DT Midstream Inc (DTM)

Short-term

Turnover ratios

The activity ratios of DT Midstream Inc provide insights into how efficiently the company manages its operations and assets.

1. Receivables Turnover:
- The receivables turnover ratio has shown a consistent trend of improvement over the past three years, increasing from 1.88 in 2020 to 5.46 in 2023.
- This indicates that the company is collecting its accounts receivables at a faster pace, which is a positive sign of efficient credit management and liquidity.

2. Payables Turnover:
- The payables turnover ratio is consistently reported as 0.00 across the years, suggesting that the company may not have a significant level of payables or may not be utilizing trade credit effectively.

3. Inventory Turnover:
- The inventory turnover ratio data is not provided in the table, possibly indicating that the company has minimal inventory levels or that this specific ratio was not a focus in the financial reporting.

4. Working Capital Turnover:
- In 2021, the working capital turnover ratio was reported at 4.59, showing how effectively the company is using its working capital to generate sales.
- However, data for this ratio is missing for the other years, making it challenging to assess the trend over time.

Overall, while the receivables turnover ratio indicates efficiency in collecting receivables, the lack of data on inventory turnover and payables turnover limits a comprehensive analysis of the company's overall activity and liquidity management.

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Average number of days

Based on the provided data, DT Midstream Inc's days of sales outstanding (DSO) have shown a decreasing trend over the past four years, indicating that the company has been more efficient in collecting payments from its customers. In specific terms, the DSO decreased from 193.63 days in 2020 to 66.90 days in 2023.

On the other hand, the days of inventory on hand and the number of days of payables data are missing, so a comprehensive analysis of the company's activity ratios, including inventory turnover and accounts payable turnover, cannot be conducted at this time.

Overall, the improvement in DSO reflects positively on DT Midstream Inc's ability to manage its accounts receivable efficiently, potentially enhancing cash flow and liquidity positions. However, a complete evaluation of the company's working capital management would require additional information on inventory and payables turnover ratios.

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Long-term

The long-term activity ratios of DT Midstream Inc, such as the fixed asset turnover and total asset turnover, provide insights into the company's efficiency in generating revenues relative to its investment in fixed assets and total assets over the years.

The fixed asset turnover ratio has been fluctuating within a relatively narrow range between 0.21 and 0.24 over the four-year period. This indicates that for each dollar invested in fixed assets, the company is generating between $0.21 and $0.24 in revenue. While the slight decrease in 2023 compared to 2022 may suggest a potential decline in the efficiency of utilizing fixed assets to generate sales, the ratio has remained stable overall.

In terms of total asset turnover, the company has maintained a consistent ratio of around 0.10 over the period under review. This ratio signifies that for every dollar invested in total assets, DT Midstream Inc is generating approximately $0.10 in sales revenue. The stability in this ratio suggests that the company has not significantly altered its efficiency in utilizing its total assets to generate revenue.

Overall, the long-term activity ratios of DT Midstream Inc indicate that the company has been relatively stable in terms of its efficiency in generating sales revenue from both fixed assets and total assets over the years. However, monitoring any potential fluctuations in these ratios is crucial to assess any changes in the company's operational efficiency and asset utilization.