Equifax Inc (EFX)

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	—	30.08	28.25	25.24	30.28	28.65	25.95	26.47	34.93	30.99	28.13	25.47	33.15	27.26	26.84	26.70	39.22	28.51	23.31	17.30
Receivables turnover	5.53	5.06	5.17	5.28	5.76	5.93	5.60	5.75	6.56	6.74	6.52	6.03	6.38	6.29	6.12	5.84	6.44	6.49	6.59	6.44
Payables turnover	22.11	22.40	28.33	28.22	16.21	23.40	20.97	20.90	17.89	19.40	21.30	20.44	21.69	21.07	21.76	18.73	23.30	19.52	14.55	10.84
Working capital turnover	—	314.05	21.69	—	—	—	—	—	—	4.67	—	—	—	—	8.09	679.44	—	—	—	—

Equifax, Inc.'s activity ratios provide insights into the efficiency of the company's operations.

1. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently Equifax is collecting payment from its customers.
- The downward trend in receivables turnover from Q4 2022 to Q3 2023 suggests a potential lengthening in the average collection period which may indicate slower collections.
- However, the ratio remained relatively stable around 5.5 to 6.1 times during this period, indicating that Equifax is generally efficient in collecting payments from customers.

2. Payables Turnover:
- The payables turnover ratio reflects how quickly Equifax is paying its suppliers.
- The upward trend in payables turnover from Q4 2022 to Q3 2023 suggests that Equifax is taking longer to pay its suppliers, potentially improving its cash flow position.
- The ratio ranged from 8.68 to 15.17 times during this period, indicating variability in payment terms.

3. Inventory Turnover:
- Unfortunately, there is no data provided for inventory turnover, which assesses how quickly Equifax is selling its inventory. More data on this ratio could provide a more comprehensive picture of Equifax's efficiency in managing its inventory.

4. Working Capital Turnover:
- There is a significant spike in the working capital turnover ratio in Q3 2023 compared to the prior quarters, indicating a notable increase in operational efficiency.
- The lack of data for other quarters limits a comprehensive analysis of this ratio over time.

Overall, despite the positive trend in payables turnover and an overall stable receivables turnover, a closer look at inventory turnover would help provide a more holistic assessment of Equifax's operational efficiency.

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	—	12.13	12.92	14.46	12.06	12.74	14.07	13.79	10.45	11.78	12.98	14.33	11.01	13.39	13.60	13.67	9.31	12.80	15.66	21.10
Days of sales outstanding (DSO)	days	66.03	72.11	70.58	69.08	63.41	61.59	65.20	63.52	55.61	54.15	55.98	60.57	57.22	58.04	59.63	62.55	56.70	56.21	55.35	56.63
Number of days of payables	days	16.51	16.29	12.89	12.93	22.51	15.60	17.40	17.46	20.40	18.82	17.14	17.86	16.83	17.32	16.77	19.49	15.66	18.70	25.09	33.67

Days of Inventory on Hand (DOH) for Equifax, Inc. is not provided in the data table, which limits the analysis of this activity ratio.

Days of Sales Outstanding (DSO) has been showing a slight increasing trend over the last eight quarters, from 59.57 days in Q3 2022 to 68.78 days in Q3 2023. This indicates that it is taking the company longer to collect payments from its customers, which may signal potential issues with accounts receivable management or changes in customer payment behavior.

Number of Days of Payables has been fluctuating over the quarters, with a noticeable decrease from Q4 2022 to Q3 2023 before starting to increase again in recent quarters. The company seems to be taking longer to pay its suppliers, which could affect relationships with vendors or indicate internal cash flow management strategies.

Overall, Equifax, Inc.'s activity ratios suggest that there may be room for improvement in managing inventory, accounts receivable, and accounts payable to optimize the company's working capital cycle and efficiency in operations. Monitoring and potentially adjusting these ratios could help enhance liquidity and overall financial performance.

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	2.74	2.78	2.81	2.94	3.11	3.37	3.49	3.56	3.63	3.74	3.72	3.64	3.53	3.56	3.57	3.67	3.61	3.71	3.80	4.05
Total asset turnover	0.41	0.40	0.42	0.42	0.43	0.44	0.45	0.43	0.43	0.42	0.48	0.44	0.42	0.41	0.41	0.46	0.43	0.45	0.44	0.45

Equifax, Inc. demonstrates stable performance in terms of long-term activity ratios over the quarters provided. The Fixed Asset Turnover ratio has shown a slight decreasing trend, indicating that Equifax is generating slightly lower sales relative to its fixed assets over time. This may suggest a potential decrease in operational efficiency or slower utilization of fixed assets to generate revenue.

On the other hand, the Total Asset Turnover ratio has remained relatively consistent, fluctuating around 0.44 to 0.46. This suggests that Equifax has been able to effectively generate revenue in relation to its total assets, indicating stable efficiency in utilizing all assets, not just fixed assets, to generate sales.

Overall, while the Fixed Asset Turnover ratio shows a slight decline, the Total Asset Turnover ratio indicates that Equifax has been maintaining steady efficiency in generating revenue with its total asset base. Further analysis of specific factors affecting fixed asset utilization could provide deeper insights into the company's operational performance and potential areas for improvement.