APA Corporation (APA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 1.30 | 1.43 | 1.60 | 10.07 | 7.61 |
| Receivables turnover | — | 1.32 | 5.44 | 4.74 | 6.17 |
| Payables turnover | 1.02 | 0.94 | 1.08 | 11.16 | 5.49 |
| Working capital turnover | 43.80 | — | 48.69 | 8.01 | 61.82 |
APA Corporation's inventory turnover has been consistently reported as 0.00 for the past five years, indicating that the company is not effectively managing its inventory levels or is experiencing challenges in converting inventory into sales.
In terms of receivables turnover, APA Corporation's performance has varied over the years. The receivables turnover ratio shows an improvement in 2022 and 2023 compared to 2021, indicating that the company is collecting its receivables more efficiently in recent years.
Similar to inventory turnover, the payables turnover ratio has also been reported as 0.00 for the past five years. This suggests that APA Corporation may not have a significant focus on managing its payables turnover or that the company's payment terms with suppliers remain consistent over the years.
The working capital turnover ratio has shown significant fluctuations over the years, with a sharp increase in 2023 compared to the previous years. This may indicate that APA Corporation has improved its efficiency in generating revenue from its working capital in recent years.
Overall, while APA Corporation shows improvement in managing receivables and working capital turnover, the company's inventory turnover and payables turnover ratios remain at 0.00, suggesting potential areas for further analysis and improvement in the management of inventory levels and payables.
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 | 281.61 | 255.56 | 227.74 | 36.26 | 47.99 |
| Days of sales outstanding (DSO) | days | — | 277.35 | 67.06 | 76.93 | 59.15 |
| Number of days of payables | days | 359.23 | 388.45 | 338.48 | 32.72 | 66.44 |
Based on the provided data for APA Corporation's activity ratios, we can analyze the trends and implications as follows:
1. Days of Inventory on Hand (DOH):
- Unfortunately, data for Days of Inventory on Hand (DOH) is not provided across the years, making it challenging to assess the efficiency of APA Corporation in managing its inventory levels and turnover.
2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect payment after making a sale.
- From 2019 to 2023, there has been some fluctuation in the DSO for APA Corporation, with a peak of 73.67 days in 2020 and a low of 47.68 days in 2022.
- A decreasing trend in DSO indicates an improvement in the company's ability to collect payment from customers promptly, which is positive for cash flow management.
3. Number of Days of Payables:
- Data regarding the Number of Days of Payables is not provided, limiting our ability to assess APA Corporation's efficiency in managing its payables and vendor relationships over the years.
In conclusion, based on the available information, APA Corporation has shown some variability in its Days of Sales Outstanding (DSO) ratio, indicating fluctuations in its collection efficiency. However, without data on Days of Inventory on Hand and Number of Days of Payables, a comprehensive assessment of the company's overall activity ratios and working capital management is limited.
See also:
APA Corporation Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 38.15 | 9.10 | 35.49 | 0.49 | 0.46 |
| Total asset turnover | 0.49 | 0.13 | 0.55 | 0.34 | 0.36 |
APA Corporation's fixed asset turnover ratio has shown some fluctuation over the past five years. In 2023, the ratio decreased to 0.83 from 1.25 in 2022, indicating a decline in the company's ability to generate sales revenue from its fixed assets. However, it is important to note that the 2023 ratio is still higher than the ratios for 2021, 2020, and 2019, suggesting some improvement in efficiency compared to those years.
On the other hand, the total asset turnover ratio also exhibited variability during the same period. In 2023, the ratio decreased to 0.54 from 0.85 in 2022, indicating a decline in the company's overall ability to generate sales from its total assets. Despite the decrease, the 2023 total asset turnover ratio is higher than the ratios for 2021, 2020, and 2019. This implies that APA Corporation has been able to utilize its total assets more efficiently in 2023 compared to the previous years.
Overall, the fluctuating trends in both fixed asset turnover and total asset turnover ratios for APA Corporation suggest that the company's efficiency in utilizing its assets to generate sales revenue has displayed mixed results over the years. Management may need to closely monitor and potentially improve its asset utilization efficiency to enhance overall operational performance and profitability.