DTE Energy Company (DTE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 0.90 | 0.75 | 0.90 | 0.99 | 0.99 | 0.89 | 1.05 | 1.21 | 1.05 | 0.89 | 1.13 | 1.37 | 1.18 | 1.18 | 22.87 | — | 9.42 | 1.07 | 1.12 | 1.26 |
| Receivables turnover | 0.22 | 0.27 | 0.22 | 0.20 | 0.25 | 3.05 | 6.64 | 8.73 | 8.81 | 9.80 | 8.28 | 8.92 | 8.40 | 8.28 | 7.95 | 7.68 | 6.80 | 7.72 | 6.80 | 6.99 |
| Payables turnover | 0.81 | 0.81 | 0.80 | 0.95 | 0.77 | 0.87 | 0.93 | 0.90 | 0.62 | 0.58 | 0.55 | 0.76 | 0.72 | 0.79 | 0.90 | 1.05 | 1.01 | 0.90 | 0.86 | 0.87 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | 229.67 | 5.10 | 7.26 | 15.09 | 29.79 | — | — |
DTE Energy Company's Inventory Turnover ratio fluctuated over the years, with a significant spike in June 2021 and a decrease in September 2022. This ratio measures how efficiently the company manages its inventory, with a higher ratio indicating better efficiency. The company's Receivables Turnover ratio also varied, reaching a peak in September 2022 before dropping significantly in December 2023. This ratio reflects how quickly the company collects its accounts receivable, with a higher ratio suggesting better collections.
The Payables Turnover ratio for DTE Energy Company showed inconsistency over the years, with fluctuations in the company's payment practices. A higher ratio typically indicates that the company is paying its suppliers more quickly.
The Working Capital Turnover ratio provides insights into how effectively the company is utilizing its working capital to generate revenue. The data indicates that the company had significant fluctuations in this ratio, with a notable increase in September 2021, highlighting a period of strong performance in utilizing its working capital.
Overall, analyzing these activity ratios can offer valuable insights into DTE Energy Company's operational efficiency and management of its assets and liabilities over the years. Further analysis and comparison to industry benchmarks can provide a clearer picture of the company's performance in these areas.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 406.46 | 484.46 | 406.95 | 368.16 | 368.85 | 409.24 | 349.00 | 302.66 | 348.36 | 409.99 | 323.06 | 266.89 | 309.15 | 308.38 | 15.96 | — | 38.75 | 341.93 | 325.97 | 288.98 |
| Days of sales outstanding (DSO) | days | 1,638.46 | 1,369.17 | 1,629.46 | 1,847.88 | 1,475.69 | 119.73 | 55.00 | 41.82 | 41.42 | 37.25 | 44.10 | 40.91 | 43.46 | 44.08 | 45.88 | 47.55 | 53.71 | 47.27 | 53.68 | 52.22 |
| Number of days of payables | days | 452.82 | 449.28 | 456.95 | 385.36 | 476.28 | 418.46 | 391.04 | 407.43 | 593.17 | 633.37 | 659.34 | 483.25 | 509.49 | 460.04 | 406.98 | 348.23 | 362.10 | 404.44 | 425.63 | 420.18 |
Based on the provided data, we can analyze the activity ratios of DTE Energy Company as follows:
1. Days of Inventory on Hand (DOH):
- The Days of Inventory on Hand fluctuated over the periods, ranging from a low of 15.96 days to a high of 484.46 days. This ratio indicates how many days, on average, inventory is held before being sold.
- The overall trend shows variability in managing inventory levels, with a significant increase towards the end of the reporting periods.
2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding varied considerably, from 37.25 days to as high as 1,847.88 days, indicating an erratic collection period for accounts receivable.
- The DSO ratio trend is irregular, with some periods showing efficient collection practices but also significant delays in others, especially towards the end of the data range.
3. Number of Days of Payables:
- The Number of Days of Payables ranged from as low as 348.23 days to as high as 659.34 days, reflecting the average number of days the company takes to pay its suppliers.
- The trend in this ratio is also inconsistent, displaying fluctuations in the payment period over time, with periods of both shorter and longer payment durations observed.
In conclusion, the activity ratios of DTE Energy Company highlight fluctuations and irregularities in inventory management, accounts receivable collection, and accounts payable payment practices over the analyzed periods. It is important for the company to assess and improve these aspects of its operations to maintain efficiency in working capital management and overall financial health.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.17 | 0.33 | 0.51 | 0.67 | 0.69 | 0.64 | 0.59 | 0.57 | 0.54 | 0.47 | 0.46 | 0.50 | 0.44 | 0.44 | 0.46 |
| Total asset turnover | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.11 | 0.23 | 0.35 | 0.45 | 0.46 | 0.43 | 0.40 | 0.39 | 0.36 | 0.27 | 0.28 | 0.27 | 0.27 | 0.27 | 0.28 |
The Fixed Asset Turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. In the case of DTE Energy Company, the Fixed Asset Turnover ratio has fluctuated over the past few years, ranging from 0.01 to 0.69.
The ratio started at a relatively low level of 0.46 in March 2020, decreased to 0.01 by December 2024, and experienced high points in September 2021 and December 2022. The significant decline in the ratio from March 2024 to December 2024 indicates a potential decrease in the company's ability to generate revenue from its fixed assets efficiently.
On the other hand, the Total Asset Turnover ratio reflects how well a company is using its total assets to generate sales. For DTE Energy Company, this ratio also saw fluctuations, with values ranging from 0.01 to 0.46 over the same period.
The company's Total Asset Turnover ratio started at 0.28 in March 2020, peaked at 0.46 in September 2022, and then dropped to 0.01 by December 2024. The declining trend in this ratio suggests a potential inefficiency in utilizing total assets to generate sales over the years.
Overall, the analysis of DTE Energy Company's long-term activity ratios indicates varying levels of efficiency in using fixed and total assets to generate revenue. The fluctuations suggest the need for further investigation into the company's asset management strategies to improve operational efficiency and profitability.