EQT Corporation (EQT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 2.68 | 3.45 | 4.63 | 4.53 | 3.95 |
| Receivables turnover | 7.55 | 4.66 | 2.13 | 5.40 | 4.86 |
| Payables turnover | 2.06 | 1.78 | 1.88 | 3.38 | 4.03 |
| Working capital turnover | — | 26.57 | — | — | 10.80 |
Given the data provided, we can see that EQT Corp has shown varying trends in its activity ratios over the past five years.
Starting with the receivables turnover ratio, which measures how efficiently a company collects its outstanding receivables, we observe a fluctuating pattern. In 2023, the ratio stands at 7.55, indicating that the company collected its receivables approximately 7.55 times during the year. This represents a significant improvement from the previous year, where the ratio was 4.66. The upward trend suggests that EQT Corp has been more efficient in collecting payments from its customers in recent years.
On the other hand, the payables turnover ratio, which reflects how quickly a company pays its suppliers, has consistently remained at 0.00 over the past five years. This implies that EQT Corp has not been able to effectively manage its accounts payable turnover during this period.
The working capital turnover ratio, which measures how efficiently a company utilizes its working capital to generate sales, shows a substantial increase from 10.80 in 2019 to 26.57 in 2022. However, in 2023, this ratio is not available. This could suggest that the company was able to generate more revenue for each dollar of working capital invested in 2022 compared to the previous years.
Overall, EQT Corp's activity ratios exhibit mixed performance, with improvements in receivables turnover and working capital turnover, but stagnant payables turnover. Further analysis of the underlying factors driving these ratios would be necessary to fully assess the company's operational efficiency.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 136.12 | 105.79 | 78.78 | 80.57 | 92.43 |
| Days of sales outstanding (DSO) | days | 48.35 | 78.28 | 171.27 | 67.60 | 75.12 |
| Number of days of payables | days | 176.99 | 205.06 | 194.19 | 107.83 | 90.59 |
Days of sales outstanding (DSO) is a measure of how long it takes for a company to collect revenue after a sale is made. In the case of EQT Corp, the trend of DSO over the past five years shows fluctuation. In 2021, DSO spiked significantly to 171.27 days, indicating a prolonged collection period, which could potentially signal difficulties in collecting revenue or managing accounts receivable efficiently. This was followed by a sharp decrease in 2022 to 78.28 days, suggesting an improvement in the collection process. In 2023, DSO further decreased to 48.35 days, indicating that EQT Corp has been able to collect revenue more promptly compared to the previous year, which may be a positive sign of effective credit and collection management.
Days of inventory on hand (DOH) measures how efficiently a company manages its inventory by indicating the number of days it takes to turn inventory into sales. Unfortunately, the DOH data for EQT Corp is missing for all the years provided. Without this information, it is challenging to assess EQT Corp's inventory management efficiency and its ability to control inventory levels effectively.
The number of days of payables is a measure of how long a company takes to pay its suppliers. However, this data is also missing for EQT Corp for all the years provided. As such, it is not possible to evaluate EQT Corp's payment practices or liquidity management based on this metric.
In conclusion, while the analysis of Days of Sales Outstanding (DSO) indicates some trends in EQT Corp's collection efficiency over the past five years, the missing data for Days of Inventory on Hand (DOH) and Number of Days of Payables limits the comprehensive assessment of the company's activity ratios. More complete information on all these metrics would provide a clearer picture of EQT Corp's operational efficiency and working capital management.
See also:
EQT Corporation Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.30 | 0.41 | 0.17 | 0.19 | 0.27 |
| Total asset turnover | 0.27 | 0.33 | 0.14 | 0.17 | 0.23 |
The long-term activity ratios for EQT Corp, specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency of the company in generating revenues from its long-term assets.
The fixed asset turnover ratio has fluctuated over the past five years, indicating varying levels of efficiency in utilizing fixed assets to generate revenue. In 2023, the fixed asset turnover ratio decreased to 0.30 from 0.41 in 2022, suggesting a decline in the company's ability to generate sales from its fixed assets. However, the ratio is still higher compared to 2021 and 2020, reflecting some improvement in asset utilization.
Similarly, the total asset turnover ratio has also exhibited fluctuations during the same period. In 2023, the total asset turnover ratio stood at 0.27, down from 0.33 in 2022. This indicates a decline in the overall efficiency of the company in generating sales relative to its total assets. However, like the fixed asset turnover ratio, the total asset turnover ratio in 2023 is higher compared to the ratios in 2021 and 2020.
Overall, the trends in both fixed asset turnover and total asset turnover suggest that EQT Corp has experienced some fluctuations in asset efficiency over the past five years. The company may need to focus on optimizing the utilization of its long-term assets to improve its revenue generation capabilities in the future.