CVR Energy Inc (CVI)

Short-term

Turnover ratios

Inventory turnover measures the efficiency of CVR Energy Inc in managing its inventory. The trend shows a slight decrease from 2019 to 2023, indicating a lower rate of inventory turnover over the years.

Receivables turnover reflects how well the company is collecting its accounts receivable. The data reveals a generally increasing trend from 2019 to 2023, suggesting improved efficiency in collecting receivables over time.

Payables turnover assesses how quickly the company is paying its suppliers. The metric fluctuates slightly over the years but remains relatively stable, indicating consistent payment practices.

Working capital turnover measures how effectively the company utilizes its working capital to generate sales. The ratio shows significant fluctuations, with a notable increase in 2022 before declining in 2023. This indicates varying efficiencies in utilizing working capital for generating revenues across the years.

Overall, analyzing these activity ratios provides insights into CVR Energy Inc's operational efficiency, inventory management, collections, supplier payment practices, and working capital utilization over the five-year period.

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Average number of days

Activity ratios such as Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days Payables are indicators of how efficiently CVR Energy Inc manages its inventory, collects its receivables, and pays its bills.

1. Days of Inventory on Hand (DOH):
- The trend in DOH shows an increasing number of days from 2019 to 2023, indicating that CVR Energy Inc is taking longer to sell its inventory or manage its production levels. The higher DOH suggests that the company may be facing challenges in efficiently managing its inventory turnover.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect payments from its customers. The decreasing trend in DSO from 2019 to 2023 indicates that CVR Energy Inc has been improving its collection efficiency. However, the increase in 2021 compared to the previous year suggests a slight deterioration in collecting receivables.

3. Number of Days of Payables:
- The increasing trend in the Number of Days of Payables from 2019 to 2023 implies that CVR Energy Inc is taking longer to pay its suppliers. This extended payment period may indicate a strategy to manage cash flow or negotiate better terms with suppliers.

In summary, CVR Energy Inc should focus on optimizing its inventory management to reduce DOH, continue to improve its receivables collection process to lower DSO, and carefully manage its payables to ensure a balance between maintaining good supplier relationships and optimizing cash flow.

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Long-term

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of CVR Energy Inc, the fixed asset turnover has been fluctuating over the past five years. It decreased from 2.72 in 2019 to 1.75 in 2020, then increased to 3.19 in 2021, further increased to 4.85 in 2022, and slightly dropped to 4.16 in 2023. This indicates that the company is effectively generating revenue from its fixed assets, with a notable improvement in asset utilization in 2022 compared to previous years.

On the other hand, the total asset turnover ratio measures how well a company is utilizing all its assets to generate revenue. CVR Energy Inc's total asset turnover ratio has also been varying over the past five years. It increased from 1.63 in 2019 to 0.99 in 2020, then increased to 1.85 in 2021, further increased to 2.65 in 2022, and slightly dropped to 1.96 in 2023. This shows that the company has been able to efficiently generate revenue relative to its total assets, with a significant improvement in 2022 compared to previous years.

Overall, CVR Energy Inc's long-term activity ratios suggest that the company has generally been improving its efficiency in utilizing both fixed and total assets to generate revenue over the past five years, with some fluctuations in performance. This indicates positive trends in asset utilization and operational efficiency within the company.