Comfort Systems USA Inc (FIX)

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 64.33 75.03 92.78 98.23 96.26 83.75 94.47 108.20 114.88 119.07 120.11 145.21 171.44 183.84 190.96 219.60 210.22 157.61 149.12 138.87
Receivables turnover 33.84 24.68 95.66 139.85 0.86 53.24 58.99 51.01 0.81 130.39 95.39 95.44 0.91 79.69 137.38 155.07 1.03 131.08 118.78 287.59
Payables turnover 10.04 9.17 9.75 10.34 10.07 9.67 10.04 10.09 9.85 10.03 10.91 12.32 11.31 13.23 11.54 12.27 10.77 11.30 11.50 13.17
Working capital turnover 27.42 27.10 249.91 84.60 30.25 12.35 13.31 11.65 16.11 17.95 28.54 39.87 24.02 18.45 25.85 9.96 14.35 14.39 11.89 15.31

Comfort Systems USA, Inc. has shown consistent improvement in its inventory turnover ratios over the quarters, indicating that the company is efficiently managing its inventory levels. The receivables turnover ratios have also shown stability over the periods, suggesting that the company is effective in collecting payments from its customers.

In terms of payables turnover, the company has been maintaining a relatively stable ratio, which indicates that Comfort Systems USA, Inc. is managing its payables effectively. The working capital turnover has shown significant fluctuations, with a sharp increase in Q2 2023, which may require further investigation to understand the reasons behind such a substantial change in working capital efficiency.

Overall, the activity ratios reflect that Comfort Systems USA, Inc. is efficiently managing its inventory, receivables, and payables, but there may be underlying factors contributing to the fluctuations in working capital turnover that need to be analyzed in more detail.

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 5.67 4.86 3.93 3.72 3.79 4.36 3.86 3.37 3.18 3.07 3.04 2.51 2.13 1.99 1.91 1.66 1.74 2.32 2.45 2.63
Days of sales outstanding (DSO) days 10.79 14.79 3.82 2.61 425.66 6.86 6.19 7.16 447.92 2.80 3.83 3.82 400.94 4.58 2.66 2.35 355.79 2.78 3.07 1.27
Number of days of payables days 36.36 39.81 37.45 35.29 36.23 37.73 36.35 36.18 37.04 36.40 33.47 29.63 32.26 27.59 31.63 29.76 33.89 32.29 31.74 27.72

Comfort Systems USA, Inc.'s activity ratios reflect the efficiency of its management of working capital.

1. Days of Inventory on Hand (DOH):
- The trend shows a fluctuation in the days of inventory on hand over the past eight quarters, ranging from 3.37 days to 5.67 days.
- In general, the company has been able to reduce the number of days inventory is held from Q1 2022 to Q3 2023, indicating improved inventory management efficiency.

2. Days of Sales Outstanding (DSO):
- Comfort Systems USA, Inc. experienced an increase in days sales outstanding from Q1 2022 to Q3 2023, with peak values in Q2 and Q3 2022.
- This indicates that the company is taking longer to collect payments from customers, which may suggest a need for improved credit control or collection processes.

3. Number of Days of Payables:
- The number of days of payables has remained relatively stable over the quarters, with a slight decrease in Q3 2023 compared to Q4 2022.
- This indicates that the company is maintaining consistent payment terms with its suppliers, potentially helping to manage cash flow and relationships with vendors.

Overall, Comfort Systems USA, Inc. should focus on improving its collection processes to reduce days sales outstanding and maintain efficient inventory management practices to optimize working capital utilization.

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 24.96 26.58 27.68 28.58 28.76 28.06 27.09 25.75 23.91 25.24 24.62 24.57 24.37 24.15 23.61 24.36 23.82 22.97 21.89 21.96
Total asset turnover 1.58 1.58 1.62 1.56 1.59 1.52 1.47 1.42 1.39 1.49 1.59 1.65 1.63 1.71 1.71 1.72 1.74 1.69 1.64 2.09

Comfort Systems USA, Inc. has demonstrated a consistently high fixed asset turnover ratio over the past eight quarters, ranging from 24.96 to 28.58. This indicates that the company efficiently generates sales revenue in relation to its investment in fixed assets, such as property, plant, and equipment. The firm is effectively utilizing its fixed assets to generate sales, which can be indicative of operational efficiency and effective asset management.

In terms of total asset turnover, Comfort Systems USA, Inc. has maintained a relatively stable ratio, fluctuating between 1.42 and 1.62. This ratio implies that the company generates sales revenue in relation to its total assets, including both fixed and current assets. The stability of this ratio suggests that the company is effectively utilizing its total assets to generate sales, which is crucial for overall financial performance.

In summary, Comfort Systems USA, Inc. is demonstrating efficient utilization of both fixed and total assets, as evidenced by its high fixed asset turnover and stable total asset turnover ratios. This efficiency in asset utilization can positively impact the company's profitability and overall financial health.