Eversource Energy (ES)

Short-term

Turnover ratios

Based on the provided data for Eversource Energy, let's analyze the activity ratios:

1. Inventory Turnover: The inventory turnover ratio indicates how efficiently a company manages its inventory. Eversource Energy's inventory turnover fluctuated over the periods provided, ranging from a low of 13.60 to a high of 25.64. Generally, a higher inventory turnover ratio is preferred as it suggests that the company is selling its inventory quickly.

2. Receivables Turnover: Unfortunately, data for Eversource Energy's receivables turnover is not available (represented by "—"). This ratio helps assess how efficiently a company collects payments from its customers. A lower receivables turnover could indicate credit control issues or a customer base with slower payment cycles.

3. Payables Turnover: Similar to receivables turnover, data for Eversource Energy's payables turnover is not available (represented by "—"). The payables turnover ratio evaluates how quickly a company pays its suppliers. A lower payables turnover might suggest that the company is taking longer to settle its payables.

4. Working Capital Turnover: Unfortunately, data for Eversource Energy's working capital turnover is not available (represented by "—"). This ratio measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover is usually preferred as it indicates better utilization of resources.

In conclusion, while we can analyze the inventory turnover ratio for Eversource Energy, lack of data for receivables turnover, payables turnover, and working capital turnover restricts a comprehensive evaluation of the company's efficiency in managing its accounts receivable, accounts payable, and working capital. It is crucial for a complete assessment of the company's operational efficiency to have data for all these activity ratios.

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Average number of days

The Days of Inventory on Hand (DOH) ratio for Eversource Energy has shown fluctuations over the period analyzed. The ratio ranged between 14.24 days to 27.18 days, with an average of approximately 19.74 days. The trend indicates that the company took varying lengths of time to turn its inventory into sales during the period.

On the other hand, the Days of Sales Outstanding (DSO) and Number of Days of Payables ratios were not provided in the data, therefore, preventing a comprehensive analysis of Eversource Energy's activity ratios including these metrics.

In conclusion, based on the available information, Eversource Energy appears to have managed its inventory efficiently, although a more holistic analysis incorporating additional activity ratios would provide a more complete understanding of the company's working capital management and operational efficiency.

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Long-term

Eversource Energy's fixed asset turnover ratio remained stable around 0.30 from March 2020 to March 2023, indicating that the company generated $0.30 in revenue for each dollar invested in fixed assets. However, there was a significant spike in September 2023, with the ratio jumping to 3.74, which could be a result of an anomaly or a change in business operations. The absence of data for the year-end periods from 2023 to 2024 suggests potential reporting issues.

On the other hand, the total asset turnover ratio increased gradually from 0.20 in March 2020 to 0.23 in March 2023, signifying that Eversource Energy improved its efficiency in generating sales from its total assets over the years. The slight decline in the ratio after March 2023 to 0.19 in June 2024 may indicate a temporary dip in asset utilization efficiency.

Overall, a high fixed asset turnover and a stable total asset turnover ratio are generally positive indicators of efficient asset management, which could potentially lead to improved profitability for Eversource Energy. Further monitoring of the fixed asset turnover anomaly and the total asset turnover trend would be essential for a comprehensive assessment of the company's long-term activity performance.