GE Vernova LLC (GEV)

Short-term

Turnover ratios

Based on the provided data for GE Vernova LLC, let's analyze the activity ratios:

1. Inventory Turnover:
- The inventory turnover ratio measures how efficiently a company manages its inventory.
- GE Vernova's inventory turnover ratios for the respective periods are 3.95, 3.39, 3.28, 3.49, and 3.98.
- Overall, the inventory turnover appears steady with some fluctuations over time, indicating that the company is efficiently managing its inventory levels.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company collects payment from its customers.
- The data shows "— " for all periods, suggesting that receivables turnover data is not available or the company may not have meaningful receivables turnover.

3. Payables Turnover:
- The payables turnover ratio measures how quickly a company pays its suppliers.
- The data indicates "— " for all periods, implying that information on payables turnover is not provided or may not be significant for analysis.

4. Working Capital Turnover:
- The working capital turnover ratio shows how effectively a company generates revenue relative to its working capital.
- GE Vernova's working capital turnover ratios for the periods are not available for 2023 and 2024; however, values of 20.37, 18.04, and 14.16 are indicated for June, September, and December 2024, respectively.
- The decreasing trend in working capital turnover may suggest a declining efficiency in generating revenue in relation to working capital over the latter half of 2024.

Overall, the analysis of activity ratios for GE Vernova LLC indicates effective management of inventory, potential inefficiencies in collecting receivables and paying payables, and a declining trend in working capital turnover efficiency in generating revenue in the latter part of 2024.

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Average number of days

Based on the provided data, GE Vernova LLC's activity ratios can be analyzed as follows:

1. Days of Inventory on Hand (DOH):
- The company's inventory turnover period ranged from 91.70 days to 111.31 days over the course of 2024.
- A decreasing trend in DOH from December 2023 to December 2024 indicates a more efficient management of inventory levels.

2. Days of Sales Outstanding (DSO):
- The DSO data is not available for any of the periods in 2024, suggesting that receivables turnover information is not provided or may not be relevant for this analysis.

3. Number of Days of Payables:
- The data for the number of days of payables is not available for any of the periods in 2024, making it challenging to assess the company's efficiency in paying its debts.

Overall, the available information on activity ratios for GE Vernova LLC indicates improvements in managing inventory turnover during 2024. The lack of data on DSO and payables turnover hinders a comprehensive assessment of the company's efficiency in managing receivables and payables. Additional data and context would be needed to provide a more in-depth analysis of the company's working capital management and operational efficiency.

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Long-term

In analyzing the long-term activity ratios of GE Vernova LLC, we focus on two key ratios: Fixed Asset Turnover and Total Asset Turnover.

1. Fixed Asset Turnover: This ratio measures how efficiently the company is utilizing its fixed assets to generate sales. A higher ratio indicates better efficiency. GE Vernova's Fixed Asset Turnover ratios for the periods ending March 31, 2024, June 30, 2024, and September 30, 2024, were 7.40, 7.47, and 7.63 respectively. These numbers suggest that the company achieved a significant turnover of fixed assets during these periods. However, no data was provided for the December 31, 2023, and December 31, 2024 periods, which limits the ability to track the trend over the full year.

2. Total Asset Turnover: This ratio demonstrates how effectively the company is using all its assets to generate revenue. A higher ratio indicates better efficiency in utilizing assets. GE Vernova's Total Asset Turnover ratios for the periods ending December 31, 2023, March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024, were 0.70, 0.70, 0.70, 0.68, and 0.68, respectively. Generally, a stable Total Asset Turnover ratio across consecutive periods could indicate consistent asset utilization for revenue generation. However, a slight decrease from 0.70 to 0.68 in the latter part of 2024 may suggest a potential decline in efficiency in utilizing total assets to generate sales.

Overall, based on the data provided, GE Vernova LLC appears to have efficiently utilized its fixed assets in generating sales, as indicated by the increasing trend in Fixed Asset Turnover. The Total Asset Turnover remained relatively stable, although there was a slight decrease towards the end of 2024. It is essential for the company to continue monitoring these ratios to ensure optimal asset utilization and sustainable revenue generation.