CVR Energy Inc (CVI)

Short-term

Turnover ratios

CVR Energy Inc's activity ratios provide insight into the efficiency of its operations.

1. Inventory Turnover:
- CVR Energy Inc's inventory turnover has generally been increasing over the years, from 13.82 in 2020 to 14.75 in 2024. This indicates that the company is managing its inventory more effectively, with a higher rate of inventory turnover, which is positive for cash flow and reducing holding costs.

2. Receivables Turnover:
- The receivables turnover ratio for CVR Energy Inc has shown a significant upward trend, climbing from 17.70 in 2020 to 32.33 in 2023 before slightly decreasing to 24.87 in 2024. This suggests that the company is collecting its accounts receivable at a faster pace, reflecting strong credit control and efficient collection processes.

3. Payables Turnover:
- CVR Energy Inc's payables turnover has been fluctuating over the years, ranging from 13.76 in 2024 to 19.65 in 2022. The variability in this ratio may indicate changes in the company's payment practices and relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio for CVR Energy Inc has shown significant fluctuations, with a notable spike in 2022 to 70.75 before decreasing to 10.48 in 2024. This ratio measures how effectively the company is utilizing its working capital to generate sales. The significant variations in this ratio may signal changes in the company's working capital management strategies or operating efficiency.

In conclusion, CVR Energy Inc's activity ratios reflect varying levels of efficiency in managing its inventory, receivables, payables, and working capital over the years. A holistic analysis of these ratios can provide valuable insights into the company's operational performance and effectiveness in managing its resources.

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Average number of days

The activity ratios of CVR Energy Inc show varying trends over the years:

1. Days of Inventory on Hand (DOH):
- The company's DOH decreased from 26.41 days in December 2020 to 23.32 days in December 2022, indicating more efficient inventory management.
- However, it increased to 27.65 days by December 2023 before dropping to 24.74 days by December 2024, showing some volatility in managing inventory levels.

2. Days of Sales Outstanding (DSO):
- CVR Energy Inc's DSO reduced from 20.62 days in December 2020 to 12.73 days in December 2022, indicating faster collection of receivables.
- There was a slight increase in DSO to 14.68 days by December 2024, but overall, the company's efficiency in collecting sales improved over the years.

3. Number of Days of Payables:
- The days of payables decreased from 24.99 days in December 2020 to 18.58 days in December 2022, suggesting the company was taking longer to pay its suppliers.
- However, this trend reversed as the days of payables increased to 26.52 days by December 2024, indicating that CVR Energy Inc may be taking longer to settle its payables.

Overall, the analysis of the activity ratios suggests that CVR Energy Inc improved its inventory and sales collection efficiency in the initial years but experienced some fluctuations in managing payables in later years.

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Long-term

CVR Energy Inc's long-term activity ratios indicate the efficiency of the company in managing its assets over the years.

1. Fixed Asset Turnover: This ratio shows how efficiently the company is utilizing its fixed assets to generate sales. CVR Energy Inc's fixed asset turnover has been improving steadily from 1.75 in 2020 to 4.16 in 2023, with a slight dip to 3.50 in 2024. The increase in the ratio indicates that the company's fixed assets are generating more sales over the years, reaching a peak in 2023 before a slight decline in 2024. This trend suggests that CVR Energy Inc has been able to make better use of its fixed assets to drive revenue growth.

2. Total Asset Turnover: This ratio measures how effectively the company is using all its assets to generate sales. CVR Energy Inc's total asset turnover has shown a significant improvement from 0.99 in 2020 to 2.65 in 2022. However, there was a slight decrease to 1.79 in 2024. The upward trend in the total asset turnover ratio implies that the company has been more efficient in generating revenue relative to its total assets in the earlier years, although there was a decrease in 2024.

Overall, the increase in both the fixed asset turnover and total asset turnover ratios until 2023 indicates that CVR Energy Inc has been successful in utilizing its assets more efficiently to generate revenue. However, the slight decline in these ratios in 2024 may warrant further analysis to understand the factors contributing to this change and assess the company's asset utilization strategy going forward.