CVR Energy Inc (CVI)

Short-term

Turnover ratios

Based on the provided data for CVR Energy Inc, we can analyze the activity ratios as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory. CVR Energy Inc's inventory turnover has shown fluctuation over the periods, ranging from a high of 26.58 in March 2020 to a low of 11.08 in March 2022. Overall, the trend indicates some variability in managing inventory levels.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently the company collects its receivables. CVR Energy Inc's receivables turnover ratio has also varied, with a peak of 39.53 in March 2020 and a low of 17.70 in December 2020. The company shows some improvement in collecting receivables in recent quarters.

3. Payables Turnover:
- The payables turnover ratio evaluates how quickly the company pays its suppliers. CVR Energy Inc's payables turnover ratio fluctuated across different periods, with a maximum of 20.20 in June 2020 and a minimum of 10.67 in March 2021. The company's payment cycle to suppliers has varied but has generally remained in line with industry norms.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively the company utilizes its working capital to generate sales. CVR Energy Inc's working capital turnover ratio has shown significant volatility, with values ranging from 5.29 to 81.33. The high variations indicate fluctuations in how efficiently the company is utilizing its working capital to support its business operations.

Overall, CVR Energy Inc's activity ratios suggest mixed performance in managing its assets and operations efficiently. It is essential for the company to focus on optimizing inventory levels, improving receivables collection, managing payables effectively, and utilizing working capital efficiently to enhance its operational performance and profitability.

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Average number of days

CVR Energy Inc's activity ratios provide insights into the company's efficiency in managing its inventory, collecting receivables, and paying off payables.

1. Days of Inventory on Hand (DOH): This ratio indicates how many days on average it takes for CVR Energy Inc to sell its inventory. The trend in DOH shows fluctuations over the period, ranging from around 13 to 33 days. A lower DOH is generally preferred as it signifies faster inventory turnover, but a sudden increase in DOH could suggest potential issues with sales or inventory management.

2. Days of Sales Outstanding (DSO): DSO reflects the average number of days it takes for CVR Energy Inc to collect payment from its customers. The DSO trend also varies, showing a range of approximately 9 to 20 days. A lower DSO is indicative of swift collections and effective credit management.

3. Number of Days of Payables: This ratio represents the average number of days CVR Energy Inc takes to pay its suppliers. The number of days of payables demonstrate a fluctuating pattern, varying from about 18 to 34 days. A longer period indicates that the company is taking more time to settle its bills, which could imply improved cash flow management but may also strain supplier relationships if payments are delayed excessively.

Overall, monitoring these activity ratios helps assess CVR Energy Inc's operational efficiency, inventory control, collection practices, and payment management, which are crucial aspects of its financial health and performance evaluation.

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Long-term

The fixed asset turnover ratio of CVR Energy Inc has shown a positive trend over the past few years, increasing steadily from 2.72 in December 2019 to 4.56 in September 2022, indicating that the company is generating more sales relative to its investment in fixed assets. However, there was a slight decline in the ratio to 3.89 by September 2024.

On the other hand, the total asset turnover ratio reflects how efficiently the company is utilizing all of its assets to generate revenue. The total asset turnover ratio of CVR Energy Inc has also shown an upward trend, reaching a peak of 2.65 in December 2022, before experiencing some fluctuations thereafter. It stood at 1.84 by December 2024.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios suggests that CVR Energy Inc has been effectively using its assets to drive sales growth, with a more significant impact seen in the fixed asset turnover ratio. However, the slight fluctuations in recent periods may warrant further investigation into the company's asset management strategies to ensure sustainable efficiency in the long term.