Equifax Inc (EFX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 16.21 | 18.27 | 16.69 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Equifax Inc's inventory turnover ratio has shown an improving trend over the years, increasing from 16.69 in 2020 to 18.27 in 2021, before decreasing slightly to 16.21 in 2022. This indicates that Equifax has been effectively managing its inventory levels to generate sales.
However, data on receivables turnover, payables turnover, and working capital turnover are not provided for any of the years, making it challenging to assess the efficiency of Equifax's accounts receivable collection, accounts payable management, and the utilization of working capital.
In conclusion, while Equifax's inventory turnover ratio demonstrates efficient inventory management, a lack of data on other activity ratios limits a comprehensive analysis of the company's overall efficiency in managing its working capital and accounts receivable and payable turnover.
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 | — | — | 22.51 | 19.97 | 21.87 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Activity ratios, also known as efficiency ratios, help assess how well a company manages its resources to generate sales. Let's analyze Equifax Inc's activity ratios based on the provided data:
1. Days of Inventory on Hand (DOH):
- December 31, 2020: 21.87 days
- December 31, 2021: 19.97 days
- December 31, 2022: 22.51 days
- December 31, 2023: Not available
- December 31, 2024: Not available
The DOH ratio measures how many days a company takes to sell its inventory. A lower DOH indicates faster inventory turnover, which is generally favorable as it implies efficient inventory management. Equifax Inc has shown a decreasing trend in DOH from 2020 to 2021, suggesting improved efficiency in managing inventory.
2. Days of Sales Outstanding (DSO):
- December 31, 2020: Not available
- December 31, 2021: Not available
- December 31, 2022: Not available
- December 31, 2023: Not available
- December 31, 2024: Not available
DSO represents the average number of days a company takes to collect revenue after a sale. Lower DSO indicates quicker collection of accounts receivable, which is beneficial as it improves cash flow. Unfortunately, data on DSO for Equifax Inc is not available, making it challenging to assess its effectiveness in managing accounts receivable.
3. Number of Days of Payables:
- December 31, 2020: Not available
- December 31, 2021: Not available
- December 31, 2022: Not available
- December 31, 2023: Not available
- December 31, 2024: Not available
This ratio reflects the average number of days a company takes to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to settle its obligations, which can sometimes be advantageous as it delays cash outflows. However, without specific data for Equifax Inc, it is challenging to assess its payables management efficiency.
In summary, based on the available data, Equifax Inc appears to have shown improvements in inventory turnover based on the decreasing trend in DOH. However, without information on DSO and payables, a comprehensive assessment of the company's overall efficiency in managing its resources and cash flow is limited.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 3.23 | 3.74 | 3.62 |
| Total asset turnover | 0.48 | 0.43 | 0.44 | 0.45 | 0.43 |
The fixed asset turnover ratio for Equifax Inc has shown a fluctuating trend over the past five years. It increased from 3.62 in 2020 to 3.74 in 2021, indicating that the company generated more revenue relative to its fixed assets during that period. However, the ratio dropped to 3.23 in 2022, suggesting a decrease in efficiency in utilizing fixed assets to generate revenue. Unfortunately, data for 2023 and 2024 are unavailable for further analysis.
On the other hand, the total asset turnover ratio, which measures the company's overall efficiency in generating sales from all its assets, increased from 0.43 in 2020 to 0.45 in 2021 and then remained relatively stable at 0.44 in 2022 and 2023 before experiencing a significant increase to 0.48 in 2024. This indicates that Equifax managed to improve its overall asset utilization to generate higher sales in 2024 compared to the previous years.
In summary, while the fixed asset turnover ratio fluctuated during the period analyzed, the total asset turnover ratio showed an overall improvement, reflecting better asset utilization and revenue generation for Equifax Inc.