Helix Energy Solutions Group Inc (HLX)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 328.07 | 8.96 | — | 11.34 |
| Receivables turnover | 4.60 | 4.10 | 3.90 | 4.53 | 9.94 |
| Payables turnover | 8.10 | 6.08 | 7.50 | 13.07 | 8.89 |
| Working capital turnover | 5.18 | 5.37 | 2.69 | 2.98 | 4.90 |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate sales. Here is a detailed analysis of Helix Energy Solutions Group Inc based on its activity ratios:
1. Receivables Turnover:
- The receivables turnover has been relatively stable over the years, indicating that Helix Energy Solutions Group Inc efficiently collects its accounts receivable. A higher turnover ratio suggests quicker collection of outstanding payments from customers.
2. Payables Turnover:
- The payables turnover ratio fluctuates but has generally improved over the years. This suggests that the company is taking longer to pay its suppliers. A higher turnover ratio can indicate good relationships with suppliers or stringent payment terms.
3. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company utilizes its working capital to generate sales. A decreasing trend in this ratio may indicate a potential inefficiency in utilizing current assets to drive revenue.
Overall, Helix Energy Solutions Group Inc appears to effectively manage its receivables and payables. However, a closer examination of the working capital turnover ratio should be considered to understand how efficiently the company is utilizing its assets to drive sales.
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 | — | 1.11 | 40.75 | — | 32.17 |
| Days of sales outstanding (DSO) | days | 79.36 | 88.95 | 93.55 | 80.61 | 36.72 |
| Number of days of payables | days | 45.08 | 60.03 | 48.69 | 27.93 | 41.05 |
Based on the provided data for Helix Energy Solutions Group Inc's activity ratios, we can analyze the efficiency of the company's operations:
1. Days of Inventory on Hand (DOH):
Unfortunately, specific data for days of inventory on hand is not available for the respective years. This ratio typically measures how quickly a company can turn its inventory into sales, with a lower number indicating a faster turnover and potentially better management of inventory levels.
2. Days of Sales Outstanding (DSO):
The Days of Sales Outstanding ratio has been fluctuating over the years, ranging from 60.90 days in 2019 to 94.16 days in 2021. This ratio represents the average number of days it takes for the company to collect payment after making a sale. A lower DSO number is usually favorable as it indicates faster collection of receivables and improved cash flow management.
3. Number of Days of Payables:
The Number of Days of Payables ratio has also displayed variability, with figures ranging from 27.93 days in 2020 to 60.03 days in 2022. This ratio reflects how long a company takes to pay its suppliers. A longer period may indicate favorable credit terms but could also signal potential liquidity issues if payables are being stretched excessively.
In conclusion, while there is limited information on inventory turnover, the trends in Days of Sales Outstanding and Days of Payables ratios suggest fluctuations in collection and payment cycles over the years. Helix Energy Solutions Group Inc may benefit from focusing on optimizing inventory management, improving receivables collection efficiency, and maintaining a balance in managing payables to enhance overall operational efficiency.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.82 | 0.53 | 0.41 | 0.41 | 0.40 |
| Total asset turnover | 0.50 | 0.37 | 0.29 | 0.29 | 0.29 |
The fixed asset turnover ratio for Helix Energy Solutions Group Inc has improved steadily over the past five years, indicating the company's ability to generate more revenue from its fixed assets. In 2023, the fixed asset turnover ratio reached 0.82, showing a significant increase from 0.53 in 2022 and a consistent improvement compared to previous years. This suggests that Helix Energy Solutions Group Inc was more efficient in utilizing its fixed assets to generate sales in 2023.
On the other hand, the total asset turnover ratio also shows an upward trend, although not as sharp as the fixed asset turnover. The total asset turnover ratio increased from 0.37 in 2022 to 0.50 in 2023, demonstrating an enhancement in the company's ability to generate sales relative to its total assets. This improvement indicates that Helix Energy Solutions Group Inc was able to manage its total asset base more effectively to drive revenue growth in 2023.
Overall, the increasing trend in both the fixed asset turnover and total asset turnover ratios reflects positively on Helix Energy Solutions Group Inc's operational efficiency and performance in utilizing its assets to generate revenue over the past five years.