Everus Construction Group Inc (ECG)

Short-term

Turnover ratios

Everus Construction Group Inc's inventory turnover has displayed a declining trend over the years, decreasing from 65.77 in 2022 to 57.38 in 2024. This suggests that the company may be holding onto its inventory for a longer period, which could potentially tie up working capital and increase carrying costs.

Receivables turnover data is unavailable for all years, indicating a lack of information on how efficiently the company collects payments from its customers. Without this ratio, it is challenging to assess the effectiveness of the company's credit and collection policies.

Similarly, payables turnover data is also missing for all years, making it difficult to evaluate how quickly Everus Construction Group settles its obligations with suppliers and creditors. This ratio provides insights into the company's payment practices and liquidity management.

The working capital turnover, which measures how efficiently the company generates revenue relative to its working capital, has fluctuated over the years, peaking at 9.09 in 2023. A lower working capital turnover in 2024 compared to the previous year may indicate a decrease in revenue generation efficiency relative to working capital employed.

Overall, while the inventory turnover and working capital turnover ratios provide some insights into Everus Construction Group Inc's operational efficiency, the absence of data on receivables and payables turnover limits a comprehensive analysis of the company's activity ratios.

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Average number of days

Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate revenue.

1. Days of inventory on hand (DOH) measures how many days, on average, it takes for a company to sell its inventory. In the case of Everus Construction Group Inc, the DOH has increased from 5.55 days in 2022 to 6.36 days in 2024. This suggests that the company may be experiencing slower inventory turnover, potentially indicating overstocking or challenges in selling inventory efficiently.

2. Days of sales outstanding (DSO) measures the average number of days it takes for a company to collect payment from its customers. The data provided shows that Everus Construction Group Inc did not have any information available for DSO in the years provided. This lack of data hinders the ability to assess the company's effectiveness in managing its accounts receivable.

3. Number of days of payables represents the average number of days a company takes to pay its suppliers. Similar to DSO, there is no information available for Everus Construction Group Inc's number of days of payables. Without this data, it is challenging to evaluate the company's payment practices and relationships with suppliers.

Overall, based on the limited data provided, Everus Construction Group Inc may need to focus on improving its inventory management to enhance efficiency and potentially explore ways to collect receivables faster and manage payables effectively to strengthen its working capital management.

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Long-term

Based on the provided data for Everus Construction Group Inc, we can analyze the long-term activity ratios as follows:

1. Fixed Asset Turnover:
Fixed asset turnover is not available for the years ending December 31, 2021, 2022, 2023, and 2024. This may indicate that the company's fixed assets were not efficiently utilized to generate sales during these periods. Without the specific values for fixed asset turnover, it is challenging to assess the effectiveness of the company's utilization of its fixed assets in generating revenue.

2. Total Asset Turnover:
The total asset turnover ratio provides insight into how efficiently the company utilizes its total assets to generate sales. The data shows that the total asset turnover ratio was 2.38 for the year ending December 31, 2022, 2.57 for December 31, 2023, and 2.21 for December 31, 2024. This indicates that, on average, for every dollar of total assets, the company generated $2.38 in sales in 2022, $2.57 in 2023, and $2.21 in 2024.

Overall, the trend in total asset turnover shows fluctuations over the years, which may be attributed to changes in the company's sales strategy, asset utilization, or business operations. A higher total asset turnover ratio generally indicates better asset utilization efficiency. It would be beneficial for Everus Construction Group Inc to further examine the factors behind these fluctuations in the total asset turnover ratio to optimize their asset utilization and improve operational efficiency.