Fluor Corporation (FLR)

Short-term

Turnover ratios

Based on the activity ratios provided for Fluor Corporation, we can observe the efficiency of the company in managing its assets and liabilities during the various quarters indicated.

1. Receivables Turnover: This ratio indicates how many times a company's receivables are collected during a specific period. Fluor Corporation has consistently maintained a relatively stable receivables turnover ratio, ranging between 12.39 and 13.61 over the past eight quarters. This suggests that the company has been effective in collecting payments from its customers promptly.

2. Payables Turnover: The payables turnover ratio reflects how many times a company pays its suppliers within a given period. Fluor Corporation's payables turnover has shown some variability, fluctuating between 11.94 and 13.28. The company generally pays its suppliers more frequently than it collects from its customers, which can indicate good relationships with suppliers.

3. Working Capital Turnover: This ratio measures how efficiently a company utilizes its working capital to generate sales revenue. Fluor Corporation's working capital turnover has ranged from 7.41 to 9.26, showing fluctuations in its operational efficiency. The higher the turnover, the better the company is at generating revenue with its current assets.

Overall, Fluor Corporation appears to be managing its accounts receivable and payable effectively, as indicated by its stable receivables turnover and varying payables turnover. The working capital turnover ratios show some fluctuation, suggesting that the company's efficiency in generating sales with its working capital has varied over the quarters analyzed. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational performance.

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Average number of days

To analyze 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.

1. Days of Inventory on Hand (DOH):
Unfortunately, the data provided is either missing or not available for this metric across all quarters. DOH is a crucial measure of how efficiently a company manages its inventory levels. Without this information, we cannot assess Fluor Corporation's inventory turnover efficiency.

2. Days of Sales Outstanding (DSO):
Fluor Corporation's DSO has shown some fluctuations over the quarters, ranging from a low of 26.82 days in Q4 2023 to a high of 29.45 days in Q4 2022. A lower DSO indicates that the company is collecting its accounts receivable more quickly, which is generally favorable as it demonstrates efficient credit management and cash flow generation. However, it's important to keep track of any significant changes over time to identify potential issues with collections.

3. Number of Days of Payables:
The trend in Fluor Corporation's Number of Days of Payables indicates that the company takes approximately 27 to 30 days to pay its suppliers. A longer period suggests that the company is effectively using trade credit to manage its cash flow and working capital. However, too long a payment period could strain relationships with suppliers. It is crucial to strike a balance between timely payments and maintaining strong supplier relationships.

In conclusion, while we lack specific data on DOH, the DSO and Number of Days of Payables for Fluor Corporation provide insights into its management of accounts receivable and payables. Monitoring these metrics consistently can help assess the efficiency of the company's working capital management and overall financial health.

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Long-term

The fixed asset turnover ratio for Fluor Corporation has been consistently increasing over the past eight quarters, indicating that the company is generating more revenue relative to its investment in fixed assets. This suggests improved efficiency in utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has also shown an upward trend, reflecting the company's ability to generate sales relative to its total assets. This trend indicates that Fluor Corporation has been more effective in generating revenue from all its assets over the quarters analyzed.

Overall, both the fixed asset turnover and total asset turnover ratios exhibit positive trends, indicating improved efficiency and effectiveness in utilizing assets to generate revenue for Fluor Corporation.