CoreCivic Inc (CXW)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 13.20 | 15.61 | 1.11 | 10.25 |
| Receivables turnover | 6.08 | 5.91 | 6.59 | 7.12 | 7.05 |
| Payables turnover | 3.60 | 2.80 | 3.03 | 3.85 | 3.34 |
| Working capital turnover | 10.69 | 29.33 | 6.50 | 4.72 | 29.75 |
Based on the provided activity ratios for CoreCivic Inc, we can derive insights into the company's operational efficiency and effectiveness in managing its resources.
1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects payments from its customers. CoreCivic's receivables turnover has been relatively stable over the past five years, ranging from 5.91 to 7.12 times. This indicates that the company is able to convert its accounts receivable into cash approximately 6 to 7 times a year. A higher turnover ratio suggests faster collections, which is generally favorable as it reduces the risk of bad debts and improves cash flow.
2. Payables Turnover:
- The payables turnover ratio, representing how quickly a company pays its suppliers, is noted as zero for all years. A zero value could indicate that CoreCivic may be managing its payables in a way that payment is not required within the accounting period under review. This could be due to various factors such as extended credit terms negotiated with suppliers or operating in an industry where payables turnover is not as significant.
3. Working Capital Turnover:
- The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales. CoreCivic's working capital turnover has fluctuated significantly over the years, ranging from 4.72 to 29.75 times. A higher turnover ratio suggests that the company is effectively using its resources to drive sales. In this case, the company's working capital turnover has varied, indicating changes in how well CoreCivic is utilizing its working capital.
Overall, based on the activity ratios provided, CoreCivic Inc seems to have a solid receivables turnover, reflecting efficient collection practices. The lack of information on payables turnover limits insight into the company's payment practices with suppliers. The fluctuating working capital turnover suggests varying efficiency in utilizing working capital to generate sales, indicating possible shifts in operational effectiveness over the years.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 27.66 | 23.38 | 329.27 | 35.62 |
| Days of sales outstanding (DSO) | days | 60.08 | 61.80 | 55.42 | 51.28 | 51.74 |
| Number of days of payables | days | 101.47 | 130.16 | 120.54 | 94.75 | 109.17 |
Days Sales Outstanding (DSO) measures how long it takes for a company to collect revenue after a sale is made. CoreCivic Inc's DSO has increased over the past five years, from 51.74 days in 2019 to 60.08 days in 2023. This indicates that the company is taking longer to collect its receivables, which could be a concern as it may affect cash flow and liquidity.
Days of Inventory on Hand (DOH) measures how long it takes for a company to sell its inventory. Unfortunately, the data for CoreCivic Inc's DOH is not provided in the table. However, it is important to note that a high DOH could indicate inefficient inventory management or potential obsolescence.
The Number of Days of Payables is not provided in the table, making it difficult to assess how long CoreCivic Inc takes to pay its suppliers. This information is crucial in understanding the company's working capital management and relationships with its vendors.
Overall, based on the available DSO data, CoreCivic Inc's collection period has been increasing over the years, which could signal potential liquidity challenges if not managed effectively. Further analysis incorporating DOH and payables turnover would provide a more comprehensive view of the company's operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.90 | 0.85 | 0.82 | 0.81 | 0.73 |
| Total asset turnover | 0.61 | 0.57 | 0.53 | 0.51 | 0.52 |
The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. CoreCivic Inc's fixed asset turnover has been gradually improving over the past five years, increasing from 0.73 in 2019 to 0.90 in 2023. This indicates that the company is generating more revenue per dollar of fixed assets, reflecting increased efficiency in utilizing these assets.
On the other hand, the total asset turnover ratio reflects the company's ability to generate sales from all its assets. CoreCivic Inc's total asset turnover has also shown an upward trend over the years, rising from 0.52 in 2019 to 0.61 in 2023. This suggests that the company is becoming more efficient in using all its assets to generate revenue.
Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates that CoreCivic Inc is improving its asset utilization and generating more revenue relative to its asset base. This efficiency in asset utilization is a positive sign for the company's long-term operational performance.