Exelon Corporation (EXC)

Short-term

Turnover ratios

Exelon Corporation's activity ratios show varying trends over the years based on the provided data:

1. Inventory Turnover:
- Exelon's inventory turnover has been relatively stable between 2020 and 2024, ranging from 5.66 to 7.32. This indicates that the company efficiently manages its inventory levels, with a higher turnover ratio generally being more favorable as it suggests faster sales and less money tied up in inventory.

2. Receivables Turnover:
- The receivables turnover for Exelon has shown an increasing trend from 3.50 in 2020 to 6.13 in 2024. This suggests that the company is collecting its accounts receivable more effectively over the years, possibly through improved credit policies or more efficient collections processes.

3. Payables Turnover:
- The payables turnover ratio fluctuates significantly for Exelon, with a sharp increase from 2.73 in 2020 to 4.49 in 2021, followed by a decrease to 1.63 in 2022. The absence of data for 2023 and 2024 implies that payables turnover may not be relevant or easily calculable for those years. A higher payables turnover ratio can indicate that the company is paying its suppliers more quickly.

4. Working Capital Turnover:
- There is a lack of data available for Exelon's working capital turnover for all years, indicating that this ratio may not be applicable or is not calculated by the company. Working capital turnover measures how efficiently a company utilizes its working capital to generate sales, but without data, it is challenging to assess this aspect of Exelon's operations.

In summary, Exelon Corporation's activity ratios reflect efficient inventory management and improving receivables turnover, while the payables turnover data is more erratic, and working capital turnover information is not provided for analysis. It may be beneficial for the company to continue monitoring and improving these ratios to optimize its working capital management and overall operational efficiency.

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Average number of days

Exelon Corporation's activity ratios provide insights into how efficiently the company manages its inventory, accounts receivable, and accounts payable.

1. Days of Inventory on Hand (DOH): Exelon's DOH has shown a decreasing trend from 64.54 days in 2020 to 52.67 days in 2024. The decreasing trend indicates that Exelon is managing its inventory more efficiently over the years, taking fewer days to turn its inventory into sales. This could be a result of effective inventory management practices or adjustments in production levels.

2. Days of Sales Outstanding (DSO): Exelon's DSO has fluctuated over the years, starting at 104.22 days in 2020, reaching a low of 56.65 days in 2023, and increasing slightly to 59.50 days in 2024. The decreasing trend from 2020 to 2023 indicates that Exelon has been collecting its accounts receivable faster, which is a positive sign of effective credit and collection policies. The slight increase in 2024 could suggest a softer approach to collections to maintain customer relationships.

3. Number of Days of Payables: Exelon's data shows variability in the number of days of payables, ranging from 81.27 days in 2021 to 223.39 days in 2022. A higher number of days of payables indicates that Exelon takes longer to pay its suppliers, potentially indicating improved cash flow management or negotiation terms. However, the absence of data for 2023 and 2024 suggests a change in reporting practices or challenges in tracking this metric.

In summary, Exelon Corporation's activity ratios reflect improvements in inventory management efficiency and effective accounts receivable collections. The variability in the number of days of payables underscores the importance of analyzing trends over time and across the industry to assess the company's financial health and operational effectiveness.

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Long-term

Exelon Corporation's long-term activity ratios reveal its efficiency in utilizing its assets to generate revenue. The fixed asset turnover ratio increased from 0.20 in 2020 to 0.29 in 2024, indicating an improvement in the company's ability to generate sales from its fixed assets over the years. This suggests that Exelon has been able to make more effective use of its long-term investments in property, plant, and equipment.

Similarly, the total asset turnover ratio remained relatively stable at around 0.13 in 2020 and 2021, but then rose to 0.21 by the end of 2024. This indicates that Exelon has been able to increase its overall sales in relation to its total assets, reflecting improved efficiency in utilizing both fixed and current assets to generate revenue.

Overall, the upward trend in both the fixed asset turnover and total asset turnover ratios indicates that Exelon has been effectively managing its assets to drive revenue growth and maximize operational efficiency over the analyzed period.