Antero Resources Corp (AR)

Short-term

Turnover ratios

Antero Resources Corp's activity ratios provide insights into the efficiency of the company's operations.

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company is managing its inventory.
- Antero Resources Corp's inventory turnover has been declining over the years from 0.36 in 2020 to 0.07 in 2021 and 0.09 in 2022.
- A lower inventory turnover may indicate issues with inventory management or slow sales.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently the company is collecting payments from its customers.
- Antero Resources Corp's receivables turnover has shown fluctuations, with a significant increase from 58.48 in 2021 to 201.15 in 2022, before decreasing to 109.86 in 2023 and 125.70 in 2024.
- A higher receivables turnover suggests faster collection of accounts receivable, which is generally positive for cash flow.

3. Payables Turnover:
- The payables turnover ratio indicates how quickly the company is paying its suppliers.
- Antero Resources Corp's payables turnover decreased from 36.38 in 2020 to 9.64 in 2021 and further to 4.22 in 2022.
- A lower payables turnover may suggest that the company is taking longer to pay its suppliers, which could impact supplier relationships.

4. Working Capital Turnover:
- Unfortunately, there is no data available for working capital turnover for Antero Resources Corp, which could provide insights into how effectively the company is utilizing its working capital.

In conclusion, while the receivables turnover of Antero Resources Corp has shown some improvement, the declining inventory turnover and payables turnover ratios may raise concerns about inventory management and payment practices that could impact the company's overall operational efficiency.

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Average number of days

Based on the provided data for Antero Resources Corp, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- In December 2020, the company had inventory that would take approximately 1,021.06 days to sell.
- This number increased significantly by December 2021 to 5,217.26 days, indicating a possible inefficiency in inventory management.
- By December 2022, the DOH decreased to 3,845.98 days, but still remained at a high level.
- As of December 2023 and 2024, the data is not available.

2. Days of Sales Outstanding (DSO):
- Antero Resources Corp took an average of 2.97 days to collect sales in December 2020.
- This number increased in December 2021 to 6.24 days, suggesting a slower collection of accounts receivable.
- By December 2022, the DSO improved significantly to 1.81 days, indicating more efficient accounts receivable management.
- In December 2023 and 2024, the DSO slightly increased, but remained relatively stable.

3. Number of Days of Payables:
- The company took an average of 10.03 days to pay its payables in December 2020.
- This number increased to 37.85 days by December 2021, indicating a potential delay in paying suppliers.
- By December 2022, the number further increased to 86.48 days, suggesting an even longer period before paying payables.
- The data for December 2023 and 2024 is not available.

Overall, the analysis of the activity ratios for Antero Resources Corp highlights trends in inventory management, accounts receivable collection, and payables payment. Monitoring these ratios can provide insights into the company's operational efficiency and liquidity management. It is crucial for the company to manage its inventory effectively, optimize accounts receivable collection, and maintain healthy relationships with suppliers for sustained financial health.

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Long-term

Antero Resources Corp's fixed asset turnover has shown fluctuation over the years, with the ratio increasing from 0.36 in 2020 to 0.74 in 2022, indicating a more efficient utilization of fixed assets to generate revenue. However, the ratio dropped to 0.47 in 2023 and further to 0.45 in 2024, suggesting a potential decline in efficiency in utilizing fixed assets during those years.

In terms of total asset turnover, the company's performance shows a similar pattern of variability. The total asset turnover ratio increased from 0.27 in 2020 to 0.51 in 2022, indicating a more effective use of total assets to generate revenue. However, the ratio declined to 0.35 in 2023 and 0.33 in 2024, suggesting a potential decrease in asset efficiency in those years.

Overall, while there were periods of improved efficiency in utilizing both fixed and total assets to generate revenue, the company experienced fluctuations in its long-term activity ratios, indicating a need for further analysis to understand the underlying factors driving the changes in asset turnover.