Everus Construction Group Inc (ECG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Inventory turnover | 59.29 | 65.77 | — |
| Receivables turnover | — | — | — |
| Payables turnover | — | — | — |
| Working capital turnover | 9.09 | 8.58 | — |
Based on the activity ratios of Everus Construction Group Inc for the years ended December 31, 2021, 2022, and 2023, we can observe the following trends:
1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently the company manages its inventory by indicating how many times the inventory is sold and replaced over a period.
- Everus Construction Group Inc's inventory turnover decreased from 65.77 in 2022 to 59.29 in 2023, indicating a slight decrease in the efficiency of managing inventory turnover during this period.
2. Receivables Turnover:
- The receivables turnover ratio reflects how effectively a company is collecting its accounts receivable during a specific period.
- Unfortunately, data for receivables turnover was not available for any of the years, preventing an assessment of the efficiency in collecting accounts receivable.
3. Payables Turnover:
- The payables turnover ratio shows how effectively a company is managing its accounts payable by measuring how quickly the company pays its suppliers.
- However, data for payables turnover was not provided for any of the years, limiting the analysis of the company's payables management efficiency.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales.
- Everus Construction Group Inc's working capital turnover increased from 8.58 in 2022 to 9.09 in 2023, indicating an improvement in the efficiency of utilizing working capital to generate sales during this period.
In conclusion, while there was a decline in the inventory turnover ratio, the working capital turnover ratio showed improvement. However, the lack of data for receivables and payables turnover ratios hinders a comprehensive analysis of Everus Construction Group Inc's overall activity efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 6.16 | 5.55 | — |
| Days of sales outstanding (DSO) | days | — | — | — |
| Number of days of payables | days | — | — | — |
Based on the data provided for Everus Construction Group Inc, we can analyze the activity ratios as follows:
1. Days of Inventory on Hand (DOH):
- In 2023, Everus Construction Group Inc had an average of 6.16 days of inventory on hand.
- This shows that the company is able to turn over its inventory approximately every 6 days, indicating efficient inventory management.
- The increase in the DOH from 2022 to 2023 may suggest a build-up of inventory, which could tie up working capital.
2. Days of Sales Outstanding (DSO):
- Unfortunately, data for Days of Sales Outstanding is not provided for any of the years, making it challenging to assess the efficiency of the company in collecting its accounts receivable.
- DSO would have indicated how many days, on average, it takes for Everus Construction Group Inc to collect payments from its customers.
3. Number of Days of Payables:
- Similarly, information on the Number of Days of Payables is not provided for any of the years, making it difficult to evaluate the company’s payment practices.
- This ratio would have shown how long, on average, Everus Construction Group Inc takes to pay its suppliers.
In conclusion, while the Days of Inventory on Hand ratio suggests efficient inventory management by Everus Construction Group Inc, the lack of data for Days of Sales Outstanding and Number of Days of Payables hinders a comprehensive assessment of the company's overall activity ratios and working capital management.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|
| Fixed asset turnover | — | — | — |
| Total asset turnover | 2.57 | 2.38 | — |
The fixed asset turnover ratio for Everus Construction Group Inc is not available for the years 2021, 2022, and 2023. This ratio provides insights into how efficiently a company generates revenue from its investment in fixed assets.
In terms of total asset turnover, the company's performance has shown improvement over the last three years. The total asset turnover increased from 2.38 in 2022 to 2.57 in 2023, indicating that the company is generating more revenue relative to its total assets. This suggests that Everus Construction Group Inc has been more effective in utilizing its assets to generate sales during the most recent year.
Overall, based on the total asset turnover ratio, Everus Construction Group Inc's operational efficiency has improved, showcasing better utilization of its assets to generate revenue over the years.