IDACORP Inc (IDA)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 0.01 | 0.01 | 0.01 | 0.09 | 0.39 |
| Receivables turnover | 7.03 | 6.99 | 7.76 | 8.23 | 8.66 |
| Payables turnover | 0.00 | 0.00 | 0.01 | 0.07 | 0.40 |
| Working capital turnover | 4.21 | 10.22 | 4.82 | 3.41 | 6.37 |
The activity ratios for Idacorp, Inc. provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.
1. Inventory turnover: This ratio indicates how many times a company sells and replaces its inventory during a specific period. Idacorp's inventory turnover has fluctuated over the past five years, ranging from 2.50 to 5.08, with the highest turnover observed in 2022. This suggests that the company has improved its efficiency in managing and selling inventory over time.
2. Receivables turnover: The receivables turnover ratio measures how many times a company collects its accounts receivables during a period. Idacorp's receivables turnover has been relatively consistent, ranging from 6.23 to 8.46 over the last five years. A higher turnover indicates that the company is collecting its receivables more quickly, which can improve cash flow.
3. Payables turnover: This ratio shows how many times a company pays its suppliers during a specific period. Idacorp's payables turnover has declined from 2.58 in 2019 to 1.63 in 2023. A lower turnover may indicate that the company is taking longer to pay its suppliers, which could impact relationships with vendors.
4. Working capital turnover: This ratio measures how efficiently a company is utilizing its working capital to generate sales. Idacorp's working capital turnover has varied significantly, with the highest turnover observed in 2022. A higher turnover indicates that the company is effectively using its working capital to generate revenue.
Overall, the activity ratios for Idacorp, Inc. suggest improvements in inventory turnover efficiency, stable receivables turnover performance, a decrease in payables turnover, and fluctuating working capital turnover. It is essential for the company to continue monitoring and managing these ratios to ensure optimal operational efficiency and cash flow management.
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 | 49,804.81 | 35,385.53 | 34,175.23 | 4,162.74 | 947.72 |
| Days of sales outstanding (DSO) | days | 51.93 | 52.24 | 47.01 | 44.34 | 42.14 |
| Number of days of payables | days | 95,751.67 | 96,602.56 | 52,186.78 | 5,196.63 | 919.79 |
The activity ratios of Idacorp, Inc. reflect how efficiently the company manages its working capital and operating cycle.
1. Days of Inventory on Hand (DOH):
- The trend indicates that Idacorp has been keeping inventory for longer periods in recent years. This could signal potential inefficiencies in inventory management or slower inventory turnover. The DOH has increased significantly from 71.90 days in 2022 to 116.78 days in 2023.
2. Days of Sales Outstanding (DSO):
- Idacorp's DSO indicates the average number of days it takes to collect on its accounts receivable. The DSO has shown some variability but remains relatively stable over the years. In 2023, the DSO decreased slightly to 55.18 days from 58.60 days in 2022.
3. Number of Days of Payables:
- The number of days of payables represents how long it takes the company to pay its suppliers. Idacorp has been extending its payables timeline, as seen by the increasing trend in the number of days of payables over the years. The company took longer to pay its suppliers in 2023 with 224.52 days compared to 196.28 days in 2022.
Overall, the company may need to focus on optimizing its inventory management and payment cycles to improve efficiency and working capital management. A longer inventory holding period and increasing payables days could indicate potential liquidity or operational challenges that require attention for sustainable growth.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.27 | 0.29 | 0.27 | 0.26 | 0.27 |
| Total asset turnover | 0.18 | 0.20 | 0.18 | 0.17 | 0.18 |
The long-term activity ratios of Idacorp, Inc. provide insight into how efficiently the company is utilizing its assets to generate revenue over the years.
Fixed asset turnover, which measures the efficiency of utilizing fixed assets to generate sales, has fluctuated slightly between 0.29 and 0.32 over the past five years, indicating that on average, the company generates approximately $0.30 in sales for every dollar invested in fixed assets. The decrease from 2022 to 2023 suggests a potential decline in the efficiency of utilizing fixed assets to generate revenue.
Total asset turnover, which reflects the company's overall efficiency in generating sales from all assets, has also shown fluctuations between 0.19 and 0.22 over the same period. The ratio averaged around 0.20, indicating that Idacorp, Inc. generates $0.20 in sales for every dollar invested in total assets. The increase in 2022 may indicate improved efficiency in utilizing all assets to generate revenue, but the slight decrease in 2023 raises potential concerns about asset utilization efficiency.
Overall, while both ratios show some variability, it is important for Idacorp, Inc. to closely monitor and potentially improve asset utilization efficiency to ensure optimal revenue generation and long-term sustainability.