APA Corporation (APA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 12.79 | 8.94 | 11.29 | 9.40 | 7.17 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 21.69 | 142.74 | — | 30.36 | 8.24 |
APA Corporation's inventory turnover has shown an increasing trend over the past five years, starting at 7.17 in 2020 and reaching 12.79 in 2024. This indicates that the company is managing its inventory more efficiently, as it is turning over its inventory at a faster rate.
The receivables turnover ratio is not available for any of the years provided, which suggests that there is a lack of data to assess how effectively APA Corporation is collecting on its receivables.
Similarly, the payables turnover ratio is also not available for the years provided, making it difficult to evaluate how quickly the company is paying its suppliers.
In terms of working capital turnover, APA Corporation's performance has been quite volatile. The ratio was 8.24 in 2020, significantly increased to 30.36 in 2021, then data is missing for 2022, and surged to 142.74 in 2023 before decreasing to 21.69 in 2024. This erratic trend may signal fluctuations in the company's working capital management efficiency.
Overall, while APA Corporation has been improving its inventory turnover, the lack of data for receivables and payables turnover ratios limits a comprehensive analysis of its overall activity efficiency. The working capital turnover has shown significant fluctuations, reflecting potential challenges in managing working capital effectively over the years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 28.54 | 40.81 | 32.34 | 38.84 | 50.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
To analyze APA Corporation's activity ratios, we will focus on the Days of Inventory on Hand (DOH) metric provided in the data.
1. Days of Inventory on Hand (DOH):
- In 2020, APA Corporation had 50.87 days of inventory on hand.
- By the end of 2021, this metric improved to 38.84 days, indicating a more efficient inventory management.
- In 2022, the DOH ratio further decreased to 32.34 days, suggesting a continued improvement in managing inventory levels.
- However, there was a slight increase in DOH to 40.81 days by the end of 2023.
- In 2024, APA Corporation significantly reduced its inventory holding period to 28.54 days, indicating a strong control over its inventory levels.
Overall, APA Corporation showed a trend of decreasing DOH over the years, which is generally considered positive as it signifies better inventory turnover and management efficiency. However, the slight increase in 2023 should be monitored to ensure optimal inventory control in the future.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.27 | 0.20 | 0.10 |
| Total asset turnover | 0.50 | 0.54 | 0.84 | 0.60 | 0.35 |
The Fixed Asset Turnover ratio for APA Corporation has shown a positive trend over the past few years, increasing from 0.10 in 2020 to 0.27 in 2022. This indicates that the company is generating more revenue relative to its investment in fixed assets, reflecting improved efficiency in utilizing its long-term assets to generate sales.
On the other hand, the Total Asset Turnover ratio demonstrates a slightly different pattern. It increased from 0.35 in 2020 to 0.84 in 2022, indicating a high level of efficiency in generating sales relative to total assets. However, there was a slight decline in 2023 and 2024, suggesting a potential decrease in overall asset utilization efficiency during those years.
Overall, APA Corporation has shown improvements in both fixed asset turnover and total asset turnover ratios, signaling enhanced operational efficiency and effective management of long-term assets to support revenue generation.