HF Sinclair Corp (DINO)

Short-term

Turnover ratios

The activity ratios of HF Sinclair Corp. provide insights into the efficiency of the company's operations in managing inventory, receivables, payables, and working capital over the past eight quarters.

1. Inventory Turnover: The inventory turnover ratio measures the number of times a company's inventory is sold and replaced during a period. HF Sinclair Corp. maintained a consistently high inventory turnover ratio, ranging from 8.28 to 9.56 over the past eight quarters. This indicates that the company efficiently manages its inventory levels and effectively sells its products.

2. Receivables Turnover: The receivables turnover ratio reflects how efficiently a company collects payments from customers. HF Sinclair Corp. showed a fluctuating trend in receivables turnover, ranging from 9.86 to 23.07 during the same period. The higher turnover ratios indicate that the company is collecting receivables more quickly, which is a positive sign for its cash flow management.

3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. HF Sinclair Corp. demonstrated a varying payables turnover ratio, ranging from 6.49 to 14.41 over the past eight quarters. A higher turnover ratio suggests that the company is paying its suppliers more promptly, while a lower ratio may indicate that it is stretching out its payables.

4. Working Capital Turnover: The working capital turnover ratio evaluates how efficiently a company uses its working capital to generate sales. HF Sinclair Corp. maintained a relatively stable working capital turnover ratio, varying from 7.95 to 11.13 over the same period. A higher turnover ratio suggests that the company effectively utilizes its working capital to support its operations and sales activities.

Overall, the activity ratios of HF Sinclair Corp. indicate that the company has been effectively managing its inventory, receivables, payables, and working capital to support its operational efficiency and financial performance. Regular monitoring of these ratios can provide valuable insights into the company's liquidity, efficiency, and overall financial health.

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Average number of days

The activity ratios of HF Sinclair Corp. provide insights into the efficiency of the company's operations in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
HF Sinclair Corp.'s average days of inventory on hand have been relatively stable over the past quarters, ranging from 38.18 days to 43.09 days. A lower DOH indicates that the company is selling its inventory quickly, which can improve cash flow and reduce holding costs. The company's DOH trending slightly upwards in recent quarters may suggest a need to assess inventory management practices to maintain optimal levels.

2. Days of Sales Outstanding (DSO):
The DSO trend for HF Sinclair Corp. shows fluctuation but generally declining from Q1 2022 to Q4 2023. Lower DSO values indicate that the company is collecting its accounts receivable more efficiently. The decreasing trend is a positive sign, indicating that the company is managing credit effectively and converting sales into cash promptly.

3. Number of Days of Payables:
HF Sinclair Corp.'s days of payables have varied throughout the quarters, with values ranging from 25.33 days to 56.27 days. A higher number of days of payables indicates that the company takes longer to pay its suppliers, potentially benefiting from favorable credit terms. However, excessively delaying payments could strain supplier relationships. The decreasing trend from Q1 2022 to Q4 2023 suggests an improvement in managing payables, possibly optimizing cash flow and working capital.

Overall, analyzing these activity ratios collectively can provide a comprehensive understanding of HF Sinclair Corp.'s operational efficiency and financial health in managing its inventory, receivables, and payables effectively.

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Long-term

HF Sinclair Corp.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insight into the company's efficiency in utilizing its assets to generate revenue.

Fixed asset turnover indicates the company's ability to generate sales using its fixed assets. The ratio has been showing a generally increasing trend over the quarters, from 3.26 in Q1 2022 to 5.76 in Q1 2023. This suggests that the company has been more efficient in generating revenue from its fixed assets over time, with a peak of 5.76 in Q1 2023.

Total asset turnover measures the efficiency of the company in generating sales using all its assets. HF Sinclair Corp.'s total asset turnover ratio has fluctuated over the quarters, ranging from 1.26 in Q1 2022 to 2.13 in Q1 2023. The ratio has shown an increasing trend overall, indicating that the company has been improving its efficiency in utilizing all its assets to generate revenue.

Overall, the upward trends in both fixed asset turnover and total asset turnover ratios suggest that HF Sinclair Corp. has been effectively utilizing its assets to drive sales and improve its operational efficiency over the quarters. This is a positive indicator of the company's long-term sustainability and profitability.