Green Plains Renewable Energy Inc (GPRE)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Inventory turnover 13.01 14.78 15.29 17.28 18.27 17.83 15.17 14.11 16.24 16.35 10.88 9.35 13.43 11.43 8.39 8.10 8.98 13.82 16.26 15.60
Receivables turnover 25.91 34.28 28.17 34.67 34.59 24.31 26.64 34.61 33.33 29.73 20.97 21.41 23.39 27.21 26.80 29.28 34.21 19.22 18.97 34.00
Payables turnover 15.04 22.02 23.91 23.21 16.63 24.18 33.22 27.83 15.04 27.61 24.93 27.17 17.97 21.27 20.47 20.30 14.70 25.41 26.84 31.33
Working capital turnover 13.41 10.55 12.63 12.14 9.48 9.85 11.77 10.56 8.29 6.90 6.53 5.25 4.38 3.51 3.31 3.13 10.14 12.19 12.34 24.83

The activity ratios analysis of Green Plains Renewable Energy Inc reveals important insights into the efficiency of its operations.

1. Inventory Turnover: The company's inventory turnover has shown fluctuations over the years but generally ranged from around 8 to 18 times per year. A higher turnover indicates that the company is selling goods quickly and efficiently.

2. Receivables Turnover: Green Plains Renewable Energy Inc's receivables turnover has varied, with values falling between approximately 18 to 35 times per year. Higher turnover rates suggest that the company is effective in collecting its accounts receivable.

3. Payables Turnover: The payables turnover also displayed fluctuations, averaging between 15 to 34 times per year. A higher turnover rate indicates that the company is managing its payables efficiently.

4. Working Capital Turnover: The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales. Green Plains Renewable Energy Inc's turnover ratios have ranged from approximately 3 to 13 times per year. A higher ratio implies effective utilization of working capital in generating sales.

Overall, by analyzing these activity ratios, it can be concluded that Green Plains Renewable Energy Inc has shown fluctuations in its efficiency over time in managing its inventory, receivables, payables, and working capital in generating sales. It would be beneficial for the company to focus on maintaining or improving these ratios to enhance operational efficiency and profitability.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Days of inventory on hand (DOH) days 28.05 24.70 23.87 21.12 19.98 20.47 24.06 25.88 22.48 22.33 33.54 39.02 27.19 31.94 43.51 45.05 40.66 26.41 22.45 23.40
Days of sales outstanding (DSO) days 14.09 10.65 12.96 10.53 10.55 15.02 13.70 10.55 10.95 12.28 17.41 17.05 15.61 13.41 13.62 12.47 10.67 18.99 19.24 10.74
Number of days of payables days 24.27 16.58 15.27 15.73 21.95 15.09 10.99 13.12 24.26 13.22 14.64 13.43 20.31 17.16 17.83 17.98 24.83 14.36 13.60 11.65

Green Plains Renewable Energy Inc's activity ratios indicate the efficiency of the company in managing its operating assets and liabilities.

1. Days of Inventory on Hand (DOH):
The trend in DOH shows fluctuations over the years, with values ranging from as low as 19.98 days to as high as 45.05 days. A decreasing trend in DOH from December 2023 to December 2024 suggests that the company has been more efficient in managing its inventory levels during this period. However, further analysis is needed to understand the reasons behind the changes in inventory management.

2. Days of Sales Outstanding (DSO):
The DSO values also show variability over the years, ranging from 10.53 days to 19.24 days. There is no clear trend in the DSO values, indicating inconsistent collection of receivables. The company should focus on improving its accounts receivable process to reduce DSO and enhance cash flow efficiency.

3. Number of Days of Payables:
The number of days of payables ranges from 10.99 days to 24.83 days, indicating fluctuations in the company's payment terms to suppliers. The increase in payables days from March 2020 to December 2022 suggests a longer period taken by the company to settle its payables. However, from December 2022 to December 2024, there is a slight decrease in payables days, indicating improved management of payables during this period.

Overall, Green Plains Renewable Energy Inc should focus on optimizing its inventory levels, streamlining accounts receivable processes, and managing payables effectively to improve its overall efficiency and liquidity position. Further investigation into the underlying factors driving these changes in activity ratios is recommended to make informed business decisions.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Fixed asset turnover 2.36 2.52 2.77 2.99 3.23 3.46 3.47 3.61 3.56 3.49 3.41 3.25 3.16 2.97 2.70 2.31 2.40 2.52 2.79 3.10
Total asset turnover 1.38 1.47 1.60 1.70 1.70 1.79 1.76 1.83 1.73 1.69 1.46 1.36 1.31 1.18 1.09 0.95 1.22 1.41 1.51 1.59

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Green Plains Renewable Energy Inc's fixed asset turnover ratio has been gradually increasing from 3.10 in March 2020 to 2.36 in December 2024. This indicates that the company has become more efficient in using its fixed assets to generate revenue over the years.

Total asset turnover ratio reflects the company's overall efficiency in generating sales from all of its assets. Green Plains Renewable Energy Inc's total asset turnover ratio fluctuated over the years, with a peak of 1.83 in March 2023 and a low of 0.95 in March 2021. Generally, an increasing trend in total asset turnover ratio indicates improved efficiency in utilizing assets to generate sales.

In conclusion, Green Plains Renewable Energy Inc has shown overall improvement in both fixed asset turnover and total asset turnover ratios over the years, which suggests increased efficiency in utilizing its assets to generate revenue. This indicates positive operational performance and effective asset management within the company.