Fluor Corporation (FLR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 13,389.00 | 14.06 | 64.32 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 7.75 | 8.14 | 7.52 | 7.50 | 10.72 |
Fluor Corporation's Inventory turnover has shown a significant decrease from 64.32 in December 2020 to 14.06 in December 2021, indicating that the company is managing its inventory less efficiently. The drastic increase to 13,389.00 in December 2022 seems unusual and may require further investigation due to the exceptional nature of this figure. The lack of data for 2023 and 2024 limits our ability to provide a meaningful trend analysis for this ratio.
The Receivables turnover ratio data is not available for any of the years provided, indicating that we cannot evaluate the effectiveness of the company in collecting its receivables.
Similarly, the Payables turnover ratio data is also not provided, suggesting that we lack insights into Fluor Corporation's ability to manage its payables effectively.
Fluor Corporation's Working Capital turnover has shown a slight fluctuation over the years, with values of 10.72 in December 2020, 7.50 in December 2021, 7.52 in December 2022, 8.14 in December 2023, and 7.75 in December 2024. This ratio indicates how efficiently the company is utilizing its working capital to generate revenue. The decreasing trend from 2020 to 2021 suggests a slightly less effective use of working capital, although the subsequent years show relatively stable values.
Overall, further analysis may be needed to understand the reasons behind the fluctuations observed in the activity ratios of Fluor Corporation and to assess the company's operational efficiency and financial performance fully.
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 | — | — | 0.03 | 25.95 | 5.67 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Fluor Corporation's activity ratios:
1. Days of Inventory on Hand (DOH):
- As of December 31, 2020, the company held inventory for approximately 5.67 days before selling it.
- By December 31, 2021, this days of inventory on hand increased significantly to 25.95 days, indicating a slowdown in inventory turnover.
- Surprisingly, by December 31, 2022, the days of inventory on hand drastically dropped to a mere 0.03 days, potentially indicating efficient inventory management or a decrease in inventory levels.
- However, there is missing data for the years 2023 and 2024, making it challenging to ascertain the company's recent inventory management performance.
2. Days of Sales Outstanding (DSO):
- Unfortunately, data for the days of sales outstanding is not provided for any of the years, indicating a lack of information on how quickly the company collects its accounts receivable.
3. Number of Days of Payables:
- Similar to DSO, there is no data available for the number of days of payables for any of the years, which would have provided insights into how long the company takes to pay its suppliers.
In conclusion, based on the limited information provided, Fluor Corporation experienced fluctuations in its days of inventory on hand over the years, with significant changes observed between 2021 and 2022. However, the absence of data for days of sales outstanding and number of days of payables hinders a comprehensive analysis of the company's overall liquidity and efficiency in managing its working capital.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 30.75 | 32.17 | 27.93 |
| Total asset turnover | 1.78 | 2.22 | 2.01 | 1.71 | 2.14 |
Fluor Corporation's long-term activity ratios, specifically the Fixed Asset Turnover and Total Asset Turnover, provide insight into how efficiently the company is utilizing its assets to generate revenue.
Starting with Fixed Asset Turnover, which measures how well the company is using its fixed assets to generate sales, we see an increasing trend from 27.93 in 2020 to 32.17 in 2021, then a slight decrease to 30.75 in 2022. However, there is missing data for 2023 and 2024. Generally, a higher fixed asset turnover ratio indicates better efficiency in asset utilization.
Moving on to the Total Asset Turnover, which assesses the company's ability to generate sales from all its assets, we observe a decrease from 2.14 in 2020 to 1.71 in 2021, then an increase to 2.01 in 2022, further improving to 2.22 in 2023, before dropping to 1.78 in 2024. A higher total asset turnover ratio signifies that the company is more efficient in generating revenue from its total assets.
Overall, while Fluor Corporation's Fixed Asset Turnover demonstrates fluctuations and missing data in recent years, the Total Asset Turnover has shown a varied trend, which suggests differing levels of efficiency in asset utilization over the analyzed period. Further analysis and comparison with industry benchmarks could provide a more comprehensive understanding of Fluor Corporation's performance in terms of long-term asset management and revenue generation.