Consolidated Edison Inc (ED)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 11.00 | 11.21 | 11.74 | 11.93 | 10.50 | 10.48 | 12.31 | 13.47 | 12.27 | 12.73 | 14.09 | 14.68 | 13.71 | 12.64 | 12.93 | 13.08 | 11.85 | 11.29 | 11.52 | 11.80 |
| Receivables turnover | 6.09 | 7.55 | 9.35 | 7.85 | 7.15 | 7.19 | 7.10 | 6.51 | 7.07 | 6.87 | 7.55 | 6.50 | 7.12 | 8.00 | 9.10 | 9.22 | 10.04 | 9.99 | 11.14 | 9.24 |
| Payables turnover | 2.91 | 3.91 | 3.86 | 3.77 | 2.64 | 3.52 | 3.57 | 4.16 | 3.58 | 3.76 | 4.17 | 4.12 | 3.31 | 3.49 | 4.27 | 4.20 | 3.58 | 3.73 | 3.99 | 3.82 |
| Working capital turnover | 195.51 | — | 118.65 | 16.46 | 9.58 | — | — | 299.13 | 110.29 | — | — | — | — | — | — | — | — | — | — | — |
The activity ratios of Consolidated Edison, Inc. indicate the company's efficiency in managing its operational activities.
1. Inventory Turnover: This ratio measures how well the company manages its inventory by indicating the number of times inventory is sold and replaced within a specific period. Consolidated Edison, Inc. shows a consistent trend of improving inventory turnover from Q1 2023 to Q4 2023, indicating efficient inventory management.
2. Receivables Turnover: This ratio reflects how quickly the company collects payments from its customers. Consolidated Edison, Inc. has shown a generally stable and healthy receivables turnover over the quarters, with a slight increase from Q1 2022 to Q3 2023, indicating effective credit management.
3. Payables Turnover: This ratio demonstrates how quickly the company pays its suppliers. Consolidated Edison, Inc. shows a fluctuating payables turnover over the quarters but has generally maintained a moderate level of turnover, ensuring balanced supplier relationships.
4. Working Capital Turnover: This ratio assesses how effectively the company utilizes its working capital to generate revenue. Consolidated Edison, Inc. exhibits significant variations in working capital turnover over the quarters, indicating fluctuations in operational efficiency and capital utilization. The highest turnover in Q1 2022 and Q4 2023 suggests efficient utilization of working capital during those periods.
In conclusion, while the company demonstrates efficiency in managing inventory and collecting receivables, there are fluctuations in payables turnover and working capital turnover that may require further analysis to optimize operational performance.
Average number of days
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 33.19 | 32.55 | 31.10 | 30.60 | 34.78 | 34.83 | 29.65 | 27.09 | 29.75 | 28.68 | 25.91 | 24.87 | 26.63 | 28.87 | 28.24 | 27.91 | 30.80 | 32.34 | 31.68 | 30.93 |
| Days of sales outstanding (DSO) | days | 59.89 | 48.35 | 39.05 | 46.50 | 51.05 | 50.79 | 51.39 | 56.08 | 51.62 | 53.12 | 48.34 | 56.18 | 51.27 | 45.64 | 40.10 | 39.61 | 36.34 | 36.55 | 32.76 | 39.49 |
| Number of days of payables | days | 125.63 | 93.43 | 94.60 | 96.77 | 138.18 | 103.70 | 102.16 | 87.71 | 101.90 | 97.00 | 87.58 | 88.61 | 110.32 | 104.60 | 85.56 | 86.88 | 101.84 | 97.73 | 91.55 | 95.53 |
Consolidated Edison, Inc.'s activity ratios indicate the efficiency of the company in managing its inventory, receivables, and payables during the specified quarters.
1. Days of Inventory on Hand (DOH): The trend in DOH shows a consistent decrease from Q1 2022 to Q4 2023, indicating that the company is able to sell inventory at a faster rate. A lower DOH implies efficient inventory management and potentially lower storage costs.
2. Days of Sales Outstanding (DSO): DSO represents the average number of days it takes for the company to collect payment after making a sale. The decreasing trend in DSO from Q1 2022 to Q2 2023 suggests that Con Edison has been improving its collection efficiency. A lower DSO indicates that the company is collecting receivables more quickly.
3. Number of Days of Payables: The number of days of payables reflects how long it takes for Con Edison to pay its suppliers. There is a fluctuating pattern in the number of days of payables from Q1 2022 to Q4 2023, indicating variations in the company's payment practices. A longer period may suggest that the company is conserving cash by delaying payments.
Overall, these activity ratios provide insight into how effectively Consolidated Edison, Inc. is managing its working capital and operating cycle. A trend of decreasing DOH and DSO along with manageable days of payables can indicate improved efficiency and financial health for the company.
Long-term
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 0.30 | 0.31 | 0.32 | 0.34 | 0.34 | 0.30 | 0.29 | 0.29 | 0.28 | 0.28 | 0.27 | 0.27 | 0.26 | 0.27 | 0.27 | 0.28 | 0.29 | 0.29 | 0.29 | 0.30 |
| Total asset turnover | 0.22 | 0.24 | 0.24 | 0.25 | 0.23 | 0.23 | 0.22 | 0.22 | 0.22 | 0.21 | 0.21 | 0.20 | 0.19 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 |
Consolidated Edison, Inc.'s long-term activity ratios provide insights into the efficiency with which the company utilizes its fixed and total assets to generate revenue.
The fixed asset turnover ratio has fluctuated in the range of 0.29 to 0.34 over the past eight quarters, indicating that the company generates between $0.29 to $0.34 in revenue for every dollar invested in fixed assets. The slight increase in the ratio from Q1 2022 to Q1 2023 suggests that Consolidated Edison, Inc. has been able to improve its efficiency in utilizing its fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has also varied consistently in a narrower range of 0.22 to 0.25 over the same period. This ratio implies that the company generates between $0.22 to $0.25 in revenue for every dollar invested in total assets. The stability of this ratio indicates that the company has maintained a relatively consistent level of efficiency in utilizing its total assets to generate revenue.
Overall, while the fixed asset turnover ratio shows some fluctuations, the total asset turnover ratio remains relatively stable, suggesting that Consolidated Edison, Inc. has been able to manage its long-term assets efficiently to generate revenue consistently. Further analysis and comparison with industry benchmarks could provide additional insights into the company's performance in utilizing its long-term assets effectively.