Exelon Corporation (EXC)

Short-term

Turnover ratios

Exelon Corp.'s activity ratios provide insights into how efficiently the company is managing its assets and liabilities.

1. Inventory Turnover:
- Exelon's inventory turnover has been relatively stable over the quarters, ranging from 8.23 to 10.29.
- The consistent high turnover indicates that Exelon is effectively managing its inventory levels, selling and replacing stock quickly.

2. Receivables Turnover:
- Exelon's receivables turnover ratio shows a consistent pattern, ranging from 5.36 to 6.57.
- The company is efficient in collecting revenues from its customers, with a higher turnover ratio suggesting a shorter time span for collecting outstanding payments.

3. Payables Turnover:
- The payables turnover for Exelon fluctuates, ranging from 1.83 to 2.89.
- A higher turnover ratio indicates that Exelon is paying off its creditors more quickly, which may help to maintain good supplier relationships.

4. Working Capital Turnover:
- There is no data available for working capital turnover, which may indicate that Exelon's management does not use this particular ratio for performance evaluation or disclosure purposes.

In conclusion, Exelon Corp. demonstrates efficiency in managing its inventory, collecting receivables, and paying off its payables. This efficiency is crucial for maintaining liquidity, managing cash flows, and sustaining healthy financial operations.

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Average number of days

Exelon Corp.'s activity ratios provide insights into the efficiency of its operations and management of working capital.

1. Days of Inventory on Hand (DOH):
- Exelon has shown a decreasing trend in inventory holding period from Q4 2022 to Q4 2023, indicating better inventory management.
- The company held inventory for an average of 35.48 days in Q4 2023, slightly lower than in the previous quarter.
- Overall, Exelon has been able to reduce the number of days inventory is held on hand, which could suggest efficient inventory turnover.

2. Days of Sales Outstanding (DSO):
- Exelon's days of sales outstanding have fluctuated over the quarters, with a slight increase in Q4 2023 compared to the previous quarter.
- The average credit collection period was 56.46 days in Q4 2023, indicating an increase in the time taken to collect receivables from customers.
- Higher DSO may suggest potential issues with credit policies or collection efforts that could impact cash flow.

3. Number of Days of Payables:
- Exelon's payment period to suppliers has varied significantly, with a noticeable increase in Q4 2023 from the previous quarter.
- The company took an average of 126.27 days to pay its suppliers in Q4 2023, reflecting a longer payment cycle.
- A longer payment period may indicate cash flow management strategies or negotiations with suppliers but could also impact relationships with vendors.

Overall, Exelon Corp. should monitor these activity ratios continuously to ensure optimal working capital management and operational efficiency in its business activities.

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Long-term

Exelon Corp.'s long-term activity ratios provide insight into how effectively the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been relatively consistent, ranging from 0.28 to 0.36 over the past eight quarters. This indicates that Exelon is generating approximately 0.28 to 0.36 in revenue for every dollar invested in fixed assets.

The declining trend in fixed asset turnover may suggest that Exelon's efficiency in utilizing its fixed assets to generate revenue has decreased over time. This could be a concern as it may indicate underutilization or inefficiency in managing the company's long-term assets.

Similarly, the total asset turnover ratio has also shown a relatively consistent trend between 0.20 and 0.34 over the same period. This ratio signifies that Exelon is generating between 0.20 and 0.34 in revenue for every dollar invested in total assets.

The stagnant or declining total asset turnover ratio could indicate that Exelon is not efficiently utilizing its total assets to generate revenue. This might imply that the company needs to reevaluate its asset management strategies to improve efficiency and profitability.

Overall, Exelon Corp.'s long-term activity ratios suggest that the company may need to focus on optimizing its asset utilization to enhance its financial performance in the long run.