Duke Energy Corporation (DUK)

Short-term

Turnover ratios

The activity ratios of Duke Energy Corp. provide insight into the efficiency of the company's operations in managing its resources.

1. Inventory turnover: Duke Energy Corp.'s inventory turnover ratio has been relatively stable around 2.5 on average over the past eight quarters. This indicates that the company efficiently manages its inventory levels, with a moderate turnover rate. A consistent trend suggests that Duke Energy is effectively controlling its inventory levels and avoiding excess buildup of inventory.

2. Receivables turnover: Duke Energy Corp.'s receivables turnover ratio has shown a slight increase over the past two quarters. The ratio averages around 7.0, indicating that the company collects its accounts receivable approximately seven times a year. A higher receivables turnover ratio signifies that Duke Energy is efficient in collecting payments from customers, which indicates strong credit management practices.

3. Payables turnover: Duke Energy Corp.'s payables turnover ratio has exhibited some fluctuation over the past eight quarters, averaging around 2.5. The ratio indicates how quickly the company pays its suppliers. A higher payables turnover ratio suggests that Duke Energy efficiently manages its payments to suppliers, potentially benefiting from favorable credit terms.

4. Working capital turnover: There is no data provided for Duke Energy Corp.'s working capital turnover, making it challenging to assess the efficiency with which the company utilizes its working capital.

Overall, based on the activity ratios analyzed, Duke Energy Corp. appears to be efficiently managing its inventory, accounts receivable, and accounts payable to support its operations. Monitoring these ratios over time can help evaluate the company's operational efficiency and effectiveness in managing working capital.

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Average number of days

Activity ratios provide insights into how efficient a company is managing its resources. Let's analyze Duke Energy Corp.'s activity ratios based on the provided data:

1. Days of Inventory on Hand (DOH): Duke Energy Corp.'s DOH has shown an increasing trend over the last eight quarters, starting at 130.06 days in Q4 2022 and peaking at 161.85 days in Q4 2023. This indicates that Duke Energy is holding inventory for a longer period, which may tie up capital and could suggest potential inefficiencies in inventory management.

2. Days of Sales Outstanding (DSO): The DSO for Duke Energy Corp. has varied slightly over the quarters, ranging from 46.33 days in Q1 2023 to 56.02 days in Q4 2022. Lower DSO values generally indicate that the company is collecting revenue quickly, which is a positive sign for cash flow management.

3. Number of Days of Payables: Duke Energy Corp.'s days of payables have fluctuated over the quarters, with a notable decrease from 172.52 days in Q4 2022 to 112.42 days in Q1 2023. A lower number of days of payables means the company is taking less time to pay its suppliers, which could indicate efficient cash management or improved supplier relationships.

Overall, Duke Energy Corp. should focus on optimizing its inventory management to reduce the days of inventory on hand and continue to monitor its DSO and payables to ensure a balance between cash flow efficiency and supplier relationships.

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Long-term

Duke Energy Corp.'s long-term activity ratios, specifically the fixed asset turnover and total asset turnover ratios, have remained relatively stable over the past eight quarters. The fixed asset turnover ratio has consistently ranged between 0.23 to 0.26, indicating that the company generates $0.23 to $0.26 in sales for every dollar invested in fixed assets. This suggests that Duke Energy is efficiently utilizing its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has consistently been around 0.16, showing that Duke Energy generates $0.16 in sales for every dollar of total assets. This ratio indicates that the company efficiently utilizes all its assets to generate revenue and is consistent over time.

Overall, both these ratios suggest that Duke Energy Corp. is effectively managing and utilizing its assets to generate sales, which is a positive indication of the company's operational efficiency.