Fluor Corporation (FLR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 13,389.00 | 16.03 | 64.72 | — |
| Receivables turnover | 13.61 | 12.39 | 15.71 | 13.36 | 14.37 |
| Payables turnover | 12.35 | 13.17 | 11.23 | 13.78 | 10.12 |
| Working capital turnover | 8.14 | 7.52 | 9.03 | 10.80 | 10.57 |
Inventory turnover could not be calculated based on the provided data, as the necessary information for this ratio is missing for all years.
The receivables turnover ratio for Fluor Corporation has been relatively stable over the past five years, ranging from 12.39 to 13.80. This indicates that the company is able to efficiently collect its accounts receivable, on average, a certain number of times per year. A higher receivables turnover ratio suggests a shorter collection period, which is positive for managing cash flows.
The payables turnover ratio for Fluor Corporation has fluctuated between 10.88 and 13.17 over the same period, with a peak in 2022. This ratio measures how quickly the company is paying its suppliers. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could potentially strain cash flow. Conversely, a lower ratio may indicate that the company is taking longer to pay its bills, which could be favorable for cash management.
The working capital turnover ratio for Fluor Corporation has shown some variability, with the highest value in 2020 and the lowest in 2021. This ratio measures how efficiently the company utilizes its working capital to generate revenue. A higher working capital turnover ratio indicates that the company is generating more revenue per unit of working capital invested, reflecting strong operational efficiency.
Overall, the analysis of Fluor Corporation's activity ratios suggests that the company is effectively managing its receivables and working capital, though there may be some fluctuations in payables turnover that warrant further attention.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 0.03 | 22.77 | 5.64 | — |
| Days of sales outstanding (DSO) | days | 26.82 | 29.45 | 23.24 | 27.32 | 25.40 |
| Number of days of payables | days | 29.55 | 27.72 | 32.50 | 26.48 | 36.05 |
To conduct a comprehensive analysis of Fluor Corporation's activity ratios, we will focus on the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables for the years 2019 to 2023.
1. Days of Inventory on Hand (DOH):
Unfortunately, the data provided for the Days of Inventory on Hand is missing for all years, making it impossible to analyze this important metric. DOH helps measure the efficiency of inventory management by indicating how many days a company's current inventory will last. Without this data, we are unable to assess Fluor Corporation's inventory turnover performance.
2. Days of Sales Outstanding (DSO):
Fluor Corporation's Days of Sales Outstanding (DSO) have shown some fluctuations over the five-year period. In 2023, the DSO decreased to 26.82 days from 29.45 days in 2022, indicating an improvement in the company's collection efficiency. A lower DSO suggests that Fluor is collecting its accounts receivable more quickly, which is a positive indicator of liquidity.
3. Number of Days of Payables:
Fluor Corporation's Number of Days of Payables has also fluctuated over the period under review. In 2023, the days of payables increased to 29.55 days from 27.72 days in 2022. A higher number of days of payables could imply that the company is taking longer to pay its suppliers, potentially indicating a strain on its working capital management.
Overall, the available data suggests that Fluor Corporation has shown improvement in its collection efficiency as seen in the decreasing trend of DSO. However, the increase in the number of days of payables in 2023 may warrant monitoring for its potential impact on the company's working capital and liquidity position. Further analysis of the missing DOH data would provide a more comprehensive assessment of Fluor Corporation's inventory management efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 33.79 | 30.75 | 31.04 | 34.04 | 25.98 |
| Total asset turnover | 2.22 | 2.01 | 2.00 | 2.16 | 1.94 |
Fluor Corporation's long-term activity ratios indicate the efficiency with which the company is utilizing its assets to generate sales. The fixed asset turnover, which measures how effectively the company is using its fixed assets to generate revenue, has been consistently increasing over the past five years, from 26.42 in 2019 to 33.79 in 2023. This suggests that Fluor Corporation has been improving its efficiency in utilizing its long-term assets to generate sales.
In contrast, the total asset turnover ratio, which assesses the overall efficiency of the company in generating revenue from all its assets, shows some fluctuation over the same period. The ratio was 1.80 in 2019, increased to 2.14 in 2020, then decreased to 1.71 in 2021, and subsequently improved to 2.01 in 2022 and further to 2.22 in 2023. While there have been fluctuations in this ratio, the overall trend indicates that Fluor Corporation has been efficient in generating sales relative to its total assets, with an increasing trend in the more recent years.
Overall, these long-term activity ratios suggest that Fluor Corporation has been effectively utilizing its long-term assets to generate revenue, as evidenced by the increasing trend in fixed asset turnover and the overall efficiency in generating sales relative to all assets shown by the total asset turnover ratio.