CNX Resources Corp (CNX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 6.95 | 5.58 | 22.98 | 67.95 | 69.57 |
| Receivables turnover | 25.64 | 3.56 | 2.23 | 8.37 | 9.17 |
| Payables turnover | 0.94 | 0.79 | 1.16 | 5.55 | 2.40 |
| Working capital turnover | — | — | — | — | — |
The activity ratios of CNX Resources Corp reveal certain trends and patterns over the past five years.
1. Inventory Turnover: The company has consistently reported an inventory turnover ratio of 0.00 across all the years provided. This could suggest that CNX Resources Corp manages its inventory levels efficiently, or it may indicate that the company operates in an industry where inventory turnover is not a significant metric.
2. Receivables Turnover: The receivables turnover ratio has shown a positive trend, with a substantial increase from 7.38 in 2019 to 25.64 in 2023. This indicates that CNX Resources Corp is collecting its accounts receivable more efficiently over time. A higher receivables turnover ratio implies that the company is able to convert its credit sales into cash more quickly.
3. Payables Turnover: Similar to inventory turnover, the payables turnover ratio has been consistently 0.00 for all years presented. This may suggest that CNX Resources Corp operates in a way where payables turnover is not a significant metric, or the company may have specific payment terms with suppliers that result in a low turnover ratio.
4. Working Capital Turnover: The data provided does not include the working capital turnover ratio for any of the years. This ratio measures how effectively a company is using its working capital to generate sales revenue. Without this information, it is challenging to assess CNX Resources Corp's efficiency in utilizing its working capital.
In summary, while CNX Resources Corp shows varying results in its activity ratios, the company appears to be efficient in managing its accounts receivable, with a notable improvement in receivables turnover over the years. The consistent 0.00 ratios for inventory turnover and payables turnover may indicate specific industry characteristics or operational practices of the company that merit further investigation.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 52.49 | 65.36 | 15.88 | 5.37 | 5.25 |
| Days of sales outstanding (DSO) | days | 14.24 | 102.64 | 163.56 | 43.60 | 39.79 |
| Number of days of payables | days | 389.78 | 460.52 | 314.54 | 65.74 | 152.17 |
Based on the activity ratios provided for CNX Resources Corp, we can observe the following trends:
1. Days of Sales Outstanding (DSO): DSO measures the average number of days a company takes to collect revenue after a sale. The trend for CNX Resources Corp shows a significant improvement from 2019 to 2023. The DSO declined from 49.47 days in 2019 to 14.24 days in 2023. This indicates that the company has been able to collect revenue more efficiently over the years, potentially improving its cash flow and working capital management.
2. Days of Inventory on Hand (DOH): Unfortunately, the data for DOH is not provided for CNX Resources Corp across the years. DOH measures the number of days a company takes to sell its inventory. Without this data, it is difficult to assess how well the company manages its inventory levels and turnover efficiency.
3. Number of Days of Payables: The information for the number of days of payables is not available for CNX Resources Corp in the given table. This ratio measures how long a company takes to pay its suppliers. Analyzing this metric would have provided insights into the company's payment practices and liquidity management.
Overall, the improvement in Days of Sales Outstanding (DSO) for CNX Resources Corp indicates enhanced efficiency in collecting revenue, which is a positive sign for the company's financial health. However, without data on inventory turnover (DOH) and payables, a comprehensive analysis of the company's overall working capital management is limited. It is recommended to obtain and analyze this missing data to gain a more complete understanding of CNX Resources Corp's activity ratios.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.47 | 0.18 | 0.11 | 0.18 | 0.27 |
| Total asset turnover | 0.40 | 0.15 | 0.09 | 0.16 | 0.21 |
The long-term activity ratios of CNX Resources Corp, specifically the fixed asset turnover and total asset turnover, exhibit the company's efficiency in utilizing its assets to generate revenue over the past five years.
The fixed asset turnover ratio has fluctuated over the years, starting at 0.22 in 2019 and reaching a peak of 0.55 in 2022 before declining to 0.47 in 2023. This ratio indicates the company's ability to generate revenue from its fixed assets, such as property, plant, and equipment. The decreasing trend from 2022 to 2023 suggests that CNX Resources Corp may have experienced some inefficiencies or decreased productivity in utilizing its fixed assets to generate sales.
On the other hand, the total asset turnover ratio reflects how well the company utilizes all its assets, both fixed and current, to generate sales. CNX Resources Corp's total asset turnover ratio has also varied significantly, ranging from 0.17 in 2019 to 0.46 in 2022 before declining to 0.40 in 2023. This indicates fluctuations in the efficiency of the company in generating revenue from its total asset base.
Overall, the decreasing trends in both the fixed asset turnover and total asset turnover ratios from 2022 to 2023 may suggest that CNX Resources Corp could focus on improving its asset utilization efficiency to increase revenue generation in the future. Further analysis of the company's operational strategies and asset management practices could help in addressing potential inefficiencies and optimizing asset utilization for improved financial performance.