Frontier Communications Parent Inc (FYBR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 12.89 | 12.69 | 14.00 | 12.94 | 11.58 |
| Payables turnover | 4.89 | 3.67 | 4.41 | 5.98 | 8.56 |
| Working capital turnover | 11.37 | 19.16 | 5.18 | — | 34.79 |
The activity ratios of Frontier Communications Parent Inc provide insights into the efficiency of its operations in managing inventory, receivables, payables, and working capital.
1. Inventory Turnover: The data for inventory turnover is not provided, which makes it difficult to evaluate how effectively Frontier Communications Parent Inc is managing its inventory levels and converting them into sales.
2. Receivables Turnover: The receivables turnover ratio measures how many times a company's accounts receivable are collected during a period. Frontier Communications Parent Inc's receivables turnover has ranged from 11.58 in 2019 to 14.00 in 2021, indicating a consistent ability to collect payments from customers efficiently.
3. Payables Turnover: The payables turnover ratio reflects how many times a company pays off its accounts payable during a period. Frontier Communications Parent Inc's payables turnover has fluctuated, with a decrease from 8.56 in 2019 to 3.67 in 2022, and then an increase to 4.89 in 2023. This suggests some variability in the company's payment practices.
4. Working Capital Turnover: The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. Frontier Communications Parent Inc's working capital turnover ratios have varied significantly, from 5.18 in 2021 to 34.79 in 2019, implying fluctuations in how effectively the company is using its resources to generate sales.
Overall, while Frontier Communications Parent Inc demonstrates a strong ability to collect receivables efficiently, there are fluctuations in payables turnover and working capital turnover, which may warrant further investigation into the company's operational efficiency and financial management practices.
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 | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 28.31 | 28.76 | 26.08 | 28.21 | 31.52 |
| Number of days of payables | days | 74.66 | 99.36 | 82.67 | 61.08 | 42.65 |
Days of Inventory on Hand (DOH) measure for Frontier Communications Parent Inc is not provided in the table for the years under consideration, so we cannot assess the efficiency of inventory management.
Days of Sales Outstanding (DSO) for Frontier Communications fluctuated over the years. In 2023, the DSO was 28.31 days, showing a slight decrease compared to 2022 (28.76 days). The decrease indicates improvements in the collection of accounts receivable, with the company taking fewer days to collect outstanding sales.
Number of Days of Payables for Frontier Communications have also varied. In 2023, the company took 74.66 days to pay its payables, a decrease from 99.36 days in 2022. This decrease shows that Frontier Communications is paying its suppliers faster in recent years.
Overall, the trend in DSO and Days of Payables indicates that Frontier Communications has been managing its working capital effectively by reducing the time taken to collect receivables and pay its bills. This improved efficiency may positively impact the company's liquidity and financial health.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.41 | 0.49 | 0.70 | 0.55 | 0.63 |
| Total asset turnover | 0.28 | 0.31 | 0.39 | 0.43 | 0.46 |
The fixed asset turnover ratio for Frontier Communications Parent Inc has shown a declining trend from 0.63 in 2019 to 0.41 in 2023. This suggests that the company is generating less revenue from its investment in fixed assets over the years. A lower fixed asset turnover ratio may indicate inefficiency in utilizing fixed assets to generate revenue.
Similarly, the total asset turnover ratio has also exhibited a decreasing trend, declining from 0.46 in 2019 to 0.28 in 2023. This indicates that the company is generating less revenue from its total assets. A decreasing total asset turnover ratio could imply that the company's overall asset utilization efficiency is declining.
Both ratios suggest that Frontier Communications Parent Inc may be facing challenges in generating revenue relative to its investment in fixed assets and total assets. Further analysis and investigation into the company's operations and asset management strategies may be warranted to improve its long-term activity ratios.