Constellation Energy Corp (CEG)

Short-term

Turnover ratios

1. Inventory Turnover: As the inventory turnover ratio for all four years is reported as 0.00, it indicates that Constellation Energy Corporation is not effectively managing its inventory levels or there might be issues with inventory tracking. This could potentially lead to excess or obsolete inventory, which may impact the company's cash flow and profitability.

2. Receivables Turnover: The receivables turnover ratio has been relatively stable over the past four years, ranging from 7.37 to 9.76. This indicates that Constellation Energy Corporation is efficient in collecting payments from its customers. A higher turnover ratio suggests that the company is able to quickly convert its accounts receivable into cash, which is a positive sign of effective credit management.

3. Payables Turnover: The payables turnover ratio is not provided for the years 2023, 2021, and 2020, and for 2022 it is reported as 0.00. This suggests that there is missing or insufficient data to calculate this ratio, making it difficult to assess how efficiently the company is managing its accounts payable.

4. Working Capital Turnover: The working capital turnover ratio has shown fluctuations over the years, with the highest ratio reported in 2019. A higher working capital turnover ratio indicates that the company is effectively using its working capital to generate sales. However, the absence of data for 2021 and the decline in 2023 compared to previous years might suggest a need for further analysis to understand the company's working capital management efficiency.

In conclusion, while Constellation Energy Corporation demonstrates strong receivables turnover and working capital efficiency, the lack of data for inventory and payables turnover ratios creates challenges in evaluating the company's overall operational performance. Further analysis and additional information would be required to gain a comprehensive understanding of the company's activity ratios.

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Average number of days

Based on the provided data for Constellation Energy Corporation, we can analyze the activity ratios as follows:

1. Days of Sales Outstanding (DSO):
- The DSO ratio indicates the average number of days it takes for the company to collect its accounts receivable.
- The trend shows an increasing DSO from 37.39 days in 2020 to 49.52 days in 2022 before decreasing to 41.76 days in 2023.
- A decreasing DSO ratio suggests that the company is collecting its receivables more efficiently in 2023 compared to 2022.
- However, it is important to monitor the trend closely to ensure efficient management of accounts receivable going forward.

2. Days of Inventory on Hand (DOH):
- Unfortunately, data for Days of Inventory on Hand is not provided for the years in question, so we are unable to assess how efficiently the company is managing its inventory levels over this period.
- Monitoring the DOH ratio would help in evaluating the company's inventory management practices and efficiency in turning over its inventory into sales.

3. Number of Days of Payables:
- The days of payables information is not provided in the data table, which limits our ability to evaluate the company's payment practices and relationships with suppliers.
- Understanding the days of payables is crucial as it helps in determining how long the company takes to pay its suppliers, impacting cash flow and liquidity.

Overall, while the analysis of DSO provides insights into how efficiently Constellation Energy Corporation is collecting its accounts receivable, the absence of data for DOH and days of payables limits a comprehensive assessment of the company's activity ratios. Monitoring these ratios over time and comparing them to industry benchmarks can help in identifying areas for improvement and ensuring effective working capital management.

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Long-term

Constellation Energy Corporation's long-term activity ratios show fluctuations over the past four years. The fixed asset turnover ratio, which measures how efficiently the company generates sales from its fixed assets, has been declining since 2022. This trend indicates that the company may be utilizing its fixed assets less efficiently to generate revenue.

On the other hand, the total asset turnover ratio, which measures how effectively the company utilizes all its assets to generate sales, has been gradually increasing over the same period. This suggests that Constellation Energy Corporation has been improving its overall asset utilization efficiency in generating sales.

However, it's important to note that both ratios are relatively low, with the total asset turnover ratio consistently below 1. This indicates that the company may have a significant amount of assets that are underutilized in generating sales. Constellation Energy Corporation should focus on optimizing its asset utilization to improve its overall efficiency and profitability in the long term.