CNX Resources Corp (CNX)

Short-term

Turnover ratios

The activity ratios of CNX Resources Corp provide insight into how effectively the company is managing its operations and resources.

1. Inventory Turnover:
- The inventory turnover ratio decreased from 67.95 in December 2020 to 22.98 in December 2021, indicating that the company took longer to sell its inventory.
- There was a further decrease in the ratio to 5.58 in December 2022, suggesting a significant decline in the efficiency of inventory management.
- In December 2023 and December 2024, the inventory turnover improved to 6.95 and 10.20, respectively, but it remained lower compared to the ratio in December 2020.

2. Receivables Turnover:
- The receivables turnover ratio declined from 8.37 in December 2020 to 2.23 in December 2021, indicating a longer collection period for receivables.
- There was an improvement in the ratio to 3.56 in December 2022, but it remained relatively low.
- A notable increase in the ratio to 25.64 in December 2023 suggests a significant improvement in collecting receivables efficiently. However, it decreased to 6.42 in December 2024.

3. Payables Turnover:
- The payables turnover ratio decreased from 5.55 in December 2020 to 1.16 in December 2021, indicating that the company took longer to pay its suppliers.
- There was a further decline in the ratio to 0.79 in December 2022, signaling potential liquidity or payment issues.
- The ratio slightly improved in December 2023 and December 2024 to 0.94 and 1.21, respectively, but it remained at relatively low levels.

4. Working Capital Turnover:
- The data shows that the company did not report any figures for the working capital turnover ratio from December 2020 to December 2024. This may indicate that the company's management did not find this ratio to be useful or did not disclose relevant information related to working capital utilization.

In conclusion, analyzing CNX Resources Corp's activity ratios reveals fluctuations in inventory turnover, receivables turnover, and payables turnover over the years. Improvements in these ratios indicate enhanced efficiency in managing inventory, collecting receivables, and paying suppliers. However, the company should closely monitor these ratios to ensure optimal management of its working capital and operational activities.

---

Average number of days

CNX Resources Corp's activity ratios provide insights into how efficiently the company manages its inventory, collects its receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- The DOH shows the number of days it takes for the company to sell its inventory.
- CNX Resources Corp's DOH has increased from 5.37 days in 2020 to 35.80 days in 2024.
- This increase indicates that the company is holding onto its inventory for a longer period, which may tie up its capital and impact liquidity.

2. Days of Sales Outstanding (DSO):
- DSO measures how quickly the company collects its accounts receivable.
- CNX Resources Corp's DSO has been fluctuating over the years, with a significant increase in 2021 and a decrease in 2023.
- The decrease in DSO in 2023 suggests that the company improved its efficiency in collecting receivables, leading to a faster cash conversion cycle.

3. Number of Days of Payables:
- This ratio indicates how long it takes for the company to pay its suppliers or trade payables.
- CNX Resources Corp's number of days of payables increased steadily from 65.74 days in 2020 to 302.79 days in 2024.
- The significant increase in payables days suggests that the company is taking longer to settle its payables, which could have implications for supplier relations and cash management.

Overall, CNX Resources Corp's activity ratios reflect changes in its operational efficiency and management of working capital over the years. An increase in DOH and payables days may indicate potential liquidity challenges, while fluctuations in DSO suggest changes in the company's collection practices. A holistic analysis of these ratios can help stakeholders assess the company's operational performance and financial health.

---

Long-term

The fixed asset turnover ratio for CNX Resources Corp has shown some fluctuations over the years, starting at 0.18 in 2020, dropping to 0.11 in 2021, before increasing to 0.18 in 2022, sharply rising to 0.47 in 2023, and declining again to 0.17 in 2024. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio reflects a similar trend, with a value of 0.16 in 2020, decreasing to 0.09 in 2021, improving to 0.15 in 2022, significantly increasing to 0.40 in 2023, and then dropping back to 0.15 in 2024. This ratio measures the company's overall efficiency in generating sales from its total assets.

The improvement in both turnover ratios in 2023 suggests that CNX Resources Corp became more efficient in utilizing its assets to generate revenue. However, the decline in these ratios in 2024 may indicate a potential inefficiency in asset utilization which could be a concern for the company's long-term performance. Further analysis of the company's operational strategies and asset management practices may be necessary to understand the reasons behind these fluctuations and to determine the company's future prospects.