Evergy, Inc. (EVRG)

Short-term

Turnover ratios

Based on the provided data for Evergy, Inc., we can analyze the activity ratios as follows:

1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company manages its inventory. Evergy's inventory turnover has fluctuated over the periods, ranging from a low of 3.57 to a high of 5.88. A higher inventory turnover indicates that the company is selling its inventory more quickly, which is generally favorable.

2. Receivables Turnover: Unfortunately, data for Evergy's receivables turnover is not provided, which makes it challenging to assess how effectively the company is collecting on its credit sales. A higher receivables turnover ratio would indicate a more efficient collection process.

3. Payables Turnover: No data for the payables turnover ratio is available. This ratio helps in understanding how quickly a company pays its suppliers, which can be crucial for managing cash flows and maintaining relationships with suppliers.

4. Working Capital Turnover: Similarly, data for the working capital turnover ratio is not provided. This ratio assesses how efficiently a company is utilizing its working capital to generate sales revenue. A higher ratio indicates more effective utilization of working capital.

In conclusion, while we can analyze the inventory turnover for Evergy, the lack of information on receivables turnover, payables turnover, and working capital turnover limits a comprehensive assessment of the company's overall activity ratios. It is essential to have complete data for all these ratios to gain insights into how effectively Evergy manages its inventory, receivables, payables, and working capital.

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Average number of days

Based on the provided data, let's analyze the activity ratios of Evergy, Inc. using the following metrics:

1. Days of Inventory on Hand (DOH):
- The average number of days Evergy holds its inventory increased from 68.90 days in March 2020 to a peak of 102.37 days in December 2024. This indicates that the company's inventory holding period has been rising over the years, which may suggest challenges in managing inventory levels efficiently.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data available for Days of Sales Outstanding (DSO) for Evergy, Inc., for the entire period provided. DSO measures the average number of days it takes for a company to collect revenue after a sale has been made. Since no DSO data is available, it is not possible to analyze the efficiency of Evergy's account receivables management.

3. Number of Days of Payables:
- Similarly, there is no data available for the Number of Days of Payables for Evergy, Inc., for the period provided. This ratio measures the average number of days it takes a company to pay its suppliers. Without this data, it is challenging to assess Evergy's effectiveness in managing its payables.

In conclusion, based on the available data, Evergy, Inc. has shown an increasing trend in its Days of Inventory on Hand. However, the lack of information regarding Days of Sales Outstanding and Number of Days of Payables limits a comprehensive analysis of the company's overall activity ratios and working capital management efficiency.

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Long-term

The fixed asset turnover ratio of Evergy, Inc. has been relatively stable over the past few years, ranging between 0.25 and 0.27. This indicates that the company generates around $0.25 to $0.27 in revenue for every dollar invested in fixed assets. A stable ratio suggests efficient utilization of fixed assets to generate sales.

In contrast, the total asset turnover ratio has shown more variability, fluctuating between 0.17 and 0.20. This ratio reflects how effectively the company is using its total assets to generate revenue. The fluctuations may suggest changes in the company's asset base or operational efficiency over the years.

Overall, while the fixed asset turnover ratio indicates consistent performance in utilizing fixed assets, the total asset turnover ratio shows some variability in the company's ability to generate revenue from its total asset base. Further analysis of the reasons behind the fluctuations in the total asset turnover ratio could provide valuable insights into Evergy's operational efficiency and asset management strategies.