Fluor Corporation (FLR)

Short-term

Turnover ratios

Fluor Corporation's Inventory Turnover ratio has shown fluctuations over the years. The ratio improved significantly from 12.65 in June 2020 to a peak of 64.16 in December 2020, indicating a more efficient management of inventory. However, it decreased to around 14-15 in the following quarters, suggesting a potential slowdown in inventory turnover.

The Receivables Turnover ratio data is not available, making it difficult to assess the efficiency of the company in collecting receivables from customers.

Similarly, the Payables Turnover ratio data is not provided, which hinders the evaluation of how quickly Fluor is paying its suppliers.

The Working Capital Turnover ratio for Fluor Corporation has been decreasing gradually over the years, from 11.19 in March 2020 to 7.75 in December 2024. This declining trend indicates that the company is generating less revenue per dollar of working capital employed, which could signify potential inefficiencies in managing its working capital.

In conclusion, while the Inventory Turnover ratio highlights fluctuations in inventory management efficiency and the Working Capital Turnover ratio reflects a declining trend in utilizing working capital effectively, the lack of data for Receivables and Payables Turnover ratios limits a comprehensive analysis of Fluor Corporation's activity ratios.

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Average number of days

Fluor Corporation's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its payables.

1. Days of Inventory on Hand (DOH):
- The trend in Fluor Corporation's DOH shows fluctuations over the periods provided.
- The company had a high DOH of 28.85 days on June 30, 2020, which decreased to 5.69 days by December 31, 2020.
- Despite some variability, the DOH stayed relatively stable around the 24-26 days range from March 31, 2021, to December 31, 2021.
- Data for the later periods is not available, indicating a lack of information on the inventory turnover efficiency in recent years.
- A low DOH typically suggests efficient inventory management, while a high DOH indicates slow-moving inventory or potential liquidity issues.

2. Days of Sales Outstanding (DSO):
- The data for DSO is missing for all periods, indicating a lack of information on the average number of days it takes for Fluor Corporation to collect its accounts receivable.
- DSO is essential for assessing the company's credit policies and collection efficiency.
- Without this data, it is challenging to evaluate the effectiveness of Fluor Corporation's credit management practices and the speed of converting sales into cash.

3. Number of Days of Payables:
- Similar to DSO, information on the number of days of payables is missing for all periods provided.
- Days of payables is critical for understanding how long the company takes to pay its suppliers.
- It helps in assessing the company's liquidity position, cash flow management, and supplier relationships.

In conclusion, while the analysis of Fluor Corporation's activity ratios provides some insights into inventory management efficiency, the absence of DSO and payables data limits a comprehensive evaluation of the company's working capital cycle and overall operational effectiveness.

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Long-term

Long-term activity ratios provide insights into the efficiency of Fluor Corporation in managing its assets to generate sales.

1. Fixed Asset Turnover: This ratio measures how efficiently the company utilizes its fixed assets to generate revenue. From March 31, 2020, to March 31, 2024, the fixed asset turnover ratio fluctuated, ranging from a low of 25.19 to a high of 34.68. The increase in the ratio over time indicates that Fluor Corporation improved its utilization of fixed assets to generate revenue efficiently.

2. Total Asset Turnover: This ratio compares the total sales of the company to its total assets, reflecting the efficiency of asset utilization. From March 31, 2020, to December 31, 2024, the total asset turnover ratio varied, ranging from a low of 1.71 to a high of 2.31. The fluctuations in this ratio suggest changes in how effectively Fluor Corporation is using its total assets to generate sales over the years.

Overall, the increasing trend in both fixed asset turnover and total asset turnover ratios indicates improvement in the company's efficiency in utilizing its assets to generate revenue. However, it is essential to further analyze the factors contributing to these fluctuations to gain a comprehensive understanding of Fluor Corporation's long-term activity performance.