Evergy Inc. Common Stock (EVRG)
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 | 2.01 | 2.03 | 2.01 | 1.97 | 2.07 | 2.24 | 2.14 | 2.21 | 2.36 | 2.37 | 2.38 | 2.58 | 2.51 | 2.50 | 2.46 | 2.55 | 2.64 | 2.34 | 2.24 | 2.27 |
| Receivables turnover | 12.58 | 11.44 | 12.15 | 16.91 | 11.15 | 9.69 | 9.04 | 15.38 | 13.62 | 9.56 | 8.02 | 10.55 | 9.55 | 8.94 | 7.32 | 11.66 | 22.53 | 19.40 | 18.75 | 29.69 |
| Payables turnover | 2.53 | 3.59 | 3.96 | 3.89 | 2.31 | 3.47 | 2.87 | 3.41 | 2.09 | 2.96 | 3.29 | 3.68 | 1.94 | 3.57 | 3.84 | 4.27 | 2.40 | 3.41 | 3.93 | 3.61 |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Evergy Inc's activity ratios show variations in efficiency levels over the past eight quarters.
- Inventory turnover has been fluctuating between 1.93 and 2.71, indicating the company's ability to manage its inventory effectively. The decreasing trend in recent quarters suggests improved inventory management efficiency.
- Receivables turnover has been volatile, ranging from 14.07 to 28.62, reflecting the speed at which Evergy collects its receivables. The significant increase in Q1 2023 compared to the previous quarter may indicate aggressive efforts in collecting outstanding payments.
- Payables turnover has also shown fluctuations between 2.42 and 5.09, demonstrating the speed at which Evergy pays its suppliers. The increasing trend in payables turnover suggests the company is taking longer to settle its payables.
- No data is provided for the working capital turnover, potentially indicating an oversight in data recording or calculation.
Overall, Evergy Inc's activity ratios reflect its ability to manage inventory efficiently, collect receivables at varying speeds, and extend payment terms to suppliers. These ratios provide valuable insights into the company's operational efficiency and working capital management strategies.
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 | 181.66 | 180.11 | 181.99 | 185.41 | 176.62 | 162.65 | 170.59 | 165.34 | 154.84 | 153.70 | 153.20 | 141.33 | 145.22 | 145.96 | 148.46 | 142.97 | 138.43 | 156.19 | 163.06 | 160.76 |
| Days of sales outstanding (DSO) | days | 29.01 | 31.91 | 30.04 | 21.58 | 32.74 | 37.67 | 40.39 | 23.74 | 26.81 | 38.19 | 45.52 | 34.59 | 38.24 | 40.82 | 49.88 | 31.30 | 16.20 | 18.81 | 19.46 | 12.29 |
| Number of days of payables | days | 144.38 | 101.75 | 92.27 | 93.82 | 157.70 | 105.28 | 127.12 | 106.89 | 174.78 | 123.25 | 111.04 | 99.13 | 188.26 | 102.29 | 94.96 | 85.43 | 152.00 | 107.00 | 92.79 | 101.21 |
Evergy Inc's activity ratios provide insights into the efficiency of its operations and management of working capital.
1. Days of Inventory on Hand (DOH): Evergy Inc's DOH has been fluctuating over the quarters, ranging from 134.86 days to 189.53 days. This ratio indicates that, on average, the company holds inventory for around 140 to 190 days before it is sold. Evergy Inc should monitor its inventory levels closely to ensure they are in line with sales demand and avoid holding excess inventory that ties up working capital.
2. Days of Sales Outstanding (DSO): Evergy Inc's DSO also shows variability, ranging from 12.76 days to 25.94 days. A lower DSO indicates that the company is collecting its accounts receivable more quickly. There was a significant decrease in DSO from Q3 2023 to Q4 2023, which could signify more efficient credit management or improved collection procedures. Evergy Inc should continue to focus on timely collection of receivables to improve cash flow.
3. Number of Days of Payables: Evergy Inc's number of days of payables has shown fluctuations as well, ranging from 71.65 days to 150.63 days. A higher number of days of payables allows the company to delay payments to suppliers, potentially improving cash flow. However, this strategy needs to be balanced to maintain good relationships with suppliers. The sharp increase in days of payables from Q3 2023 to Q4 2023 should be evaluated to ensure it is sustainable.
Overall, Evergy Inc should continue monitoring its activity ratios to optimize working capital management, improve efficiency, and enhance cash flow. Periodic review and comparison of these ratios can help the company identify areas for improvement and make informed operational decisions.
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 | 0.23 | 0.24 | 0.26 | 0.27 | 0.26 | 0.26 | 0.25 | 0.25 | 0.27 | 0.27 | 0.27 | 0.27 | 0.25 | 0.25 | 0.26 | 0.26 | 0.27 | 0.27 | 0.28 | 0.26 |
| Total asset turnover | 0.18 | 0.18 | 0.19 | 0.20 | 0.20 | 0.19 | 0.19 | 0.18 | 0.20 | 0.20 | 0.19 | 0.19 | 0.18 | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.20 | 0.19 |
Evergy Inc's long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate revenue.
The fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 0.23 to 0.26. This ratio measures how well the company is generating revenue from its fixed assets. The consistent values suggest that Evergy Inc is effectively utilizing its fixed assets to generate sales. However, the ratio is relatively low, indicating that there may be room for improvement in optimizing the use of fixed assets to increase revenues.
On the other hand, the total asset turnover ratio has also been fairly stable, ranging from 0.18 to 0.20 over the same period. This ratio reflects the company's overall efficiency in generating sales from all its assets. The values being lower than the fixed asset turnover ratio suggest that Evergy Inc may have a significant portion of its assets that are not being fully utilized to generate revenue.
Overall, while Evergy Inc appears to be efficiently using its fixed assets to generate revenue, there may be potential for further optimization in leveraging its total assets to improve overall turnover ratios and profitability. Additional analysis and comparison with industry peers may provide further insights into the company's long-term activity performance.