Antero Midstream Partners LP (AM)

Short-term

Turnover ratios

Inventory turnover was not provided in the data table.

Receivables turnover: Antero Midstream Corp's receivables turnover ratio has been relatively stable over the past eight quarters, ranging between 10.67 and 12.55. This indicates that the company collects its accounts receivable efficiently, with higher turnover ratios suggesting faster collection periods.

Payables turnover: The payables turnover ratio for Antero Midstream Corp fluctuated significantly over the quarters, with a range between 4.21 and 14.25. A higher turnover ratio indicates that the company is paying off its suppliers more quickly, which could imply strong liquidity or negotiation power.

Working capital turnover was not provided in the data table.

In conclusion, the analysis of Antero Midstream Corp's activity ratios reveals efficient management of receivables and payables, with stable receivables turnover and fluctuating payables turnover. However, the lack of data for inventory turnover and working capital turnover limits a comprehensive assessment of the company's overall efficiency in managing its assets and liabilities.

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Average number of days

Days of Inventory on Hand (DOH) is not provided in the table. This ratio is important as it measures how many days, on average, a company holds inventory before it is sold. A lower number here indicates efficient inventory management.

Days of Sales Outstanding (DSO) for Antero Midstream Corp has ranged from 29.09 to 34.20 days over the past eight quarters. DSO measures how long it takes for the company to collect revenue after a sale is made. Lower DSO values are generally better as they indicate faster collections.

Number of Days of Payables for Antero Midstream Corp has fluctuated between 25.61 to 86.72 days over the same period. This metric reflects how long it takes a company to pay its suppliers. A higher number of days of payables signifies the company is taking longer to pay its bills, which can indicate better cash flow management but also may strain relationships with suppliers if too high.

To get a more comprehensive view of the working capital management of Antero Midstream Corp, it would be beneficial to calculate the Cash Conversion Cycle (CCC) by subtracting the average Days of Payables from the sum of the Days of Inventory on Hand and Days of Sales Outstanding. This metric would provide an indication of how efficiently the company is managing its working capital throughout the quarters.

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Long-term

Antero Midstream Corp's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, indicate the efficiency with which the company generates revenues relative to its assets.

The fixed asset turnover remained relatively stable around 0.28 to 0.29 throughout the quarters in 2023, suggesting that the company's fixed assets are utilized consistently to generate sales. This indicates that for every dollar invested in fixed assets, Antero Midstream Corp is generating approximately $0.28 to $0.29 in revenue. The consistency in this ratio could imply effective management of fixed assets to support operations.

On the other hand, the total asset turnover also remained steady at around 0.17 to 0.19 during the same period. This indicates that for every dollar invested in total assets, the company is generating revenues of approximately $0.17 to $0.19. While the total asset turnover ratio is lower than the fixed asset turnover, it still demonstrates that Antero Midstream Corp is efficiently using its assets to generate sales.

Overall, the stability of both the fixed asset turnover and total asset turnover ratios suggests that Antero Midstream Corp is effectively managing its assets to drive revenue generation. Analyzing these long-term activity ratios provides valuable insights into the company's operational efficiency and performance in utilizing its assets to support its business activities.