Equifax Inc (EFX)

Short-term

Turnover ratios

Equifax Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- Equifax's inventory turnover has shown fluctuating trends over the observed periods, ranging from 12.91 to 19.76.
- A higher inventory turnover ratio indicates that Equifax is efficiently managing its inventory levels and converting them into sales more frequently.

2. Receivables Turnover:
- The data provided does not include information on Equifax's receivables turnover, which is typically a measure of how quickly the company collects outstanding receivables from its customers.

3. Payables Turnover:
- Similar to receivables turnover, information on Equifax's payables turnover is not available in the data provided. Payables turnover ratio measures how quickly a company pays its suppliers.

4. Working Capital Turnover:
- Equifax's working capital turnover ratio ranges from 4.77 to 696.04 over the observed periods.
- A higher working capital turnover ratio indicates that Equifax is efficiently utilizing its working capital to generate sales revenue.

Overall, Equifax's inventory turnover and working capital turnover ratios suggest that the company is effectively managing its resources and operating efficiently in the short term, although further analysis of other activity ratios could provide a more comprehensive view of its operational performance.

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Average number of days

Activity ratios provide insights into how effectively a company manages its assets and liabilities to generate sales. Analyzing the activity ratios of Equifax Inc based on the provided data:

1. Days of Inventory on Hand (DOH): Equifax's DOH indicates the number of days it takes to sell its inventory. A decreasing trend in DOH from 28.26 days on March 31, 2020, to 18.47 days on September 30, 2024, suggests the company is efficiently managing its inventory, potentially due to improved inventory turnover or more effective inventory management practices.

2. Days of Sales Outstanding (DSO): The absence of data for DSO indicates that Equifax may not have accounts receivable or sell products/services on credit terms that would lead to a DSO calculation. This could suggest that Equifax's revenue collection process is immediate or involves minimal credit sales.

3. Number of Days of Payables: Similar to DSO, the lack of data for payables days suggests that Equifax may not have significant outstanding payables or utilizes quick payment terms with suppliers. This could indicate strong vendor relationships or a focus on timely payment.

In conclusion, Equifax's efficient management of inventory and potentially strong cash collections and payment practices are reflected in its activity ratios. However, the absence of DSO and payables data limits a comprehensive assessment of its overall asset and liability management efficiency.

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Long-term

Equifax Inc's long-term activity ratios provide insight into the efficiency of the company's assets utilization over time. The Fixed Asset Turnover ratio, which measures how well the company generates sales from its fixed assets, has shown a declining trend from 3.76 in March 2020 to 3.23 in December 2022. This indicates a potential decrease in the efficiency of Equifax's fixed asset utilization.

On the other hand, the Total Asset Turnover ratio, which indicates how effectively Equifax is using all its assets to generate revenue, has fluctuated but generally remained relatively stable over the same period. It ranged from 0.42 to 0.50, with a slight increase towards the end of the period.

Overall, the declining trend in Fixed Asset Turnover suggests potential issues with the company's fixed asset management efficiency, while the relatively stable Total Asset Turnover indicates consistent performance in asset utilization overall. Equifax may need to focus on optimizing the use of its fixed assets to improve overall efficiency and profitability in the long term.