Consolidated Edison Inc (ED)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.65 | 15.48 | 16.23 | 13.75 | 14.32 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | 195.51 | 9.58 | 110.29 | — |
1. Inventory Turnover:
Consolidated Edison Inc's inventory turnover ratio has shown a fluctuating trend over the years. Starting at 14.32 in 2020, it decreased to 5.65 in 2024, indicating that the company was holding inventory for a longer period in 2024 compared to 2020. However, there was a noticeable increase to 16.23 in 2022, suggesting an improvement in inventory management efficiency that year.
2. Receivables Turnover:
The receivables turnover ratio data is not available for any of the years provided, potentially indicating that the company does not report this metric or that the ratio could be excessively high. Without this data, it is challenging to assess the efficiency of Consolidated Edison Inc in collecting its receivables.
3. Payables Turnover:
Similar to receivables turnover, payables turnover data is also not available for any of the years provided. The absence of this information makes it difficult to evaluate how effectively the company is managing its accounts payable.
4. Working Capital Turnover:
The working capital turnover ratio for Consolidated Edison Inc varies significantly between the years. From 110.29 in 2021 to 195.51 in 2023, there seems to be a high turnover of working capital during these years, indicating efficient use of funds to generate revenue. However, the absence of data for 2020 and 2024 limits the ability to analyze the trend accurately.
In conclusion, while the analysis of the activity ratios provides some insights into Consolidated Edison Inc's operational efficiency, the lack of data for certain metrics hinders a comprehensive evaluation of the company's overall performance in managing its inventory, receivables, payables, and working capital.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 64.63 | 23.59 | 22.49 | 26.55 | 25.49 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Consolidated Edison Inc's activity ratios provide insights into the efficiency of the company's operations.
1. Days of Inventory on Hand (DOH): This ratio measures how quickly the company is able to sell its inventory. From 2020 to 2024, there has been a fluctuation in the DOH, with the highest being 64.63 days in 2024 and the lowest being 22.49 days in 2022. A lower DOH indicates that the company is effectively managing its inventory and turning it into sales quickly.
2. Days of Sales Outstanding (DSO): The data provided does not include information on DSO, which is typically used to assess how long it takes for a company to collect its accounts receivable. Without this data, it is challenging to evaluate the effectiveness of the company in collecting revenue from customers.
3. Number of Days of Payables: Unfortunately, the information on the number of days of payables is also not available. This ratio is crucial in understanding how long it takes for the company to pay its suppliers, which can impact cash flow and relationships with vendors.
In summary, while the DOH data indicates some fluctuations in inventory management efficiency for Consolidated Edison Inc, the absence of DSO and payables data limits a comprehensive analysis of the company's overall activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 0.34 | 0.28 | 0.26 |
| Total asset turnover | 0.66 | 0.22 | 0.23 | 0.22 | 0.19 |
To analyze Consolidated Edison Inc's long-term activity ratios, we will focus on the Fixed Asset Turnover and Total Asset Turnover ratios over the past five years.
1. Fixed Asset Turnover:
- The Fixed Asset Turnover ratio measures how efficiently a company generates revenue from its fixed assets.
- Consolidated Edison Inc's Fixed Asset Turnover has shown a gradual improvement from 0.26 in 2020 to 0.34 in 2022.
- The ratio indicates that for every dollar invested in fixed assets, the company generated $0.34 in revenue in 2022.
- It is important to note that data for 2023 and 2024 is unavailable, so we cannot assess the trend for those years.
2. Total Asset Turnover:
- The Total Asset Turnover ratio reflects how well a company utilizes its total assets to generate revenue.
- Consolidated Edison Inc's Total Asset Turnover increased from 0.19 in 2020 to 0.66 in 2024.
- This significant improvement suggests that the company became more efficient in generating revenue relative to its total asset base over the past five years.
- However, there was a slight dip in the ratio in 2023, indicating a potential decrease in asset utilization efficiency during that year.
In conclusion, while the Fixed Asset Turnover ratio exhibited a positive trend up to 2022, data limitations prevent a comprehensive analysis for 2023 and 2024. On the other hand, the Total Asset Turnover ratio showed a notable improvement over the five-year period, suggesting enhanced efficiency in utilizing total assets to generate revenue, with a temporary setback in 2023.