GE Vernova LLC (GEV)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of GE Vernova LLC as follows:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times the company sells and replaces its inventory within a certain period.
- In December 2023, GE Vernova had an inventory turnover of 3.95, indicating that the company's inventory turned over approximately 3.95 times during that period.
- Over subsequent quarters, the inventory turnover ratio fluctuated slightly, with values of 3.23 in March 2024, 3.47 in June 2024, and 3.48 in September 2024. This suggests some consistency in the rate at which inventory is being sold and restocked over time.

2. Receivables Turnover:
- However, no data is provided for the receivables turnover ratio for GE Vernova across the given periods. This ratio typically measures how many times a company collects its outstanding receivables during a certain period, reflecting its efficiency in collecting payments from customers.

3. Payables Turnover:
- Similarly, there are no figures available for the payables turnover ratio for GE Vernova throughout the specified periods. The payables turnover ratio is used to assess how efficiently a company manages its payments to suppliers or vendors.

4. Working Capital Turnover:
- The working capital turnover ratio measures how effectively a company utilizes its working capital to generate sales revenue.
- In June 2024, GE Vernova had a working capital turnover of 80.41, indicating that the company generated $80.41 in revenue for every dollar of working capital employed during that period.
- By September 2024, the working capital turnover ratio decreased to 43.20, suggesting a decline in the efficiency of working capital utilization in generating sales.

Overall, while the inventory turnover of GE Vernova LLC shows stable efficiency in managing inventory, the lack of data for receivables and payables turnover limits a comprehensive assessment of the company's performance in managing its receivables and payables. The significant change in working capital turnover from June to September 2024 may warrant further analysis to understand the reasons behind the decrease in efficiency in utilizing working capital to generate sales.

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Average number of days

Based on the provided data for GE Vernova LLC, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- As of December 31, 2023, the company had 92.41 days of inventory on hand.
- By March 31, 2024, this figure increased to 112.89 days. This may suggest a buildup in inventory levels during this period.
- The days of inventory on hand decreased slightly by June 30, 2024, to 105.16 days, but remained relatively high.
- As of September 30, 2024, the DOH was 104.95 days. The trend indicates that the company is managing its inventory levels more efficiently compared to the prior quarter but still holding inventory for an extended period.

2. Days of Sales Outstanding (DSO):
- The data provided does not include specific values for Days of Sales Outstanding for any of the reported periods. Without this information, it is challenging to assess the efficiency of the company in collecting its accounts receivable.

3. Number of Days of Payables:
- Similar to DSO, the information on the number of days of payables is not provided in the dataset. Without this data, it is difficult to evaluate how effectively the company is managing its payables and cash conversion cycle.

In summary, based on the available information, GE Vernova LLC appears to be experiencing fluctuations in its inventory management efficiency over the reported periods, with varying levels of inventory on hand. However, a complete analysis of the company's working capital management would require additional details on DSO and the number of days of payables to assess the overall effectiveness of its operating cycle.

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Long-term

GE Vernova LLC's long-term activity ratios indicate its efficiency in generating sales from its assets.

The Fixed Asset Turnover ratio for the company is not provided as it is indicated as "—", which suggests that there may be no data available for this metric. Consequently, we cannot evaluate how effectively the company is utilizing its fixed assets to generate revenue over the quarters in the period.

On the other hand, the Total Asset Turnover ratio for GE Vernova LLC remained consistent at around 0.70 for the quarters ending in December 2023, March 2024, and June 2024, but showed a slight decrease to 0.68 in September 2024. This ratio signifies that the company generated $0.70 (or $0.68 in the last quarter) of sales for every dollar of assets it holds.

A decreasing trend in Total Asset Turnover may indicate that the company's asset utilization efficiency decreased slightly in the last observed period. This could be due to various factors such as declining sales or an increase in total assets without a proportional increase in revenue. It is important for the company to monitor this ratio and investigate the reasons behind any significant fluctuations to ensure efficient use of its assets in generating revenue.