Comfort Systems USA Inc (FIX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 93.73 | 64.33 | 96.26 | 114.88 | 171.44 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 33.87 | 27.42 | 30.25 | 16.11 | 24.02 |
Comfort Systems USA Inc's inventory turnover has shown a decreasing trend from 2020 to 2024, dropping from 171.44 to 93.73. This indicates that the company is holding inventory for a longer period on average before it is sold. A lower inventory turnover may suggest potential issues such as overstocking, slow-moving inventory, or declining sales.
The receivables turnover ratio information is not available for the years provided, which limits the analysis of the company's efficiency in collecting payments from its customers. Without this data, it is challenging to assess the effectiveness of the company's credit policies and the speed at which it collects receivables.
Similarly, information on payables turnover is not provided for the years in question, which would have allowed for an assessment of how quickly Comfort Systems USA Inc is paying its suppliers. Without this data, it is difficult to gauge the company's management of its accounts payable.
Comfort Systems USA Inc's working capital turnover has shown fluctuations over the period, with values ranging from 16.11 to 33.87. A higher working capital turnover indicates that the company is efficient in generating revenue from its working capital. This ratio reflects how well the company is utilizing its working capital to generate sales revenue.
In conclusion, while the inventory turnover and working capital turnover ratios provide some insight into Comfort Systems USA Inc's operational efficiency, the lack of data on receivables and payables turnover limits a comprehensive analysis of the company's overall activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 3.89 | 5.67 | 3.79 | 3.18 | 2.13 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Comfort Systems USA Inc's activity ratios indicate the efficiency of the company in managing its inventory, sales, and payables.
1. Days of Inventory on Hand (DOH):
- The trend of DOH shows an increase from 2.13 days in 2020 to 3.89 days in 2024.
- This increase suggests that Comfort Systems USA Inc is holding inventory for a longer period before turning it into sales, which may tie up funds and impact liquidity.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO, which is the number of days it takes for the company to collect payments after making a sale.
- Without this data, it is challenging to assess the efficiency of Comfort Systems USA Inc in collecting its accounts receivable.
3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is not available.
- This ratio would have provided insights into how long Comfort Systems USA Inc takes to pay its suppliers, impacting cash flow management and relationships with vendors.
In summary, while the inventory management of Comfort Systems USA Inc has shown a slight increase in holding period over the years, the lack of data on sales outstanding and payables hinders a comprehensive analysis of the company's overall activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 28.76 | 23.91 | 24.37 |
| Total asset turnover | 1.49 | 1.58 | 1.59 | 1.39 | 1.63 |
Comfort Systems USA Inc's Fixed Asset Turnover ratio has shown consistency over the past few years, ranging from a high of 28.76 in December 31, 2022, to a low of 23.91 in December 31, 2021. The company efficiently generates revenue in relation to its investment in fixed assets, indicating effective asset utilization.
In terms of Total Asset Turnover, Comfort Systems USA Inc has experienced fluctuations. While the ratio decreased from 1.63 in December 31, 2020, to 1.39 in December 31, 2021, it saw a slight improvement to 1.59 in December 31, 2022, before stabilizing around 1.58-1.49 in the following years. This indicates that the company is generating sales relative to its total assets at varying rates, with a slight downward trend towards the later years.
Overall, both ratios suggest that Comfort Systems USA Inc is effectively leveraging its assets to generate revenue, with the Fixed Asset Turnover indicating efficiency in utilizing fixed assets specifically. Fluctuations in the Total Asset Turnover ratio may warrant further investigation into the company's asset management strategies and overall operational efficiency.