Constellation Energy Corp (CEG)

Short-term

Turnover ratios

Based on the data provided for Constellation Energy Corp's activity ratios, we can analyze the following:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times during a period the inventory is sold and replaced. Constellation Energy Corp's inventory turnover has generally been increasing from 12.18 in 2020 to 14.46 in 2023, indicating that the company is selling its inventory more frequently over the years. However, there is a significant drop in 2024 to 3.85, which may indicate potential inventory management issues that need to be addressed.

2. Receivables Turnover: The receivables turnover ratio reflects how efficiently a company collects its receivables from customers. In this case, the data shows "—," meaning there is no data available for receivables turnover. This could indicate that either the company does not heavily rely on credit sales, or the data for this ratio is not provided.

3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Similar to receivables turnover, the data shows "—," indicating that there is no information available for payables turnover. This could be due to various reasons, such as the company's payment terms or the nature of its business relationships with suppliers.

4. Working Capital Turnover: The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales. Constellation Energy Corp's working capital turnover was 10.19 in 2020, increased to 16.07 in 2022, and then decreased to 12.58 in 2023. The fluctuations in this ratio indicate changes in the company's efficiency in utilizing its working capital over the years.

Overall, while the inventory turnover ratio suggests improvements in managing inventory, the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's efficiency in managing its working capital and relationships with customers and suppliers.

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Average number of days

The activity ratios of Constellation Energy Corp provide important insights into the company's efficiency in managing its operations.

1. Days of Inventory on Hand (DOH):
- The company's DOH decreased from 29.96 days in 2020 to 24.63 days in 2022 before increasing to 94.82 days in 2024.
- A decreasing trend in DOH indicates that the company is selling its inventory faster.
- However, the sharp increase in DOH in 2024 may indicate potential inventory management challenges or changes in the business environment that require further investigation.

2. Days of Sales Outstanding (DSO):
- Data for DSO is not available for any year, making it difficult to assess the company's efficiency in collecting accounts receivable.
- Lack of DSO data may suggest that the company's sales are primarily conducted on cash basis or the company does not extend credit terms to customers.

3. Number of Days of Payables:
- Data for the number of days of payables is not available for any year, limiting our ability to analyze the company's relationship with its suppliers.
- Absence of payables data makes it challenging to evaluate how efficiently the company manages its payment obligations to suppliers.

In conclusion, while the trends in inventory turnover are observable, the lack of data on sales outstanding and payables days restricts a comprehensive analysis of Constellation Energy Corp's overall activity ratios. Further information on these metrics would be beneficial for a more thorough assessment of the company's operational efficiency.

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Long-term

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. For Constellation Energy Corp, the trend in fixed asset turnover indicates an improvement over the years. From 0.87 in December 2020, the ratio increased to 1.00 in December 2021 and further to 1.23 in December 2022. However, data for December 2023 and 2024 is not available.

This improvement implies that Constellation Energy Corp is generating more revenue per dollar of fixed assets invested, reflecting increased efficiency in asset utilization over the years.

Total asset turnover ratio, on the other hand, indicates the efficiency of the company in generating sales from its total assets. In the case of Constellation Energy Corp, the total asset turnover ratio also shows a positive trend, although there was a slight dip in 2024 compared to 2022. The ratio increased from 0.37 in December 2020 to 0.52 in December 2022 before decreasing to 0.45 in December 2024.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that Constellation Energy Corp is effectively using its assets to generate revenue, although the company may need to closely monitor the total asset turnover ratio to ensure sustained efficiency in asset utilization.