Black Hills Corporation (BKH)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Inventory turnover 0.44 0.43 0.52 0.55 0.34 0.31 0.44 0.61 0.43 -1.83 -1.73 -1.93 -1.70 1.04 0.55 0.62 0.49 0.47 0.55 0.66
Receivables turnover 6.32 8.08 7.40 4.08 4.85 6.64 6.12 4.02 5.74 7.13 6.81 4.58 5.95 6.97 6.75 4.88 6.37 8.07 7.46 4.54
Payables turnover 0.38 0.58 0.54 0.42 0.23 0.37 0.36 0.38 0.30 -1.88 -1.48 -1.24 -1.09 0.86 0.49 0.42 0.29 0.40 0.38 0.32
Working capital turnover — — — — — — — 39.19 — — — — — — 57.21 — — — — —

Black Hills Corporation's activity ratios provide insights into the efficiency of its operations.

- Inventory turnover improved from 5.93 in Q4 2022 to 6.11 in Q4 2023, indicating that inventory was converted into sales more frequently during the most recent quarter.
- Receivables turnover fluctuated over the quarters, ranging from 4.85 to 10.26. This ratio measures how quickly the company collects outstanding receivables, with a higher number indicating more efficient collections.
- Payables turnover also varied, ranging from 3.97 to 9.57. A higher payables turnover suggests that the company is paying its suppliers more quickly.
- Working capital turnover was not provided for Q4 2023, but in Q1 2022 it was exceptionally high at 39.19, possibly due to a unique circumstance such as a large contract or investment.

Overall, these activity ratios suggest that Black Hills Corporation has been managing its inventory, receivables, and payables efficiently to support its operations and cash flow.

Average number of days

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 820.23 854.96 697.80 659.60 1,062.72 1,192.72 827.98 598.63 856.79 — — — — 352.01 658.38 589.48 751.37 775.96 661.06 555.48
Days of sales outstanding (DSO) days 57.74 45.15 49.34 89.47 75.21 54.96 59.62 90.78 63.61 51.21 53.60 79.70 61.39 52.33 54.08 74.81 57.28 45.22 48.96 80.44
Number of days of payables days 950.22 630.92 681.27 879.17 1,588.45 999.69 1,006.03 957.42 1,235.78 — — — — 423.47 738.86 865.20 1,240.97 915.28 967.56 1,132.03

Black Hills Corporation's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- Black Hills Corporation has shown fluctuations in its inventory management over the past eight quarters.
- The DOH decreased from 61.52 days in Q4 2022 to 35.94 days in Q1 2023, indicating a significant improvement in managing inventory levels.
- However, there was a slight increase in DOH in Q4 2023 compared to the previous quarter, which suggests a potential buildup of inventory.

2. Days of Sales Outstanding (DSO):
- The DSO ratio also depicts variability in Black Hills Corporation's collection efficiency.
- The DSO decreased from 75.21 days in Q4 2022 to 35.56 days in Q3 2023, indicative of a more efficient collection process.
- However, the DSO increased in Q4 2023, reflecting a longer time taken to collect receivables compared to the previous quarter.

3. Number of Days of Payables:
- Black Hills Corporation has shown fluctuations in the number of days it takes to pay its payables over the analyzed period.
- The company managed to significantly reduce its payables days in Q4 2023 compared to Q4 2022, indicating a more efficient payment process.
- The volatility in payables days may suggest changes in the company's payment policies or relationships with suppliers.

In conclusion, Black Hills Corporation's activity ratios reflect some improvements in inventory management and payables days but also show fluctuations in receivables collection efficiency. It is important for the company to consistently monitor and optimize these ratios to enhance its overall operational efficiency and financial performance.

Long-term

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 0.33 0.36 0.37 0.39 0.38 0.35 0.34 0.33 0.30 0.30 0.30 0.29 0.28 0.29 0.29 0.30 0.32 0.33 0.34 0.36
Total asset turnover 0.24 0.25 0.27 0.28 0.27 0.25 0.25 0.23 0.21 0.21 0.21 0.21 0.21 0.22 0.22 0.22 0.23 0.24 0.25 0.25

The long-term activity ratios of Black Hills Corporation, as represented by the fixed asset turnover and total asset turnover, have exhibited relatively stable trends over the past eight quarters.

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Black Hills Corporation's fixed asset turnover has ranged from 0.33 to 0.39 over the past two years. This indicates that for every dollar invested in fixed assets, the company is generating between $0.33 and $0.39 in revenue, reflecting a moderate level of efficiency.

2. Total Asset Turnover: The total asset turnover ratio evaluates how effectively a company is using all its assets to generate sales. Black Hills Corporation's total asset turnover has fluctuated between 0.23 and 0.28 during the same period. This suggests that, on average, the company is generating between $0.23 and $0.28 in revenue for every dollar of total assets it possesses, indicating a satisfactory level of asset utilization.

Overall, the long-term activity ratios of Black Hills Corporation demonstrate a consistent operational performance in terms of asset turnover, with both fixed asset turnover and total asset turnover figures remaining relatively stable over the past eight quarters. This indicates that the company has been effectively utilizing its assets to generate revenue and reflects a balanced approach to asset management.