Chesapeake Utilities Corporation (CPK)

Short-term

Turnover ratios

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

1. Inventory Turnover:
- The inventory turnover ratio indicates how efficiently the company manages its inventory. A higher ratio suggests that the company is selling its inventory more frequently.
- Chesapeake Utilities Corporation's inventory turnover has fluctuated over the years, starting at 25.83 in 2020 and decreasing to 14.21 in 2023 before increasing again to 16.82 in 2024.
- The decrease in inventory turnover from 2020 to 2023 could indicate potential issues with managing or selling inventory efficiently. However, the improvement in 2024 is a positive sign.

2. Receivables Turnover:
- In the provided data, receivables turnover information is marked as "—", indicating that specific data for this ratio is not available for the years mentioned.
- Receivables turnover ratio reflects how efficiently a company collects its outstanding accounts receivable. Without this data, it is challenging to assess the performance in this area.

3. Payables Turnover:
- Similar to receivables turnover, payables turnover data is marked as "—", implying that the specific information for this ratio in the given periods is not available.
- The payables turnover ratio typically looks at how efficiently a company manages its accounts payable by paying suppliers.

4. Working Capital Turnover:
- Working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales.
- In the data provided, the working capital turnover is also marked as "—", indicating that details for this ratio are not accessible.
- An absence of data for this ratio limits the ability to assess how well the company is utilizing its working capital to support its operations.

Overall, the information available for Chesapeake Utilities Corporation's activity ratios suggests fluctuations in inventory turnover, while details on receivables turnover, payables turnover, and working capital turnover are not provided, making it challenging to perform a comprehensive analysis of the company's efficiency in managing its operating assets and liabilities.

---

Average number of days

Chesapeake Utilities Corporation's Days of Inventory on Hand (DOH) has shown an increasing trend from 14.13 days on December 31, 2020, to 21.70 days on December 31, 2024. This indicates that the company is holding inventory for a longer period before it is sold.

The Days of Sales Outstanding (DSO) and Number of Days of Payables data are not provided, which limits the comprehensive analysis of the activity ratios concerning accounts receivable and accounts payable management. It is important to note that DSO measures how quickly a company collects payments from its customers, and the Number of Days of Payables assesses how long it takes the company to pay its suppliers.

In conclusion, while the increase in Days of Inventory on Hand may suggest potential inventory management issues, a holistic evaluation of the company's liquidity and efficiency requires a more complete set of activity ratio data.

---

Long-term

Chesapeake Utilities Corporation's Fixed Asset Turnover ratio has shown a positive trend over the years, increasing from 0.30 in 2020 to 0.38 in 2022. This indicates that the company is generating more revenues relative to its investment in fixed assets, reflecting improved efficiency in utilizing its long-term assets to generate sales.

In terms of Total Asset Turnover, the company's performance fluctuated with a peak at 0.31 in 2022. However, there was a slight decrease to 0.22 by the end of 2024. This ratio reveals how efficiently Chesapeake Utilities Corporation is using all its assets to generate revenue.

Overall, the increase in Fixed Asset Turnover ratio suggests that the company's operational efficiency related to its long-term assets has been improving, while the variation in Total Asset Turnover ratio indicates potential fluctuations in managing all types of assets to drive revenue generation. Further analysis and comparison with industry benchmarks would provide a more comprehensive understanding of the company's long-term activity efficiency.