Peabody Energy Corp (BTU)

Short-term

Turnover ratios

Peabody Energy Corp's activity ratios provide insights into how efficiently the company manages its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- Peabody Energy Corp's inventory turnover has shown a generally decreasing trend from 2021 to 2024, with figures ranging from 8.70 to 11.26. This indicates that the company is selling its inventory at a slower pace in recent years. A lower inventory turnover may suggest excess inventory levels or challenges in selling products efficiently.

2. Receivables Turnover:
- The data provided does not include information on Peabody Energy Corp's receivables turnover for the years analyzed. Receivables turnover is a key indicator of how quickly a company collects payments from its customers. Without this data, it is challenging to assess the company's effectiveness in managing its receivables.

3. Payables Turnover:
- Similar to receivables turnover, the data lacks information on payables turnover for Peabody Energy Corp. Payables turnover measures how fast a company pays its suppliers. Understanding this ratio is crucial for assessing the company's payment practices and relationships with its suppliers.

4. Working Capital Turnover:
- Peabody Energy Corp's working capital turnover has fluctuated over the years, with values ranging from 3.43 to 4.75. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales revenue. The improvement in 2023 highlights potential enhancements in the utilization of working capital, which may have contributed to increased sales efficiency.

In conclusion, while the inventory turnover and working capital turnover provide some insights into Peabody Energy Corp's activity efficiency, the lack of data on receivables turnover and payables turnover limits a comprehensive assessment of the company's overall management of its operating cycle.

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Average number of days

Peabody Energy Corp's activity ratios provide insights into the efficiency of the company's operations.

1. Days of Inventory on Hand (DOH):
- The DOH ratio measures the number of days inventory is held before being sold.
- Peabody Energy Corp's DOH has decreased from 37.82 days in 2020 to 32.41 days in 2021, indicating an improvement in inventory turnover efficiency.
- However, the ratio slightly increased to 32.84 days in 2022, followed by a further increase to 37.93 days in 2023, and a significant rise to 41.97 days in 2024. These increases suggest a potential slowdown in inventory turnover efficiency, which could tie up more capital in inventory.

2. Days of Sales Outstanding (DSO):
- DSO represents the average number of days it takes for the company to collect payment after a sale.
- The data provided does not include DSO values for Peabody Energy Corp for the years under consideration, indicating a lack of information on receivables collection efficiency.

3. Number of Days of Payables:
- The number of days of payables ratio reflects how long the company takes to pay its suppliers.
- The data does not include information on the number of days of payables for Peabody Energy Corp for the years analyzed, preventing an assessment of the company's payables management.

In conclusion, while the decreasing trend in DOH initially indicated improved inventory turnover, the subsequent increase could raise concerns about potential inefficiencies. The absence of DSO and payables data limits a comprehensive evaluation of Peabody Energy Corp's activity ratios for the years in question.

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Long-term

The Fixed Asset Turnover ratio for Peabody Energy Corp has shown an upward trend over the years, indicating an improvement in the company's ability to generate sales from its fixed assets. It increased from 0.93 in 2020 to 1.72 in 2022. However, the data for 2023 and 2024 is unavailable.

The Total Asset Turnover ratio, on the other hand, reflects the company's efficiency in utilizing its total assets to generate revenue. Peabody Energy Corp's Total Asset Turnover ratio fluctuated during the period, starting at 0.62 in 2020, reaching a peak of 0.89 in 2022, and then declining to 0.71 in 2024.

Overall, the upward trend in Fixed Asset Turnover suggests better efficiency in utilizing fixed assets while the fluctuation in Total Asset Turnover indicates varying levels of efficiency in utilizing both fixed and current assets to generate revenue over the years.