Green Plains Renewable Energy Inc (GPRE)

Short-term

Turnover ratios

The activity ratios of Green Plains Renewable Energy Inc indicate the efficiency of the company in managing its assets and liabilities over the years.

1. Inventory turnover has shown a positive trend, increasing from 7.90 in 2020 to 13.01 in 2024. This suggests that the company is selling its inventory more frequently, which is a positive sign for liquidity and operational efficiency.

2. Receivables turnover ratio experienced fluctuations but generally remained within a reasonable range, indicating that the company is efficient in collecting payments from its customers. The ratio decreased in 2021 but improved in subsequent years, reaching 25.91 in 2024.

3. Payables turnover ratio remained relatively stable over the years, indicating that the company is managing its payments to suppliers effectively. The ratio was highest in 2021 at 17.97 and then stabilized around 15.04 in the following years.

4. Working capital turnover improved significantly from 2020 to 2024, indicating that the company is generating higher revenue relative to its working capital investment. The ratio increased from 10.14 in 2020 to 13.41 in 2024, suggesting improved efficiency in utilizing working capital.

In conclusion, the overall trend in activity ratios for Green Plains Renewable Energy Inc reflects positive efficiency in managing inventory, receivables, payables, and working capital over the years.

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Average number of days

Based on the data provided for Green Plains Renewable Energy Inc, let's analyze the activity ratios:

1. Days of Inventory on Hand (DOH):
- The company's Days of Inventory on Hand have decreased from 46.19 days in 2020 to 28.05 days in 2024. This indicates that the company is managing its inventory more efficiently and is able to turn over its inventory at a faster rate over the years.

2. Days of Sales Outstanding (DSO):
- The Days of Sales Outstanding have fluctuated but remained relatively stable over the years, ranging from 10.55 days in 2023 to 15.61 days in 2021. This shows that the company is efficient in collecting payments from its customers, with a slight increase in 2021 but a decrease in 2023.

3. Number of Days of Payables:
- The Number of Days of Payables shows a decreasing trend from 28.21 days in 2020 to 24.27 days in 2024. This indicates that the company is taking longer to pay its suppliers, potentially improving its cash flow position by delaying payments.

Overall, the trend in these activity ratios suggests that Green Plains Renewable Energy Inc has been effectively managing its inventory, accounts receivable, and accounts payable over the years, which is a positive sign for the company's operational efficiency and financial performance.

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Long-term

The fixed asset turnover ratio for Green Plains Renewable Energy Inc has shown a positive trend over the five-year period, increasing from 2.40 in 2020 to 3.23 in 2023 before slightly decreasing to 2.36 in 2024. This indicates that the company is generating more revenue from its fixed assets over time, which is generally a positive indicator of operational efficiency.

In contrast, the total asset turnover ratio has fluctuated over the same period, with a moderate increase from 1.22 in 2020 to 1.73 in 2022, followed by a slight decrease to 1.38 in 2024. Despite the fluctuations, the total asset turnover ratio remains relatively stable, showing that the company is effectively utilizing its total assets to generate revenue.

Overall, the increasing trend in fixed asset turnover suggests that Green Plains Renewable Energy Inc is efficiently utilizing its fixed assets to generate revenue, while the stability in total asset turnover indicates a consistent level of efficiency in utilizing all assets to generate sales over the years.