreasing trend can indicate that the company is not utilizing its fixed assets effectively to generate sales. Antero Midstream Partners LP's fixed asset turnover has declined from 0.28 in 2020 to 0.25 in 2022 before slightly increasing to 0.28 in 2024. This suggests that the company may have experienced some challenges in generating sales from its fixed assets in the middle years but managed to improve efficiency by the end of the period.

- Total asset turnover: This ratio reflects the company's ability to generate sales from its total assets. An increasing trend in this ratio indicates that the company is becoming more efficient in utilizing its assets to generate revenue. Antero Midstream Partners LP's total asset turnover remained relatively stable from 2020 to 2022 at 0.16 before increasing to 0.19 in 2024. This improvement suggests that the company was able to enhance its overall asset utilization efficiency over the years, leading to increased revenue generation.

Overall, the analysis of these long-term activity ratios indicates that Antero Midstream Partners LP made progress in improving its asset utilization efficiency, especially in generating sales from its total assets, as evidenced by the increase in total asset turnover ratio over the years. However, there was a slight decline in fixed asset turnover in the middle years, implying some challenges in generating revenue from fixed assets which were subsequently overcome towards the end of the period, as indicated by the improvement in the fixed asset turnover ratio.