Peabody Energy Corp (BTU)

Short-term

Turnover ratios

The inventory turnover ratio for Peabody Energy Corp shows a fluctuating trend over the reported periods, ranging from a low of 8.34 to a high of 12.51. Generally, a higher inventory turnover indicates efficient management of inventory levels, with the ability to quickly convert inventory to sales. In this case, the company demonstrated varying efficiency levels in managing its inventory turnover during the periods analyzed.

On the other hand, the receivables turnover and payables turnover ratios are reported as "—" for all the periods, indicating a lack of available data to calculate these ratios. This lack of information on the turnover of receivables and payables limits the ability to assess the efficiency of the company in collecting receivables and paying suppliers.

The working capital turnover ratio, which measures how efficiently the company is utilizing its working capital to generate sales, also displays fluctuations over the periods provided. It ranged from a low of 3.14 to a high of 6.88, indicating variations in the company's ability to generate sales using its working capital efficiently. Generally, a higher working capital turnover ratio is preferable as it signifies that the company is efficiently using its working capital to generate revenue.

Overall, the analysis of Peabody Energy Corp's activity ratios suggests fluctuating performance in inventory turnover and working capital turnover, while the lack of data for receivables and payables turnover ratios limits a comprehensive assessment of the company's overall working capital management efficiency.

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Average number of days

Peabody Energy Corp's Days of Inventory on Hand (DOH) ratio indicates the average number of days the company holds on to its inventory before selling it. The trend in Peabody Energy Corp's DOH ratio shows fluctuations over the period under review, ranging from a low of 29.17 days on March 31, 2020, to a high of 43.79 days on September 30, 2024. Overall, the company seems to have managed its inventory levels relatively well, with the ratio generally stabilizing around the mid-30s days in recent quarters.

The Days of Sales Outstanding (DSO) ratio, which reflects how long it takes for the company to convert its accounts receivable into cash, is not available for Peabody Energy Corp as the data provided indicates "— days" for all the periods shown. This lack of information makes it difficult to evaluate the efficiency of the company in collecting payments from customers.

Furthermore, the Number of Days of Payables ratio, which shows the average number of days the company takes to pay its suppliers, is also not available for Peabody Energy Corp as the data provided indicates "— days" for all the periods shown. Without this information, it is challenging to assess the company's payment practices and its ability to manage its payables effectively.

In conclusion, while Peabody Energy Corp appears to have maintained relatively stable inventory levels based on the DOH ratio, the lack of data on DSO and payables hinders a complete assessment of its overall activity ratios and working capital management. It would be beneficial for stakeholders to have access to this additional information to better understand the company's operational efficiency and liquidity position.

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Long-term

The fixed asset turnover ratio for Peabody Energy Corp has shown a fluctuating trend over the years, starting at 0.92 in March 2020, dropping to a low of 0.87 in March 2021, and then gradually increasing to 1.97 by June 2023 before stabilizing around that level. This indicates that the company is generating more revenue relative to its fixed assets invested.

On the other hand, the total asset turnover ratio has also displayed variability, decreasing from 0.68 in March 2020 to 0.62 in December 2020 before eventually climbing to 0.96 by June 2023. The ratio has since fluctuated but has been relatively stable around the 0.70 to 0.75 range in the most recent periods. This suggests that Peabody Energy is efficiently utilizing its total assets to generate sales.

Overall, both ratios demonstrate the company's ability to effectively leverage its assets to generate revenue, with the fixed asset turnover showing an improving trend while the total asset turnover has shown more variability but indicates reasonable efficiency in asset utilization.