CNX Resources Corp (CNX)

Short-term

Turnover ratios

Based on the provided data, the analysis of CNX Resources Corp's activity ratios is as follows:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory by showing how many times the inventory is sold and replaced over a period. CNX Resources Corp's inventory turnover has been fluctuating over the years, ranging from a high of 85.12 in March 2020 to a low of 5.06 in March 2023. A decreasing trend in inventory turnover may indicate potential issues such as overstocking or declining sales efficiency.

2. Receivables Turnover: The receivables turnover ratio reflects how quickly a company collects payments from its customers. CNX Resources Corp's receivables turnover has experienced significant fluctuations, with a peak of 44.91 in September 2023 and a low of 5.45 in September 2022. A higher turnover ratio generally indicates that the company is efficient in collecting payments from customers.

3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. CNX Resources Corp's payables turnover has been relatively stable, showing a gradual decrease over the years from 7.32 in September 2020 to 1.15 in December 2024. A lower turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially affecting relationships with vendors.

4. Working Capital Turnover: The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales. Unfortunately, the data provided for CNX Resources Corp's working capital turnover is missing for all periods except March 31, 2020. This lack of information makes it challenging to assess the company's performance in utilizing working capital efficiently over time.

In conclusion, CNX Resources Corp's activity ratios demonstrate varying levels of efficiency in managing inventory, collecting receivables, and paying payables over the analyzed periods. It is essential for the company to closely monitor these ratios to ensure optimal operational performance and financial health.

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Average number of days

Based on the provided data for CNX Resources Corp, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The average number of days CNX Resources holds inventory has been increasing over the years, from around 4.29 days in March 2020 to 37.39 days in December 2024. This indicates a significant increase in the holding period of inventory, which may signal potential inefficiencies in managing inventory levels.

2. Days of Sales Outstanding (DSO):
- CNX Resources' DSO fluctuated over the years, ranging from a low of 8.13 days in September 2023 to a high of 66.94 days in September 2022. Generally, a lower DSO indicates faster collection of receivables, while a higher DSO suggests slower collection. The company must closely monitor changes in DSO to ensure timely collection of outstanding sales.

3. Number of Days of Payables:
- The number of days CNX Resources takes to pay its suppliers has shown a significant increase from 71.80 days in March 2020 to 316.25 days in December 2024. A higher number of days of payables could indicate either liquidity issues or deliberate efforts to optimize cash flow by extending payment terms with suppliers.

In conclusion, CNX Resources Corp needs to closely manage its activity ratios, particularly inventory holding periods, collection of receivables, and payment terms with suppliers, to ensure operational efficiency and maintain healthy working capital management. Regular monitoring and strategic adjustments may be needed to improve overall operational performance and financial health.

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Long-term

The Fixed Asset Turnover ratio for CNX Resources Corp has shown some fluctuations over the periods analyzed. It decreased from 0.29 in March 2020 to 0.16 in September 2020 before showing some improvement and reaching 0.56 in September 2023. However, it then declined to 0.17 by December 2024.

On the other hand, the Total Asset Turnover ratio also exhibited variations during the same timeframe. It started at 0.24 in March 2020, decreased to 0.14 in September 2020, and then increased to 0.48 by September 2023 before dropping to 0.15 by December 2024.

Overall, the Fixed Asset Turnover ratio indicates how efficiently CNX Resources Corp is utilizing its fixed assets to generate revenue, while the Total Asset Turnover ratio shows the company's efficiency in generating sales from all its assets. The trend in these ratios suggests fluctuations in the company's asset utilization efficiency over the periods analyzed.