IDACORP Inc (IDA)

Short-term

Turnover ratios

Activity ratios are important indicators of how efficiently a company is managing its resources. Let's analyze the activity ratios of Idacorp, Inc. based on the provided data.

1. Inventory Turnover: The inventory turnover ratio measures how many times a company sells and replaces its inventory over a period. Idacorp's inventory turnover has been fluctuating over the past eight quarters, ranging from 3.13 to 5.22. A higher turnover ratio indicates that Idacorp is managing its inventory efficiently.

2. Receivables Turnover: This ratio reflects how effectively a company is collecting on its credit sales. Idacorp's receivables turnover has varied between 6.23 and 9.05 over the same period. A higher turnover ratio suggests that the company is efficiently collecting payments from its customers.

3. Payables Turnover: The payables turnover ratio demonstrates how quickly a company pays off its suppliers. Idacorp's payables turnover has ranged from 1.63 to 3.40. A higher turnover ratio could indicate that Idacorp is maintaining good relationships with its suppliers while managing its cash flow effectively.

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 fluctuated significantly from 3.24 to 11.33. A higher turnover ratio indicates that Idacorp is efficiently using its working capital to drive revenue.

Overall, based on the activity ratios, Idacorp, Inc. appears to be managing its inventory, receivables, payables, and working capital efficiently. However, fluctuations in these ratios over time may warrant further investigation to understand the underlying factors driving these changes and their potential impacts on the company's financial performance.

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Average number of days

In analyzing Idacorp, Inc.'s activity ratios over the past eight quarters, we can observe the following trends:

1. Days of Inventory on Hand (DOH):
- Idacorp's DOH has shown fluctuations over the quarters, ranging from a low of 69.96 days in Q1 2023 to a high of 116.78 days in Q4 2023. This indicates that the company is holding inventory for longer periods in certain quarters, which can tie up capital and increase carrying costs.

2. Days of Sales Outstanding (DSO):
- The DSO for Idacorp also varies, with values ranging from 40.34 days in Q1 2022 to 58.60 days in Q4 2022. Lower DSO values imply that the company is able to collect revenue more quickly, which is indicative of efficient accounts receivable management.

3. Number of Days of Payables:
- Idacorp's days of payables have fluctuated significantly, with the number of days ranging from 107.46 days in Q1 2022 to 224.52 days in Q4 2023. A higher number of days of payables suggests that the company is taking longer to settle its outstanding payables, which can sometimes indicate strained relationships with suppliers or cash flow management strategies.

Overall, the trends in Idacorp's activity ratios suggest that the company's inventory management, accounts receivable collection, and accounts payable practices have varied over the quarters. Further analysis of the underlying reasons behind these fluctuations would provide more insights into the company's operational efficiency and working capital management.

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Long-term

The long-term activity ratios of Idacorp, Inc. indicate how efficiently the company is utilizing its assets to generate revenue. The fixed asset turnover ratio has been relatively stable over the past eight quarters, ranging from 0.30 to 0.33. This ratio measures how well the company is generating sales from its fixed assets, such as property, plant, and equipment. A fixed asset turnover ratio of around 0.30 to 0.33 suggests that Idacorp is generating approximately $0.30 to $0.33 in sales for every dollar invested in fixed assets.

On the other hand, the total asset turnover ratio, which reflects the company's ability to generate sales from all its assets, has also shown consistency, ranging from 0.20 to 0.23 over the same period. This ratio indicates that Idacorp is generating approximately $0.20 to $0.23 in sales for every dollar of total assets it possesses.

Overall, the stable nature of both the fixed asset turnover and total asset turnover ratios suggests that Idacorp has been efficiently utilizing its assets to generate revenue consistently over the past two years. This indicates effective asset management and operational performance by the company.