DT Midstream Inc (DTM)

Short-term

Turnover ratios

Based on the provided data, the activity ratios of DT Midstream Inc can be analyzed as follows:

1. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently the company is collecting payments from its customers.
- The trend shows a fluctuation in receivables turnover over the quarters, ranging from 5.46 to 7.58.
- A higher turnover ratio suggests a shorter time to collect receivables, which may indicate effective credit management or timely payments from customers.

2. Payables Turnover:
- The data indicates that the payables turnover ratio is consistently at 0.00 across all quarters.
- This implies that the company is not making payments to its suppliers during these periods or that the information may not be available.

3. Working Capital Turnover:
- Working capital turnover measures how efficiently the company is utilizing its working capital to generate revenue.
- The ratio is not available for some quarters but shows a decreasing trend from Q2 2022 (3.38) to Q3 2022 (2.62).
- A declining working capital turnover ratio may indicate inefficiencies in managing working capital, including inventory, accounts receivable, and accounts payable.

In conclusion, DT Midstream Inc should closely monitor its activity ratios, particularly receivables turnover and working capital turnover, to ensure efficient operations and optimize cash flow. The consistency of payables turnover at 0.00 warrants further investigation to understand the company's payment practices and relationships with suppliers.

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Average number of days

Based on the data provided for DT Midstream Inc's activity ratios, it can be observed that:

1. Days of Inventory on Hand: Unfortunately, there is missing data for this ratio across all the quarters, which hinders a year-on-year comparison. This ratio is typically used to assess how efficiently inventory is managed by the company in turning its inventory into sales. Without the data, it is challenging to evaluate the inventory turnover efficiency of the company.

2. Days of Sales Outstanding (DSO): The DSO indicates the average number of days it takes for the company to collect its accounts receivable. From Q1 2022 to Q4 2023, there has been a downward trend in the DSO, indicating an improvement in the company's ability to collect payments from customers more promptly. This trend suggests better liquidity and cash flow management.

3. Number of Days of Payables: Unfortunately, the data for the number of days of payables is also missing for all quarters. This ratio usually reflects how long it takes a company to pay its suppliers, and the absence of this data limits the assessment of DT Midstream Inc's payment practices and liquidity management in relation to its suppliers.

In conclusion, the DSO trend of DT Midstream Inc shows an improvement in collecting payments from customers promptly. However, the missing data for the Days of Inventory on Hand and Number of Days of Payables ratios restricts a comprehensive assessment of the company's overall efficiency in managing its working capital and operating cycle.

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Long-term

The fixed asset turnover ratio for DT Midstream Inc has been relatively stable around 0.21 to 0.25 over the past eight quarters. This indicates that the company generates revenues efficiently from its investment in fixed assets such as property, plant, and equipment.

On the other hand, the total asset turnover ratio has shown a consistent pattern around 0.10 to 0.11 during the same period. This suggests that the company is generating lower revenues in relation to its total assets compared to its fixed assets alone.

Overall, the stable trend in fixed asset turnover indicates that DT Midstream Inc is effectively utilizing its fixed assets to generate sales. However, the lower total asset turnover ratio may indicate that there is room for improvement in the company's overall asset utilization efficiency. Further analysis and comparison with industry benchmarks would provide more insights into the company's long-term activity performance.