Dominion Energy Inc (D)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 3.00 | 3.97 | 2.36 | 3.61 | 3.40 |
| Receivables turnover | 4.10 | 3.13 | 4.17 | 3.93 | 4.07 |
| Payables turnover | 4.17 | 5.22 | 3.21 | 5.92 | 5.37 |
| Working capital turnover | 15.80 | — | — | — | — |
Based on the activity ratios of Dominion Energy Inc for the years 2019 to 2023, we can observe the following trends:
1. Inventory Turnover:
- Dominion Energy's inventory turnover fluctuated over the years, ranging from 2.05 in 2020 to 3.10 in 2022.
- The inventory turnover indicates the efficiency of the company in managing its inventory. A higher turnover implies better inventory management.
2. Receivables Turnover:
- Dominion Energy's receivables turnover was relatively stable, with a range of 5.12 in 2022 to 6.27 in 2019.
- The receivables turnover ratio reflects how quickly the company collects its outstanding receivables. A higher ratio indicates that the company efficiently collects its receivables.
3. Payables Turnover:
- The payables turnover ratio varied from 2.93 in 2022 to 4.64 in 2023.
- Payables turnover measures how quickly a company pays its suppliers. A lower ratio suggests that the company takes longer to pay its bills.
4. Working Capital Turnover:
- The data shows working capital turnover only for 2023, with a value of 15.80.
- The working capital turnover ratio reflects how efficiently a company utilizes its working capital to generate revenue. A higher ratio indicates better efficiency in utilizing working capital.
Overall, the analysis of Dominion Energy Inc's activity ratios suggests that the company has shown fluctuations in its efficiency in managing inventory, collecting receivables, and paying off its payables over the years. The limited availability of data for working capital turnover hinders a comprehensive analysis over multiple periods.
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 | 121.86 | 91.90 | 154.71 | 101.21 | 107.46 |
| Days of sales outstanding (DSO) | days | 88.99 | 116.72 | 87.49 | 92.90 | 89.75 |
| Number of days of payables | days | 87.61 | 69.94 | 113.54 | 61.64 | 68.03 |
Days of inventory on hand (DOH) measures how many days a company takes to sell its inventory. Dominion Energy Inc's DOH has fluctuated over the past five years, with a high of 177.63 days in 2020 and a low of 117.92 days in 2022. The significant decrease in 2022 suggests better inventory management efficiency.
Days of sales outstanding (DSO) indicates how long it takes for a company to collect its accounts receivable. Dominion Energy Inc's DSO has been relatively stable, ranging from 58.26 days in 2019 to 71.35 days in 2022. The lower DSO in 2019 indicates faster collection of receivables compared to the other years.
Number of days of payables shows how long a company takes to pay its suppliers. Dominion Energy Inc has improved its payables management over the years, with the number of days of payables decreasing from 124.46 days in 2022 to 78.64 days in 2023. This decrease suggests better liquidity management and potentially improved supplier relationships.
Overall, Dominion Energy Inc's activity ratios reflect changes in inventory, accounts receivable, and accounts payable management over the past five years, indicating improvements in efficiency and liquidity.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.24 | 0.27 | 0.23 | 0.24 | 0.25 |
| Total asset turnover | 0.13 | 0.13 | 0.14 | 0.15 | 0.14 |
The long-term activity ratios for Dominion Energy Inc indicate how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate sales, has been relatively consistent over the past five years, averaging around 0.24. This implies that for every dollar of fixed assets, the company is generating approximately $0.24 in sales.
On the other hand, the total asset turnover ratio, which indicates the efficiency of using all assets to generate sales, has shown a slight downward trend from 0.16 in 2019 to 0.13 in 2023. This suggests that the company's overall asset utilization in generating sales has decreased over the years.
In conclusion, Dominion Energy Inc may need to focus on improving its overall asset efficiency to boost revenue generation, considering the declining trend in total asset turnover despite the stable performance in fixed asset turnover. Additional analysis of the underlying factors affecting asset utilization and revenue generation would provide deeper insights into the company's operational efficiency and potential areas for improvement.