Duke Energy Corporation (DUK)

Short-term

Turnover ratios

Based on the provided data for Duke Energy Corporation's activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory. Duke Energy's inventory turnover has shown an improving trend over the years, from 3.79 in 2020 to 4.06 in 2021 and further to 4.41 in 2022. However, there was a significant decrease in 2023 to 3.57 before dropping sharply to 0.13 in 2024. This dramatic drop in 2024 may indicate issues with inventory management or significant changes in company operations.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company collects outstanding receivables. The data provided shows "—," indicating that the specific values for this ratio are not available. Without this information, it is challenging to assess Duke Energy's effectiveness in collecting receivables.

3. Payables Turnover:
- The payables turnover ratio indicates how quickly a company pays its suppliers. The data reveals "—," suggesting that the payables turnover ratio for Duke Energy is not available. This makes it difficult to evaluate how the company manages its payables.

4. Working Capital Turnover:
- The working capital turnover ratio assesses how effectively a company utilizes its working capital to generate revenue. The data shows "—," indicating that the working capital turnover ratio for Duke Energy is not provided. Without this information, it is hard to gauge how efficiently Duke Energy utilizes its working capital.

In conclusion, while Duke Energy's inventory turnover has shown fluctuations over the years, the lack of data for receivables, payables, and working capital turnover ratios limits a comprehensive evaluation of the company's overall activity efficiency and management of working capital. Further information on these ratios would provide a more complete assessment of Duke Energy's operational performance.

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Average number of days

Based on the provided data, we can analyze Duke Energy Corporation's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- The DOH measures how efficiently a company manages its inventory. A decreasing trend in DOH over time indicates that Duke Energy Corporation is selling its inventory more quickly.
- From December 31, 2020 (96.23 days) to December 31, 2024 (2,912.89 days), there is a significant increase in DOH. The sharp rise in 2024 may be a result of abnormal circumstances or a data reporting error that needs further investigation.
- Overall, Duke Energy Corporation appears to have a suboptimal inventory management during the period, which may lead to increased carrying costs and potential liquidity challenges.

2. Days of Sales Outstanding (DSO):
- DSO measures how quickly a company collects its accounts receivable. The absence of data for DSO suggests that the specific Days of Sales Outstanding ratio could not be calculated from the available information.
- Without DSO data, it is challenging to evaluate Duke Energy Corporation's efficiency in collecting revenue from credit sales. More detailed financial data is required to assess this aspect of the company's performance.

3. Number of Days of Payables:
- The number of days of payables indicates how long a company takes to pay its suppliers. The lack of data for this ratio implies that the specific Days of Payables ratio could not be calculated based on the provided information.
- Without information on the days of payables, it is difficult to gauge Duke Energy Corporation's payment practices and their impact on working capital management. Further data is needed to assess the company's ability to optimize its cash flow through effective payables management.

In conclusion, while the analysis of Duke Energy Corporation's activity ratios based on the provided data highlights issues with inventory management, the absence of information on Days of Sales Outstanding and Days of Payables limits a comprehensive assessment of the company's overall efficiency in managing its operating cycle. Additional financial data and context would be necessary to make more informed judgments about Duke Energy Corporation's operational performance.

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Long-term

The fixed asset turnover ratio for Duke Energy Corporation remained relatively stable at around 0.22 from December 31, 2020, to December 31, 2021. In December 31, 2022, there was a slight improvement to 0.26, indicating that the company generated $0.26 in revenue for every dollar invested in fixed assets. However, the data for December 31, 2023, and December 31, 2024, is not available, which limits a complete analysis of the trend in fixed asset turnover.

On the other hand, the total asset turnover ratio increased gradually over the same period from 0.14 in December 31, 2020, to 0.16 in December 31, 2024. This indicates that Duke Energy generated $0.16 in revenue for every dollar of total assets held. The increasing trend in total asset turnover suggests that the company has been effectively utilizing its assets to generate revenue over time.

Overall, while the fixed asset turnover ratio fluctuated slightly, the total asset turnover ratio showed a positive trend, indicating an improvement in the efficiency of asset utilization for revenue generation by Duke Energy Corporation.