EQT Corporation (EQT)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 2.68 | 3.45 | 4.63 | 4.53 |
| Receivables turnover | 4.29 | 7.55 | 4.66 | 2.13 | 5.40 |
| Payables turnover | 2.32 | 2.06 | 1.78 | 1.88 | 3.38 |
| Working capital turnover | — | — | 26.57 | — | — |
The activity ratios of EQT Corporation provide insights into the efficiency of the company's operations.
1. Inventory Turnover:
- EQT Corporation's inventory turnover ratio has been relatively stable over the years, ranging from 2.68 to 4.63. A higher inventory turnover indicates that the company is selling its inventory more quickly, which is generally favorable. However, the decrease in inventory turnover from 2022 to 2024 may suggest potential inventory management issues that need to be addressed.
2. Receivables Turnover:
- The receivables turnover ratio for EQT Corporation has shown significant fluctuations, ranging from 2.13 to 7.55. A higher receivables turnover implies that the company is collecting its receivables more efficiently. The substantial increase in 2023 indicates an improvement in the company's ability to collect outstanding payments from customers.
3. Payables Turnover:
- EQT Corporation's payables turnover ratio has also varied over the years, ranging from 1.78 to 3.38. A lower payables turnover ratio may suggest that the company is taking longer to pay its suppliers. The increase in payables turnover from 2022 to 2024 indicates that the company may be managing its payables more effectively.
4. Working Capital Turnover:
- The absence of working capital turnover data for certain years makes it challenging to evaluate EQT Corporation's efficiency in utilizing its working capital. However, a high working capital turnover ratio would typically indicate that the company is generating sales efficiently with its available working capital.
In conclusion, EQT Corporation's activity ratios reflect varying levels of efficiency in managing inventory, receivables, and payables. The company should focus on improving inventory turnover and maintaining a balance in receivables and payables turnover to enhance overall operational effectiveness.
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 | — | 136.12 | 105.79 | 78.78 | 80.57 |
| Days of sales outstanding (DSO) | days | 85.14 | 48.35 | 78.28 | 171.27 | 67.60 |
| Number of days of payables | days | 157.59 | 176.99 | 205.06 | 194.19 | 107.83 |
Activity ratios measure how efficiently a company manages its assets, specifically how quickly it processes inventory, collects receivables, and pays its payables.
1. Days of Inventory on Hand (DOH): EQT Corporation's DOH has shown fluctuation over the years, starting at 80.57 days in 2020, decreasing to 78.78 days in 2021, then increasing significantly to 105.79 days in 2022, and further rising to 136.12 days in 2023. However, there is missing data for 2024.
2. Days of Sales Outstanding (DSO): EQT Corporation's DSO also exhibits variability, with a significant increase from 67.60 days in 2020 to 171.27 days in 2021, followed by a decrease to 78.28 days in 2022, a further decline to 48.35 days in 2023, and then an increase to 85.14 days in 2024.
3. Number of Days of Payables: The number of days it takes EQT Corporation to pay its payables shows a less erratic trend compared to DOH and DSO. It was 107.83 days in 2020, increased to 194.19 days in 2021, further rose to 205.06 days in 2022, decreased to 176.99 days in 2023, and decreased again to 157.59 days in 2024.
Overall, EQT Corporation's activity ratios indicate some inefficiencies in managing inventory, receivables, and payables, which could impact the company's liquidity and overall financial health. Monitoring and improving these ratios could lead to more efficient operations and better financial performance in the future.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.17 | 0.30 | 0.41 | 0.17 | 0.19 |
| Total asset turnover | 0.13 | 0.27 | 0.33 | 0.14 | 0.17 |
The fixed asset turnover ratio for EQT Corporation has fluctuated over the years, indicating varying efficiency in generating revenue from its fixed assets. In 2020, the ratio was 0.19, decreasing to 0.17 in 2021, and then seeing a significant improvement to 0.41 in 2022. However, it decreased to 0.30 in 2023 before dropping back to 0.17 in 2024.
Similarly, the total asset turnover ratio for EQT Corporation reflects the company's ability to generate sales from its total assets. The ratio was 0.17 in 2020, declining to 0.14 in 2021, then improving to 0.33 in 2022. However, it decreased to 0.27 in 2023 and further dropped to 0.13 in 2024.
Overall, based on the long-term activity ratios, EQT Corporation experienced fluctuations in its efficiency in utilizing both fixed assets and total assets to generate sales over the years, with varying levels of performance and productivity.